Duration for payment of claims
Every state has its own regulation which defines acceptable conduct for paying up insurance claims. While some states have enacted an "Unfair Insurance Practices Act" or an "Unfair Claims Settlement Practices Act", for others the regulations may be found in a broader law that encompasses all trade practices.
Typically speaking, an insurer is required to:
- Admit your claim within a certain time limit, which is usually 15 days,
- Investigate your claim on an urgent basis
- It should do its best to process a timely, fair, and equitable settlement of claims in which liability is reasonably clear.
Here are a few tips which may come in handy when dealing with an insurer about a claim.
Before you buy the policy:
- Ensure that you understand thoroughly what the agent is explaining about different and potential insurance coverage.
- Read the proposed policy carefully including the fine print to familiarize yourself with important terms, such as deductibles, exclusions, and limitations
- Complete the application form honestly and thoroughly
Ensure that you read the policy thoroughly before you make a claim to eliminate surprises that may lead you to get less than you deserve.
When you have a claim:
- Read your policy again
- Notify the insurance company of the loss immediately
- The claim should be honest and without hyperbole.
- Keep a log of all correspondence with the insurance company whether in the form of telephone calls, e-mails, letters etc. Also, keep all copies of documents that you give to the insurance company for your reference.
- Ensure that you have enough proof to claim damages. Determine your own estimate of the loss
- Do not submit to an "examination under oath" without legal representation
- Never sign a check or release until you are satisfied it is fair
Having insurance is extremely vital in today's fast paced and hectic lifestyle. With several insurance agents and brokers in the market today, ensure that you avail of cheaper auto, health and home insurance for a more secure future.