Denied – Underpayment – Harassment

The story is a common one. A house catches fire and the insurance company refuses to pay the claim or offers payment of less than 40% of the cost to repair the damage. The policyholder tells the company about the new flat screen TV in the family room but she no longer has her receipt…since it burned in the fire. Does she wait to repair the damage while fighting with the insurance company or does she give in and agree to sign a settlement for a lower value just so she can move on with her life?

Our need to resolve losses and move on with our lives equals big profits at insurance companies.

What do you do when you insurance company refuses to pay or delays paying a claim…be it auto, home, business or an accident involving your property?

The same question applies when an insurance company pays only a portion of a claim or deliberately undervalues a claim.

When unnecessary delays, undervaluing of claims occurs deliberately or a policyholder is rushed to settlement of a claim, it is called “bad faith.”

In all states, an insurance company is obliged to act with the best interest of the client or policyholder. It does not matter whether you live in Texas or Maine. The legal obligations of an insurance company remain the same. The laws governing specifically when and how such matters are resolved in the courts can vary from state to state. However, the basic tenet governing how an insurance company must operate remains static.

When an insurance company fails to act in a fair and honest way toward its policyholders or is dishonest in any way, “bad faith” is said to have occurred.

Situations in which bad faith can occur vary widely, including auto insurance, life insurance, disability insurance, homeowners insurance, medical malpractice insurance, etc.

Examples of insurance bad faith include but are not limited to:

Delaying payment of claims for an unreasonable length of time

Denying coverage

Denying payment on claims

Failure to investigate a claim in a reasonable manner

Withholding benefits without cause

Underpayment of claims

Undervaluing claims

Unfairly refusing to settle or reimburse claims

Abusive behavior toward policyholders or unreasonable claims processes

Cancellation of insurance policy unjustly

Anyone can bring a civil action against an insurance company when the individual suffers damage due to an insurance company’s behavior. Such claims can be brought against companies for auto, home, business, professional liability, health, life, disability, and other types of insurance.

Health insurance can be a little tricky in that employer provided insurance is limited by Federal laws known as ERISA, the Employment Retirement Income Security Act. In other words, if you get your health insurance through your employer and a claim is denied, your ability to sue that insurance company may be limited. The laws in this area are in a state of constant change so do not assume you cannot sue. Talk to an attorney first.

How does it work?

Insurance companies employ entire departments of people called actuaries. One definition of an insurance actuarial is “An Actuary is responsible for analyzing the possible outcomes of the types of events that could potentially cause policyholders to make claims against their insurance policies.” That about says it all.

It is the job of actuarials to also weigh the likelihood litigation will take place in the case of a loss, the likelihood a policyholder will seek and obtain competent legal counsel, pursue a claim, etc. This is referred to as “risk management,” and while these people do not make decisions regarding claims, they do provide the decision makers in insurance companies with the “odds.”

On the face of it, forcing a policyholder to pursue litigation can make sound economic sense. If the claim is $50,000, the policyholder is going to have to spend a great deal of time getting their money. So, the claim gets lost, delayed, is undervalued all in a ruse to frustrate the policyholder and drive them to agree to settle for an amount much less than the actual value. It works all too often.

Payment of claims, however, is by no means an easy business. Insurance policies are complex and few policyholders carefully review their policies to assess the exclusions, omissions, etc. prior to filing a claim.

On the other hand, lawsuits have proven that ssome of the nation’s biggest insurance companies have denied valid claims in an attempt to boost their bottom lines. These companies have even rewarded employees who would not pay claims, and when all else failed, engaged in outright fraud to avoid paying claims.

Stall. Delay. Fill out more forms. Wait them out!!!

Legal case histories are full of insurance companies routinely delaying claims, knowing full well that many policyholders will simply give up. Some have gone as far as to lock paperwork away in safes. Undoubtedly, the most shameful use of delay tactics has been by long-term care insurers, who often take advantage of their policyholders’ age and ill health.

