How To Respond To Denial of Insurance

An insurance company could have a good reason for issuing that denial. The potential claimant should take the time to discover the reason behind the insurance company’s unexpected and disquieting action.

Possible reasons for denial

Some employee of the insurance agency has made an oversight. For instance, the same agency could have claimed that the policyholder has missed some of the payments on the purchased policy.

A lack of coverage: The terms in the purchased policy were more limited than the policyholder had realized.
Bad faith: The insurance company has used an unfair tactic to cheat a given claimant or policyholder.

How to appeal for reconsideration of a denial

Collect the relevant documents and other evidence and then you need to approach the insurance company with those same documents, and with that evidence. Be sure that the collected documents include the following:

• Denial letter
• A document that gives the reason for the denial
• Your insurance policy
• Proof of payments made to insurance company
• Accident or injury reports

The ability to get a reconsideration of the denial increases the chances for a reversal of the ruling, as per personal injury lawyer in Edmonton.

What steps could a policyholder take if he/she were not able to get a reconsideration of an insurer’s decision to deny coverage?

The policyholder’s first step should be that of contacting a knowledgeable attorney. Then the policyholder should consult with that same attorney. Certain lawyers have learned how to deal with those insurers that have refused to cover a policyholder’s reported damages. Those same lawyers stand ready to help the denied policyholder in an effort to sue the company that has refused to grant deserving coverage.

Acting on behalf of the denied policyholder, the attorney could file a personal injury complaint. The attorney’s training and experience should ensure preparation of a satisfactory complaint. In other words, the court should accept that same complaint.

Then arrangements must be made for serving a copy of the complaint on the defendant, the insurer. The insurer then has a chance to respond. Some insurers respond by moving for the case’s dismissal.

A judge decides whether or not the case can be dismissed. If it is not dismissed, then the process moves on to the stage of litigation. That would mean that the claimant-lawyer team could proceed with the lawsuit.

What to remember if suing for bad faith

Insurers cannot do whatever they want. The government strives to control the actions of the different insurance companies. In that way it works to protect the rights of both policyholders and claimants. That protection does not end if a policyholder has chosen to pursue a lawsuit, in response to an insurer’s demonstration of bad faith actions.