What are some of the rules that my insurance company is required to follow?

Generally, all insurance companies are required to abide by the following rules:

  • Your insurance company must timely accept a claim.
  • Your insurance company must acknowledge receipt of your claim, start an investigation, and give you a list of things it needs to investigate your claim. Depending on the state, there are sometimes deadlines that the insurance company must comply with.
  • Notify you in writing of the acceptance or rejection of the claim. Again, depending on the state, there may be time deadlines that the insurance company must comply with.
  • In most states, an insurance company must pay the claim within a certain number of days after it has accepted, in part or whole, the claim.
  • All insurance companies must adhere to agreements set forth in the insurance policy. By way of example, if the policy requires the payment of replacement value then the company cannot simply pay actual value.
  • Your insurance company must act in good faith in everything that it does regarding your claim. By way of example, this means that your insurance company cannot lie to you about the value of your claim or misrepresent the type of coverage available under your policy.
  • Your insurance company has an obligation to fairly evaluate your claim and loss. This means that they are not allowed to hire disreputable, low-ball adjustors to significantly under value your loss.
  • Your insurance company must comply with any state or federal law regulating its business practices.