Insurance Disputes FAQs

Insurance Law can be confusing. Having someone familiar with Insurance Law in Indiana on your side of a dispute can be very beneficial.

What are my rights if an insurance company denies my claim?
If an insurance company fails to honor its contract, you have the right to file a civil action against the insurance company. Beyond suing for a "breach of contract" you may also be able to file a tort claim, seeking damages for bad faith on the part of the insurance company.

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What types of insurance claim refusals can I try to collect from?
The denial of any type of insurance claim may subject the insurer to damages that go above and beyond what the insurance policy stated. All kinds of insurance are covered, including: auto insurance, disability insurance, life insurance, property insurance, and health insurance.

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Do damages against an insurance company found to be in "bad faith" neglect go beyond what the original settlement would have been?
Yes, in certain cases. If the denial can be shown to have been unreasonable, you might also get "consequential damages" (money you had to pay because of the denial), and "extra-contractual damages" (to compensate for mental and emotional distress caused by the claim not being honored). Also, in some cases, "punitive" may be awarded to convince the insurance company not to do the same thing for similar claims in the future.

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What does the insurance company owe me with regards to my claim?
The insurance companies must handle your claim in a prompt manner, in a reasonable manner, and in "good faith." In "good faith" means the insurance company must:

  • Pay or deny a claim within a reasonably prompt time
  • Cooperate with you regarding the claim - i.e. answer your phone calls and letters in a reasonable amount of time
  • Tell you (in writing) exactly why they are denying the claim
  • Attempt to find a basis to pay the claim rather than find reasons to deny it

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What are my obligations concerning an insurance claim?
As the insured, your obligations are:

  • To timely submit your claim for benefits (most policies say how long after a loss has occurred that you must file)
  • To prove all information that the insurer reasonably asks for (if it is entitled to it under the policy or the law)
  • To give a statement under oath concerning the claimed loss (if the policy requires it)
  • To generally cooperate with the insurance company regarding the loss (allowing them to inspect damaged property, etc.)

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For more information on insurance disputes, contact the Law Offices of B. Joseph Davis for a free initial consultation.