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Insurance law helps policyholders fight denied claims

On Behalf of | Jan 23, 2020 | Insurance Law |

It often feels like insurance companies deny claims without really considering the real life policyholders who submit them. Prioritizing profits over people just seems like an industry standard. But just because it is the standard does not mean that it is right. When an insurer violates the terms of an insurance policy by denying a valid claim, insurance law gives people in Washington the option to sue.

Insurance companies deny claims for all kinds of different reasons. Although those reasons can be valid when applied correctly, they are frequently used to deny valid claims that are actually covered. But an insurance company might say that it denied the claim because of a lack of coverage. Arguing that a policy excludes coverage for specific things, even if the terms are not really clear, is not uncommon.

These companies are also quick to deny claims when policyholders make even minor mistakes, like claim or application errors. A claim error occurs when someone does not notify his or her insurance company within a specific timeline, and as such cannot make a claim on the policy. Application error refers to alleged misrepresentations or inconsistencies on claim documents, which if true nullify coverage from the policy.

Fighting the insurance company is the last thing most people want to do when faced with injuries, property damage and medical bills. Unfortunately, this is what many insurers are counting on. Insurance law makes it clear that these actions are unacceptable, so Washington residents can choose to take action if their claims are wrongly denied.