Billings, MontanaBillings Insurance Bad Faith
Billings Insurance Bad Faith Lawyers: Denied Hail Claims, Delayed Injury Claims and Lowball Offers in Yellowstone County
Boland Aarab PLLP.
If your insurer denied, delayed or lowballed a valid claim in Billings, whether for hail damage, a UIM claim or a business loss, Montana law may let you sue it. The Unfair Trade Practices Act gives policyholders and injured people a claim for certain violations. The deadlines are short: 2 years for policyholders and 1 year for third parties.
Denied, delayed or lowballed by an insurance company? Contact Boland Aarab PLLP for a free consultation at (406) 315-3737.
What insurance disputes come up most in Billings?
Hail. Billings knows hail. The Billings Gazette reported that 2014 was a record hail year for Billings according to the National Weather Service, and that a May 18, 2014 storm pounded parts of the city with golf-ball-sized hail across Musselshell, Yellowstone and Big Horn counties (Billings Gazette). After a big storm, thousands of roof, siding and vehicle claims hit adjusters at once. That is when claims get rushed: a quick inspection, a “wear and tear” or “prior damage” denial, a partial payment that ignores matching siding or code upgrades, or an offer far below a contractor’s estimate. The facts of each storm, including its date and path, can matter to proving the damage is new.
Uninsured and underinsured motorist claims. After a serious crash on I-90, I-94, Main Street in the Heights or King Avenue West, the at-fault driver’s policy is often too small. Montana’s minimum liability limit is only $25,000 per person (§ 61-6-103, MCA). The injured person then turns to their own UIM coverage, and sometimes finds their own insurer treating them as an opponent.
Medical bills during an injury claim. When liability is reasonably clear, the at-fault driver’s insurer may have to pay causally related medical bills before a final settlement. That is the Ridley rule, and insurers do not always volunteer it.
Commercial and business property claims. Billings is a regional business center. Business-interruption, fire, water and storm claims for local businesses can involve large sums and long delays.
Winter losses. Burst pipes, ice dams and roof collapses from snow load lead to “cause of loss” disputes every winter.
What happens when a Billings insurance claim goes wrong?
- Get the whole policy, including endorsements, and ask for the denial or compromise reason in writing (§ 33-18-201(14), MCA).
- Document the loss. Photos of the hail damage or the vehicle, contractor estimates, medical and wage records. Keep damaged materials until they are documented.
- Keep a claim log of every call, email and letter, with dates and names.
- Consider a regulatory complaint. The Montana Commissioner of Securities and Insurance, in Helena, takes consumer complaints (CSI). A complaint is not a lawsuit and does not stop any deadline.
- Talk to a lawyer before signing a release or accepting a “final” offer.
A bad-faith or contract case against an insurer, filed in state court by a Billings policyholder or claimant, is usually heard in the Thirteenth Judicial District Court at the Yellowstone County Courthouse, 217 North 27th Street (§ 3-5-101, MCA). Most large insurers are based outside Montana, so they frequently remove these cases to the Billings Division of the U.S. District Court, at the James F. Battin Federal Courthouse, 2601 2nd Avenue North (District of Montana). The claim file, which the insurer controls, is at the center of the case either way.
Montana law that applies
- Prohibited practices: § 33-18-201, MCA lists 15 unfair claim practices, including refusing to pay without a reasonable investigation and failing to settle promptly when liability is reasonably clear (§ 33-18-201, MCA).
- Your right to sue: an insured or third-party claimant may sue for violations of six of those subsections (§ 33-18-242, MCA). The insurer is not liable if it had a reasonable basis in law or fact for contesting the claim.
- Deadlines: 2 years from the violation for a policyholder; 1 year from settlement or judgment of the underlying claim for a third party (§ 33-18-242(8)). Policies also contain their own notice and suit deadlines.
- Advance payment: Ridley v. Guaranty National Insurance Co. requires a liability insurer to pay clear, causally related medical expenses before final settlement (Ridley, 1997).
- UM coverage must be offered on Montana auto policies (§ 33-23-201, MCA).
Our Montana insurance bad faith page explains first- and third-party claims, the reasonable-basis defense and damages in more depth.
Why hire a Great Falls firm for a Billings case?
Insurance companies handle Billings claims from offices all over the country, and a bad-faith case is built from the insurer’s own file and the policy language, not from local connections. We are based in Great Falls and handle these cases statewide. Our attorneys travel to Billings for inspections, depositions, hearings and trial, and our firm has tried jury trials in Yellowstone County. We are comfortable in the federal court where insurers often move these cases. We do not have a Billings office.
The Boland Aarab Way
- We know federal court. Our attorneys have handled more than 40 cases in the U.S. District Court for the District of Montana over nine years, and Samir Aarab has argued twice before the Ninth Circuit.
- We try cases. More than a dozen jury trials, in Cascade, Phillips, Meagher and Yellowstone Counties, and more than 4,000 hours in the courtroom.
- We protect verdicts. When a $168,500 jury verdict for our client was thrown out, we had it reinstated by the Montana Supreme Court (Voegel v. Salsbery, 2023 MT 137).
- We are part of the trial bar. Both attorneys are members of the American Association for Justice and the Montana Trial Lawyers Association; Samir Aarab is also a member of Public Justice.
Related Billings pages: truck accidents · wrongful death · all Billings personal injury cases
Frequently Asked Questions
My insurer denied my Billings hail claim as “old damage.” What can I do? Ask for the reason in writing, get an independent inspection and contractor estimate, and gather the storm date and weather records. If the insurer refused to pay without a reasonable investigation, you may have a claim (§ 33-18-201(4), MCA).
How long do I have to sue my own insurer for bad faith in Montana? Generally 2 years from the violation under the Unfair Trade Practices Act (§ 33-18-242(8), MCA). Your policy may have its own suit deadline, so check it early.
The at-fault driver’s insurer won’t pay my medical bills until I sign a release. Is that allowed? Not when liability and causation are reasonably clear. Under Ridley, the insurer may have to pay those bills before a final settlement.
Where would my case against an insurer be heard? In the Thirteenth Judicial District Court in Billings, or, if the insurer removes it, in the federal court’s Billings Division.
Should I file a complaint with the insurance commissioner? You can, and it may help. But a complaint to the Commissioner of Securities and Insurance does not stop any legal deadline.
Talk to a Billings Insurance Bad Faith Lawyer
Contact Boland Aarab PLLP for a free consultation at (406) 315-3737.
Our attorneys: Caitlin Boland Aarab · Samir F. Aarab
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Reading it does not create an attorney-client relationship.
