QuestionQUESTION: On Oct. 3, 2010 my son was involved in accident, he was covered on my policy. The monthly premium payment was due on sept. 30, 2010. I was late getting payment to agent and it didn't post until Oct. 4, 2010. A laps of 4 uninsured days. I have carried this insurance for 6 years without one claim filed and feel that their denial of claim is not in good faith. I had an attorney send a letter to the affect of denial in bad faith, and denied a second time but this time they responded with a statement of denial as well as to how the payment was made which was incorrect and inaccurate.
What are my options?
ANSWER: Hello Kevin,
Why do I feel like there is something missing here!
I will read between the lines, and then you can follow up with me if there are details that you have not covered in your original post.
You don't really state why the claim was denied. If the claim was denied because the policy had been cancelled, then the insurance company would have to show a paper trail of when they notified you of the cancellation of the policy.
I don't know what state you live in, but cancellation for non payment usually requires a warning, followed by a letter canceling the policy. I find it hard to believe that the company would cancel you for being 4 days late! Under most guidelines, they would not even have time to notify you in that time period.
You mention bad faith. If your question relates to something other than a cancellation, follow up with me on the details.
Would it be "bad faith" to deny the claim if they did not meet the requirements for policy cancellation? Probably, depending on what state you live in. All states are not the same on "bad faith" issues.
If you want more information on bad faith claims handling, insurance investigations etc, go to my web site http://SolutionsForYourInsuranceClaim.com and read some of my articles. It should be helpful to you.
Let me know if there are more details you need to provide.
Jane Pytel
http://SolutionsForYourInsuranceClaim.com
http://FloridaAutoInsuranceCentral.com
---------- FOLLOW-UP ----------
QUESTION: Jane
Over the years that I have maintained this policy,I have added and removed vehicles, each time they would send a new amended or renewal doc. for the upcoming or remaining six month term period. I had removed a vehicle (late aug.)prior to the sept. 30, term ending period. When I received the new doc. mid sept. I didn't see that it wasn't just a amended statement but a end of term statement.
In the past I had been late on payments which I paid the late fee for and had a grace period to get payment in, it didn't cross my mind that this was a end of term/termination statement and I didn't know there was no grace period provided for end of term payments or was never informed of it by the insurance that I contracted with prior to the agents that bought them out, who could not provide a policy jacket for them and I was sent a policy jacket for current provider.
I guess what I'm expecting as a steady customer for six years, with no claims filed, that they would "in good faith" provide the service they contracted to do with me, as I did with them!(by paying for a service that I hadn't utilize)
Is this a failing of my local agent and am I expecting to much to be treated as a good customer, assuming that no claims files means money coming in, as opposed to paying on claims files = money going out!
It used to be that an insurance agent would work to make it right for their customers and be there to help (as per TV adds)but that obviously not the case anymore. They get your money because the law says you have to maintain insurance and then they turn their backs on you when you need help, laughing all the way to the bank!!
I guess there is the paper trail you were looking for, yes they provided information they deemed necessary hidden within all the documents they sent.
I guess it too much to expect to believe they have interest in mind other than there own pockets books!
Thank you
KT
Answer Hello Kevin,
Very sad. Technically, yes, your policy had been cancelled or non-renewed. That being the case, you would not have had coverage for the date in question.
Unfortunately, you can never assume that the insurance company - or the agent - will necessarily be there to help you. You have learned the hard way to be vigilant.
I'm sorry for your loss.
Jane Pytel
http://SolutionsForYourInsuranceClaim.com
http://FloridaAutoInsuranceCentral.com
