Failure to Pay a Life Insurance Claim and What You Can Do

An insurance company makes money when theof contract with the insured. Then, some action may
company collects more in premiums than it pays outbe required under the insurance policy. These failures
in claims. They have initiative to delay payment ofmay include: the insurance company failed to pay
claims while also denying other claims. Insurancelosses, failed to pay a judgment, or failed to defend
companies may be regulated, however; consumersthe insured.
sometimes must retain legal counsel to enforce theirThe insured may bring an action against the insurance
contract rights under a policy issued by one of thesecompany in many circumstances, such as: a tortuous
companies.breach of covenant of good faith and fair dealing,
If the insurance company for someone who hasinterference with business relations, or intentional
caused you personal injury or a UIM carrier refusesinfliction of emotional distress. The insured may bring
to pay a practical value of your claim, you maylegal action against an insurance company who
consult with an attorney about this case. You needmisrepresents them, or fraud.
to be expedient in dealing with your claim.Generally, the insured, must file proof of loss and /or
An insurance contract is normally a contract wherebynotice of loss first with the insurance company
the insurer undertakes to indemnify or pay thebefore bringing any legal action. If successful, the
insured a particular or specified amount of money orinsured may recover both prejudgment interest and
benefit upon loss or determinable risk contingency.attorney fees.
An insurance binder is a written document providedIf your insurance company denies your claim or you
to the insured that warrants the insurer to payhave problem with an insurer, have an attorney
insurance if a loss occurs before the policy is issuedevaluate any potential claim you may have. The
or an application for insurance is denied. Thisclaims against insurance companies must adhere to
application for insurance may be accepted by eitherstrict guidelines by the law. It is crucial to contact
express statement or acts of conduct of theyour lawyer if you feel that you may have a claim.
company.Many times, you will be given a free consultation with
An insured may retain an attorney and, if required,legal counsel.
bring a legal action against the company for breach