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Tactics that sometimes precede bad faith insurance claim denials

On Behalf of | Jun 15, 2024 | Bad Faith Insurance

When wading through the complex waters of an insurance claim, it is crucial to be vigilant for signs of unfair treatment by the insurance company.

Denying claims without a valid reason is a bad-faith insurance practice. Although not lawful, it remains a widespread problem in Pennsylvania. Fortunately, you have the right to seek a remedy.

Signs that may indicate an imminent denial

Some of the tactics insurance companies use before issuing a decision could mean they do not want to pay the claim. Here are some examples to watch out for.

Continuous or excessive delays. If an insurance company consistently delays the claims process without a clear reason, it could be a tactic to test your patience and resolve.

Unreasonable documentation requests. An insurer asking for an excessive amount of documentation, some of which may seem irrelevant to the claim, could be a strategy to create obstacles.

Lack of communication. A lack of updates or responses during the claim deliberation process can be a red flag. Insurers should keep you informed throughout the process.

Shifting blame. Attempts to blame the policyholder for errors or issues related to the claim can be a sign of bad faith. It’s important to review all correspondence carefully for such tactics.

Citing multiple policy parts. If a denial references several different parts of the policy, especially without clear explanations, it could indicate an attempt to overwhelm the policyholder with complexity.

It may be wise to seek legal counsel if you encounter these signs during the claims process. Your representative can take steps to see that your insurance claim is handled fairly and the insurer delivers on its promises.