Insurance is a heavily regulated business, which consequently has resulted in the creation of a vast number of insurance laws. Most of the regulations pertain to the business of insurance. Some, however, directly affect what Vancouver Insurance Lawyers categorize as the fundamental aspect of insurance; what is covered under an insurance policy and what is not.
The Business of Insurance
The basic concept of insurance is to allocate the risk of a loss from the individual to a larger group of people. Each individual pays a premium that goes into a pool from which losses are paid out. Much of the regulation is to ensure these pools are sufficiently funded and well managed to meet the insurance companies’ obligations.
The peace of mind an insurance policy provides the policyholder can be suddenly shattered when a claim is denied. Although it may seem obvious, what is covered in the policy is only what is contained in the written contract of insurance. Vancouver Insurance Lawyers can explain that if a policyholder files a claim, the insurance company has only two duties:
- The duty to promptly and fairly investigate the claim, and
- Pay the claim if it is valid.
Denial of a Claim
In determining the validity of a claim, the insurance company is held to a duty of good faith and fair dealing. If a claim is denied, the issue a Vancouver insurance lawyer will investigate is whether the claim should have been paid but was improperly denied.
Other Acts of Bad Faith by Insurance Companies
The bottom line for many insurance companies is that they make more money by paying out less in claims. Other than an outright denial, this can take the form of unreasonably delaying the payment of benefits, making low ball offers of settlement or failing to settle a claim within the limits of the policy. Vancouver Insurance Lawyers can cut through all this, and help make the odds better when you are dealing with the insurance company
Contact a Vancouver Insurance Attorney for Legal Advice
If you are dissatisfied with an insurance company’s response to your claim, it is important to understand your rights. For any questions, call the Law Office of Loren Scott Etengoff at (360) 693-2919.