When Texans take out an insurance policy, they do so to protect themselves, their loved ones, their property and their businesses. However, it is unfortunate that some insurance companies do whatever they can to try and avoid paying when a policyholder files a claim. In some instances, they are using underhanded or outright illegal tactics when doing so.
For people in this situation, they might not know where to turn. Already worried about the financial ramifications from the issue that led to the claim in the first place, they are not sure of their recourse to try and hold the insurer accountable and collect on the policy.
In these instances, the insurer might use unfair settlement practices or misrepresent the insurance policy. There are laws in place to address this. If a person or entity believes the insurer is behaving in this way, it is important to have advice on how to proceed.
What would constitute unfair settlement practices?
There are many ways an insurance company can engage in unfair settlement practices. If, for example, the policy holder was under the impression that their coverage limit was at a certain level and then when they filed a claim, it was less, this would potentially constitute unfair settlement practices.
It is also an unfair settlement practice for the insurer to refuse to offer a prompt, fair and equitable settlement when there is a viable claim for which the policyholder has the right to recover compensation. The policyholder must receive a comprehensive explanation as to the details of the policy, why the claim might be denied or a settlement was offered.
The insurer must inform the policy holder within a reasonable time as to whether the claim will be affirmed or denied. They ae also required to provide a reservation of rights. In short, the insurance company is expected to live up to its obligations based on the policy and not try to find reasons to deny the claim when the policy is clear in its intent.
Policy misrepresentation can also be a problem
Insurance companies might also try to avoid paying through policy misrepresentation. Some ways in which they do this include making untrue statements about the facts. If they did not tell the policyholder about material information, withheld information, or did not disclose all the necessary information, this could be a form of policy misrepresentation.
Companies might try to take advantage of people by using fine print or complex terms that do not clearly detail what the policy covers. They need to be held accountable for this type of behavior. If a person thinks their policy is not being interpreted accurately, it is important to have help in making sure the insurance company does not get away with this type of behavior.
Professional guidance can navigate complex insurance issues
Making an insurance claim should not be difficult with people worrying about whether the company is going to try and use illegal strategies to keep from paying. Unfortunately, many companies delay, deny, misrepresent or offer unfair settlements. Policyholders sometimes make the mistake of thinking there is nothing they can do about it.
There are ways to make sure insurers are not behaving inappropriately or illegally. When there is suspicion that an insurance company has partaken in these practices, it is wise to contact professionals who are experienced in all types of insurance claims to recover for what they have lost.
