Insurance coverage is mandatory in certain scenarios. Drivers generally need to carry liability coverage in case they cause crashes. Homeowners usually invest in policies that protect them from liability and offset their costs if they have to repair their homes due to crime or inclement weather.
People hurt due to unsafe conduct in traffic or dangerous property conditions may have the right to file an insurance claim. Unfortunately, a professional processing a claim may not handle the matter fairly and quickly. In some cases, insurance professionals drag out the claim settlement process in the hopes of deterring the claim or pushing a person or business into accepting an unfairly low settlement.
The law limits claims processing
The longer that insurance companies can delay payout on a large claim, the greater their chances of avoiding the payout entirely. The law carefully regulates insurance investigations and claims to motivate insurance companies to uphold their policies in good faith.
Unreasonably denying claims may constitute bad faith insurance practices. Inappropriately long processing delays can also constitute a legal violation.
With exceptions for complex cases where insurance companies have already communicated about the need for a longer investigation, insurance providers generally only have 30 days to investigate the claim and make a determination regarding its validity. Inappropriately long investigations constitute a form of bad faith insurance and could potentially lead to litigation.
Those seeking personal injury compensation and unable to secure a settlement from an insurance company may need support. Learning more about the law and reviewing policy documents with a skilled legal team can help people navigate a complex claim as effectively as possible.
