Although most insurance companies handle applications, policy changes and claims in a fair manner, some consumers will encounter unfair insurance practices. A few insurance companies engage in unethical or illegal behavior when dealing with policy holders and claimants. If you have been treated unfairly by an insurance company, it is important to report the insurer. Fortunately, state insurance departments act in the best interests of consumers, so reporting an insurance company is an easy task.
Instructions
1. Locate the contact information for your state's insurance department. Each state has a regulatory agency that oversees the operations of insurance companies that do business with state residents. You can find the website address for your state's insurance department through the National Association of Insurance Commissioners website. This site also offers helpful tips for dealing with individual insurance companies.
2. State insurance regulatory websites offer complaint forms you can complete and submit. You will fill in pertinent information to support your complaint, such as the date of the incident, your policy number and the nature of the disagreement. Some states allow you to submit complaint forms online, while others require consumers to submit the forms via mail.
3. When completing the complaint form, be objective. Avoid harsh language and unreasonable demands. Although you may be upset by an insurance company's action, demonstrate that you can approach the dispute rationally and reasonably. This will greatly improve your chances of obtaining a satisfactory resolution
4. Allow your state's insurance department at least 30 days to review and investigate your complaint. The regulatory department will send a copy of the complaint form to the insurance company's consumer division. A division representative will review the complaint form and issue a response to the insurance department. The department can then properly assess the claim and issue a decision based on information provided by both parties.
5. After the insurance department has reviewed your complaint and the insurance company's response, you will receive a letter stating the insurance department's position. Generally, if the insurance department believes the company is at fault, it will direct the company to make it right. Remember that the purpose of insurance is indemnification-putting you back in the same position as if the loss had never occurred. It is not designed for personal or financial gain. Thus, the insurance department will not direct the insurance company to pay you more than you are entitled to under your policy.
Tags: insurance department, insurance company, insurance companies, your state insurance, complaint form
