5 Things Insurance Companies Don’t Want You to Know
Every year, the average American spends thousands of dollars on insurance. Whether it’s medical, homeowners, automobile, or any other sort of coverage, the vast majority of people do not have to deal with filing large claims. This means most people have very little experience in dealing insurance agencies…and the companies are aware of this.
Unfortunately, complicated business jargon, deliberately placed delays, and purposely underestimated losses run rampant throughout the industry. (Read “A Haunting Truth” to find out about a recent incident that exposed the dark side of the business.) Realistically, insurance companies are businesses, which means profitability is the final goal. By engaging in delays, lowballing, and outright wrongful claim denials, insurance corporations are able to maintain a high profit margin while the policyholders carry the brunt of the burden.
You may not know how to deal with bad faith insurance dealings, but Millin & Millin Attorneys know exactly how to fight for your just due. Our compassion, dedication, and personal attention will get you the results you deserve.
We also want you to be familiar with the principles of insurance laws in order to protect yourself. By finding out what your rights are, and what your policy covers, you’ll be able to level the playing field.
So here are 5 things you insurance companies probably don’t want you to know.
- Seek free legal advice from insurance law experts so you know your rights before it’s too late.
Bad faith cases have to be thoroughly investigated to evaluate the likelihood of their success and so law firms are often willing to provide free legal analysis to the insured to validate whether or not the case should be filed. Use this opportunity to receive some free advice from an expert in the field.
- If your insurance agency is trying to rescind (invalidate) your coverage after you
have made a claim, they may be violating the law.
Some insurance companies may attempt to deny a large claim by accusing you, the policyholder, of trying to defraud them under the pretenses of perjury. Because it is understandably easy to skim through a policy application and answer questions quickly, though honestly, you may have forgotten minute details about every hospital visit.
Insurance agencies like to utilize this often unintentional oversight by policyholders to scare claimers away. However, if you are innocent of any wrongdoing and did not purposely commit perjury don’t give into such tactics.
Regardless though, remember to read all policy applications thoroughly and with an eye for incongruities in the writing. Also, do not simply fall over when insurance companies attempt to eliminate your policy after a claim. If you were being honest on your application then you have no reason to doubt the legal bindings of the policy, and with the right legal team, you can prove that the insurance company acted in bad faith.
- Insurance companies must act in good faith in their interpretation of policies and payment of claims.
It is illegal for an insurer to engage in biased delays, underpaying, or to utilize deceptive tactics in claims handling. The insured should not have to hire an attorney to be paid what they are owed. Insurance agencies must always be just and fair with their policyholders and any violation to these legal expectancies of good faith exposes the carrier to significant legal damages.
- Misrepresentation of coverage at the time of a policy purchase means the insurance company must honor the coverage made by the selling agent.
Insurance agents are not out inherently out to get you. They’re simply doing what their position entails, which is selling policies. The inconvenient truth is that the agents may not be as fully educated about the policy they are selling as they would have you believe. Yes, they’ll know what is covered, but that doesn’t necessarily mean they know what isn’t.
Furthermore, the agent usually won’t be able to show you a copy of the exact policy you are getting, as many companies send those out by mail after the policy has been purchased. So when you are in the initial stages of acquiring insurance, make sure to have the agent write down as many details of the policy as possible, and try your best to leave the office with some legally binding forms so that you aren’t left out on the dark about your coverage.
- If your insurance company illegally denies your claim, or breaches their duty, and you sue to recover your just due, then the company must pay for your attorney’s fees.
If your insurer argues that they would be offering you more to settle than what the net worth of your claim is after legal fees, then recognize they are attempting to underpay you. By engaging in such conduct they are not allowing the policyholder their legal right to be made whole. Watch out for this scare tactic and realize that insurance companies must pay for your legal costs should your claim ultimately lead to arbitration.
Making an insurance claim can be outright confusing, especially if it’s your first time going through the process. Sadly, many insurance companies will not make it any easier on you, and may have you run through hoops just to receive the coverage that is rightfully yours. Don’t worry though.
Millin & Millin PLLC are more than capable of advocating for you and helping you find the peace and justice you deserve. When you choose Millin & Millin PLLC, you are never alone in the process.
Find out how we can help you by scheduling an appointment with us today here or by giving us a call at 956-631-5600.