How can I ensure my timely collection from my insurance company?
In the insurance industry, your state probably has some sort of regulation defining what acceptable conduct is. As a matter of fact the “Unfair claims Settlement Practices Act” and the “Unfair Insurance Practices Act” have been enacted by many states already.
Generally speaking, an insurer is usually required to:
properly investigate your claim
make a good attempt to process a fair, prompt and equitable settlement of claims
acknowledge your claim throughout a certain period of time
Without a valid reason, an insurer can not refuse to pay your claim.
If you think that your insurer might be violating the state’s regulations, you should definitely contact that insurer’s supervisor. If you still don’t get anywhere, file a complaint with your state’s insurance department.
A minority of states also allow you to sue an insurance company privately for violations of regulations against you individually. If you do find yourself in a dispute like this, you should know about these legal rules:
1. exclusion and limitation provisions will be constructed narrowly
2. ambiguities in the policy will be interpreted in your favor
3. coverage provisions will be constructed broadly
In most cases, you may only recover the amount of your claim if you happen to be successful in court. In other cases, you might be rewarded punitive damages and legal fees.
Here are some tips you can use when having a claim:
- Immediately notify the insurance company of your loss
- Always keep copies of any documents that you gave to the insurance company
- Get your own estimate of the loss
- Do not sign a release or a check until you are satisfied
- Keep a log of all correspondences with the insurance company (phone calls, in particular)
- Try not to exaggerate the claim
- Review your notes and policy
- Gather materials to prove your claim (receipts, etc…)
- Without legal representation, do not submit to an “examination under oath”