Deny, Delay and Defend - How Insurance Companies Don't Pay Claims and What You Can Do About It

You have paid you insurance coverage premiums forhopes the net result will be you give up because of
years without a claim. Now you have a claim, and arethe stress in continuing the fight or settle your claim
confident the insurance company will pay you thefor less than full value.
value of your claim immediately. The insuranceThe final component of this strategy, defend, often
company agent assured you that the policy fullybegins with a low-ball offer. Some insurance
covered you when you purchased it.companies have presented offers as low as $50 to
Reality versus your assumptions is about to set in.claimants. Insurance companies have developed
You have reported your claim and have provided alleffective protocols for dealing with specific claims
the requested details to your insurer. You waitthrough experience and case law.
patiently for confirmation of coverage. Sadly, youThere are certain ways of protecting your claim:
may be more likely to receive a letter denying your- Read your policy thoroughly and be sure you
claim than a check.understand what you are entitled to receive;
Many of the insurance giants instituted a policy of- Involve a lawyer as soon as practicable;
denying claims in an effort to become more- Fill out forms carefully. A honest mistake can be
profitable. To encourage adjusters to find creativeused by the insurance company to deny your claim;
reasons to deny valid claims, some insurance- Write letters or send emails rather than make
companies started an incentive program wherephone calls to the insurer. Everything you say needs
employees were rewarded for finding reasons toto be on paper as proof if you have to fight for
deny a claim. Common reasons for denial includeyour settlement;
paperwork errors and expiration of time periods for- If the insurance company sends you a check for
submission of documents.premium refunds because they are canceling your
Insurance companies have two major reasons toinsurance, do NOT cash the check. If you do, this
delay payment of claims. The first is, if themay be seen as agreement with the insurer's
settlement is delayed long enough, there is a chancedecision;
the policyholder may die before payment is made. If- Do not give up. Perseverance may win the day
the policyholder dies, the process for collecting theeven if it takes a long time.
funds becomes more difficult. The second reason is- Involve your Insurance Commissioner's office if the
the longer the insurer delays in making payment, theproblem warrants it.
more time the insurance company has to hold ontoIf your insurance company is utilizing the "deny, delay
premiums and earn money on their investments. Notand defend" strategy against you, it is strongly
only do insurance companies delay payments, theyrecommended you contact an experienced insurance
also attempt to delay court proceedings. The insurerattorney to protect your rights.