California Insurance Bad Faith Lawyer

Bad Faith in California Disability Claims

LTD insurance should provide income replacement when you are unable to work due to illness or injury. Unfortunately, California residents often encounter aggressive tactics from insurers looking to minimize payouts, especially under employer-sponsored plans.

While many LTD policies fall under ERISA, which limits your remedies, California law still plays a critical role:

• California bans discretionary clauses in group disability policies, reducing the deference courts give to insurer decisions
• If your policy is individually purchased (not through your employer/group), you can pursue bad faith damages, punitive damages, and jury trials
• Public employees (e.g., state university and corrections workers) may be covered by non-ERISA plans, even when the policy appears employer-sponsored

Our attorneys know how to determine which legal framework applies, and how to push back when insurers exploit the system.

California and Long-Term Care Insurance Bad Faith

Bad faith in LTCI (Long-Term Care Insurance) claims is a growing problem, especially in California, where aging policyholders rely on coverage for home care, assisted living, or nursing facility support.

Common bad faith tactics in LTCI cases include:

• Denying claims based on flawed or biased ADL assessments
• Ignoring signs of cognitive impairment or requiring excessive documentation
• Disputing the qualifications of licensed providers
• Asserting policy lapses despite failing to provide proper notice
• Delaying decisions to avoid paying benefits until it’s too late.

California’s long-term care laws are particularly strong, requiring advance notice before cancellation, standardized language, and clear disclosure of benefit triggers. If your LTC claim was wrongfully denied or delayed, we may be able to recover not just your benefits, but substantial damages.

Why Choose Sandstone Law Group?

In insurance bad faith cases, you are not just up against a denial; you are up against a company that has chosen to act dishonestly. When that happens, you need a legal team that understands the insurance industry inside and out and knows how to hold it accountable.

• We Listen First: From the first conversation, we treat you like a person, not a case file. We understand the emotional and financial toll of fighting an insurer that has broken your trust. We take the time to understand your story, your policy, and your goals, then we craft a legal strategy tailored to your situation. Getting to know you and your experiences is a big part of how we tailor our litigation to your case.
• We Know the Insurer’s Playbook: We have gone head-to-head with the largest LTD and LTCI insurers in the country, including those known for aggressive bad faith tactics. Our team has deep experience across bad faith lawsuits for long-term disability and long-term care insurance policies.
• We Are Built for Litigation: Insurance companies take us seriously because we prepare every case like it is going to trial. We do not back down. When an insurer denies a valid claim or behaves in bad faith, we are ready to escalate strategically and aggressively. If your case requires litigation, you will have experienced trial attorneys in your corner.
• We Get Results: We have secured millions in compensation for policyholders and families harmed by wrongful denials and deceptive insurance conduct.
• We Treat Clients Like Family: Our team brings a rare combination of legal firepower and genuine compassion. When you become our client, your fight becomes ours.

If your long-term disability or long-term care insurance claim has been denied under suspicious or abusive circumstances, you don’t have to accept it, and you don’t have to fight it alone. Choose a team with the experience, empathy, and edge to hold your insurer accountable.

How Sandstone Law Group Can Help You

We approach every insurance bad faith case in California with a strategic, individualized plan designed to maximize your recovery. Our process includes:

Assessing the Legal Viability of Your Case

Not every denied claim constitutes bad faith. We assess whether your situation meets the legal standards required to pursue a claim against the insurance company. This includes determining whether the denial was supported by a “reasonable basis” or whether it reflects misconduct, delay, or an improper attempt to avoid payment.

Determining Which Legal Framework Applies

One of the most critical steps is identifying whether your case is governed by state insurance bad faith laws or by ERISA. This distinction shapes everything, from how your case is handled, to where it is litigated, to what forms of compensation are available. We guide you through that analysis from the start.

Gathering and Organizing Critical Documentation

We help you identify and compile all relevant records, including medical evidence, correspondence with the insurer, internal claim notes, and denial letters. We know what documentation is necessary and how to organize it in a way that builds a strong case for benefits or bad faith damages.

Exposing Insurer Misconduct

Our team conducts a meticulous investigation into how your claim was handled. We identify where the insurer made errors, whether intentional or negligent, and whether those errors were part of a broader strategy to deny valid claims. From misapplied policy terms to biased reviews and unexplained delays, we know what to look for and how to prove it.

Pursuing Every Legal Remedy Available

Once we understand the full scope of your case, we pursue the benefits and compensation you are entitled to under the applicable law. That could mean recovery of past-due benefits, or, in non-ERISA cases, damages for emotional distress, attorney’s fees, and even punitive damages. We fight to recover not just what was wrongfully withheld, but what you need to move forward.