For policyholders, delayed insurance claims can cause great financial burden and worry, particularly if they rely on a fast settlement to satisfy pressing needs. While insurance companies are supposed to handle claims quickly, occasionally delays arise for other reasons such as backlogged claims or more research requirements. Under some circumstances, though, you could be entitled legally to sue the insurer for irrational delays. Here's how to find out whether a lawsuit is a possibility and the steps involved.
When Is A Delay Deemed Unacceptable?
Most states have rules requiring insurance firms to handle claims within a designated period. If a delay goes beyond these bounds without a good reason—such as fraud investigation, information validation, or regulatory compliance—it could be deemed unreasonable. Indices of an irrational delay could also be repeated demands for the same papers or an inexplicable lack of correspondence from the insurance. It could be time to think about more action if you feel a delay is unjustified.
Actions to Do Before Suing
It's important to compile proof of your attempts to settle the matter with the insurer before suing. Record all correspondence—including emails, letters, and phone calls—as well as every interaction. To find out the reason for the delay and demand a specific schedule for the resolution of the claim, it is also advisable to personally get in touch with the insurer either through a claims agent or customer service. Complicating a complaint with your state's insurance department also helps encourage an inquiry on the delay and usually forces the insurer to respond faster.
Bad Faith Legal Action Against Insurers
An insurer can be behaving in "bad faith" if it rejects a claim or delays payments without a good cause. Bad faith lawsuits let policyholders pursue damages should they be able to show the insurer purposefully neglected its contractual responsibilities. In these situations, courts could grant further damages for the emotional and financial effects of the delay in addition to the original claim value. Nonetheless, showing bad faith calls for strong proof that the delay was unnecessary and detrimental. Hence, it is advisable to consult an insurance law attorney.
Seeking Advice from an Attorney
Hiring an attorney focused on insurance claims will assist you through the process and help determine whether a lawsuit is feasible. To guarantee your rights, an attorney can assess your case, negotiate on your behalf with the insurer, or, should necessary, start a lawsuit. Legal assistance can be crucial in deciding whether your circumstances fit as an unfair delay, so guiding your decisions regarding compensation pursuit is important.
Conclusion
Especially if you can show irrational delays or bad faith, suing an insurer for a delayed claim is feasible. Policyholders can raise their chances of a fair resolution by completing required actions, recording all contacts, and seeing an attorney. When an insurance neglects its obligations promptly, legal action can offer a road to reimbursement.