QuestionQUESTION: Improper delay in settlement of an underinsured motorist accident claim. Accident was in 2005 (california),the at fault driver's insurance paid his limit of $15K in 2007. My knee surgery alone was over $50K. No arbitration date yet, could be May??? What is the "normal" length in settling a claim with a $100K policy limit? My attorney already stated in a letter (July 2010) that there is substantial evidence of bad faith (Brehm v 21st Century...carrier has an obligation not to delay or deny payment of a claim under uninsured and underinsured motorist coverage. (2008) 166 Cal.App.4th 1225. Hartford does not have the right to "put the claimant to her proof". Any suggestions??? Thank you.
ANSWER: Hello Jamie,
You're asking me a legal question.
However, I can tell you that from an insurance standpoint, any claim - regardless of value of the claim - should be settled immediately following a prompt, fair and impartial investigation. An insurance company cannot use delay tactics to devalue a claim, nor can they deny a claim without sufficient evidence to deny it.
Unfortunately, particularly with large UM claims, my experience has shown that too frequently insurance companies will not investigate at all, but will simply utilize delay tactics either to lowball the claim or to force the insured to file suit. They won't deny it, because they know they cannot support that denial. All of these behaviors are unethical and violate fair claim settlement standards. While I am not familiar with the laws in CA, most all states are similar with regard to fair claims handling. From your account, your attorney is right. It appears, in my opinion, that there is a very strong suggestion of bad faith. This, of course, opens up a whole new arena. You'll have to rely on your attorney for that!
Hopes this helps. I wish you well.
Jane Pytel
http://SolutionsForYourInsuranceClaim.com
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QUESTION: Where can I look to find out what the average length of time is that it takes to settle an underinsured motorist claim? Where can I find more information on "fair claim settlement standards"? Thank you again.
AnswerJamie ...
There is no such thing as "the average length of time it takes to settle and underinsured motorist claim". At risk of sounding cynical, I would sum it up in a few words ... "the more money involved, the longer it takes to settle".
Your attorney is on the right track.
I have a section on my website and in my ebook which details fair claim settlement standards.
http://SolutionsForYourInsuranceClaim.com
Jane Pytel
