Kalispell, MontanaKalispell Insurance Bad Faith
Kalispell Insurance Bad Faith Lawyers: Denied, Delayed and Lowball Claims in the Flathead Valley
Boland Aarab PLLP.
If an insurer unreasonably denies, delays or underpays a claim in Kalispell, Montana’s Unfair Trade Practices Act may let you sue the insurer directly. A policyholder generally has two years from the violation. An injured third party generally has one year from the end of the underlying claim. These cases are usually filed in the Eleventh Judicial District Court and are often removed to federal court in Missoula.
Is an insurance company stonewalling your Flathead Valley claim? Contact Boland Aarab PLLP for a free consultation at (406) 315-3737.
What insurance disputes are common in the Flathead Valley?
- Crashes involving out-of-state drivers and rental cars. Summer brings visitors from across the country to Glacier National Park and Flathead Lake, many of them in rental cars. After a crash, a Kalispell resident may be dealing with an insurer based in another state, a rental company’s coverage, and their own UM/UIM carrier, each pointing at the others. Montana’s claim-handling rules still apply to insurers handling Montana claims.
- Underinsured motorist claims. Montana’s minimum liability limits are low ($25,000 per person and $50,000 per accident for injuries), so a serious injury quickly exceeds the at-fault driver’s policy (§ 61-6-103, MCA). Your own insurer then owes you a fair evaluation of your UIM claim, not an adversarial one.
- Medical bills during a claim. When liability is reasonably clear, Montana law can require the at-fault driver’s liability insurer to pay medical bills, and some lost wages, before final settlement (Ridley v. Guaranty National Insurance Co., 1997). Many injured Flathead residents don’t know to ask for this.
- Property claims from fire, smoke and winter. Wildfire seasons, heavy snow loads on roofs, frozen and burst pipes, and wind damage all lead to homeowner and business claims. Disputes arise over scope, pricing in a high-cost construction market, additional living expenses, and whether damage was “sudden” or “wear and tear.”
- Health and disability insurance. Denials of treatment, coverage for out-of-area specialty care (common when a Flathead patient must travel to Missoula, Seattle or Salt Lake City), and disability-benefit terminations.
What happens in a bad faith case from Kalispell?
- Document the claim history. Keep every letter, email, claim number, adjuster name and recorded-call reference. Write down dates of calls and what was said. Bad faith cases are built on the timeline.
- Make a clear demand. Often the first step is a written demand that lays out the facts, the policy language and Montana’s claim-handling requirements. Some insurers correct course at that stage.
- Regulatory complaint (optional). You can file a complaint with the Montana Commissioner of Securities and Insurance. It doesn’t replace a lawsuit and doesn’t stop the deadlines.
- Lawsuit. A bad faith or UTPA claim by a Flathead County resident is usually filed in the Eleventh Judicial District Court at the Flathead County Justice Center, 920 South Main Street, Kalispell. Most insurers are incorporated out of state, so these cases are frequently removed to the U.S. District Court’s Missoula Division, at the Russell Smith Courthouse, 201 East Broadway. The discovery fight over the claim file often decides the case.
- Timing with the underlying claim. For an injured third party, the bad faith claim usually follows the resolution of the underlying injury claim. The deadline is 1 year from that settlement or judgment.
Montana law that applies
A short summary; our Montana insurance bad faith lawyer page covers each doctrine.
- Prohibited claim practices: the UTPA lists 15, including refusing to pay without a reasonable investigation and failing to settle promptly when liability is reasonably clear (§ 33-18-201, MCA).
- Private right of action: six of those practices support a direct lawsuit (§ 33-18-242(1), MCA).
- Deadlines: 2 years for an insured and 1 year for a third-party claimant, measured as the statute provides (§ 33-18-242(8), MCA).
- Reasonable-basis defense: an insurer isn’t liable if it had a reasonable basis in law or in fact to contest the claim (§ 33-18-242(6), MCA).
- Punitive damages may be available for actual malice or fraud (§ 27-1-221, MCA).
Why hire a Great Falls firm for a Kalispell case?
Bad faith cases are fought on paper, in depositions of adjusters and claim managers, and often in federal court. We are based in Great Falls and handle insurance disputes statewide. Our attorneys travel to Kalispell and Missoula for depositions, hearings and trial. Our federal-court experience matters here because so many insurers remove these cases.
The Boland Aarab Way
- Federal-court experience: 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.
- Trial readiness: our attorneys have spent more than 4,000 hours in the courtroom. Insurers settle differently when they know a case will be tried.
- Appellate skill: we had a jury verdict reinstated in Voegel v. Salsbery, 2023 MT 137. The Boland Aarab appellate record reaches back to 1977.
- Consumer advocacy: both attorneys are AAJ and MTLA members, and Samir Aarab is a Public Justice member.
We also handle car accident cases in Kalispell and appeals from Flathead County. See our Kalispell personal injury page.
Contact Boland Aarab PLLP for a free consultation at (406) 315-3737.
Frequently Asked Questions
The tourist who hit me has an out-of-state insurer that won’t pay my medical bills. What can I do? If liability is reasonably clear, Montana law may require that insurer to pay medical bills as they come in, before a final settlement. We make that demand in writing.
My own insurer is lowballing my UIM claim after a crash on US-93. Is that bad faith? It can be. Your insurer must evaluate your UIM claim fairly and promptly. An unreasonable delay or lowball offer without a reasonable basis may violate Montana law.
My home was damaged by smoke during wildfire season and the claim was denied. Can I challenge it? Yes. We review the policy, the insurer’s investigation and its stated reasons. Denials that ignore the policy language or the evidence can support a claim.
Where would a Kalispell bad faith case be heard? It is usually filed in the Eleventh Judicial District Court in Kalispell, and often removed by the insurer to the federal court in Missoula.
How long do I have to sue my insurer in Montana? Generally 2 years from the violation for a policyholder, and 1 year from the settlement or judgment of the underlying claim for an injured third party.
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.