In the words of one regulator, “the bottom line is that insurance companies make money when they don’t pay claims . . . They’ll do anything to avoid paying, because if they wait long enough, they know the policyholders will die.”

Get Qualified Help!

If you or someone you know is battling with an insurance company over a claim, the best course of action is to find an attorney in your area with trial experience in insurance bad faith. This specialty is unlike all others. It is critical that you ask how many actual insurance bad faith trials the attorney has participated in to assess their experience level. If the number is low, keep looking.

It is easy to claim experience and another thing entirely to have built a career fighting insurance bad faith.

This question breaks down into two parts:

1 – is it safe in that are you sure you are really going to get the best result?

2 – is it safe in that are your details safe?

Well, in reverse order, we’ll look at the pure safety first. The answer to this is not easy. It all depends on how careful you are, where you are applying and so on. If you are applying for an online mortgage through your bank’s own website, then you are almost certainly safe.

But, if you have just turned up at some random mortgage application site, then we cannot be so certain. In all probability you are safe, but if you have replied to a spam email about low rates then suddenly the odds are stacked against you. By applying there you might find that instead of a good mortgage offer, your identity is stolen and all chances of future mortgages are gone.

Therefore, to be safe, if there is a specific bank or broker that you know about and want to use then applying via them should be secure. But a random website is not so secure.

So what about the other side of safety – being certain that you are getting the best deal on the market?

Well the problem with applying online is that again you do not always know who you are dealing with. Worst still, unless you are qualified you might not be applying for a mortgage in which you are eligible to the best interest rates and your application could end up with a surprise rate that is a lot higher.

To get the best rate that is available to you, you must not only be able to read the top 10 charts but also have an intimate knowledge of the local mortgage products and understand which of the lenders are most likely to want to offer you a good deal and where to go to get that deal.

Also, this information can change by the day, just to make it that little bit more impossible!

So you might find that the best rate that is available to you is hidden away somewhere, maybe even part way down the comparison charts, rather than in the top slots, which are not eligible to you because you aren’t paying enough of a deposit or your credit rating is less than the lender demands.

So, in summary, is it safe to apply online? Well if you go to a site that you do not know then you might have your identity stolen. Or you might find that you are not really comparing all of the mortgage offers that are available to you and end up paying more than you really ought to be paying for your mortgage.

So personally, I would always make sure that I am speaking to a professional advisor who is qualified to look after my needs and registered with the appropriate professional bodies! Contact them on the internet first by all means, but check them out before giving too much detail!

The insurance industry in Los Angeles is extremely competitive, with an increasing number of insurance companies entering the market. A number of laws strictly regulate the insurance industry in Los Angeles. It is mandatory for all the car owners to get their cars insured, regardless of the model of the car and how old it is. It is in the best interest of the car owners to have car insurance, as it offers financial relief in case of sudden accidents and mishaps. Everybody wants to have car insurance that offers maximum coverage at unbeatable prices. A good research is probably the only way in which, car owners can find a good insurance company that offers, car insurance at reasonable prices. Car owners can opt for an insurance company, only after comparing quotes offered by different Los Angeles insurance companies.

Car insurance prices are fluctuating and change from time to time. Car owners can look around for better policies at reasonable prices, before renewing their policy. Many people continue to use the services of the same insurance company for years, without trying to find out if they can get a better deal elsewhere.

Many car owners seek assistance from an insurance agent who can guide them. The make, model, and the condition of the car are some of the deciding factors, a person must consider while selecting, an appropriate car insurance. Car owners must first decide how much coverage they wish to have, before looking out for an insurance company.

There are several auto insurance websites on the Internet that provide, rates of various reputed insurance companies. Car owners can easily compare the rates of all the insurance companies before making their choice. They can specify their individual requirements on these websites, to obtain rates of only those companies that best suit their needs. They offer online car insurance policies and the latest insurance information to help car owners to make the right choice.

Car owners must verify that the insurance company has a valid license, issued by the state. Generally, car owners who have good driving records can get car insurance at a lower price.