Insurance companies have their own trade secrets and tricks they use whenever they want to deny paying their insured party.

Denying Claims

In an attempt to increase their bottom lines, insurers can refuse to recognize claims. They seek to reward the employees that successfully deny their insured’s claims and even go as far as terminating employment for the employees that fail to do so. On the extreme, they will even resort to fraud as a means to avoid paying the claim whenever their efforts to deny does not deliver.

Delaying until the Policy Holder’s Death

There are also instances where the insurance companies will buy time, delaying and hoping the policy holder will give up the chase. They achieve this by hiding papers as a delay tactic. Particularly, when they know that the insured is far gone in age or that he is suffering from an illness, insurers will delay compensation with the hope that the policyholder will die. It is clear that only the insurance company benefits whenever a damage is not compensated, which is why they strive to ensure this happens.

Confusing Policyholders

Using complex documentation that is not easy to understand and interpret is another trick used by insurance companies. This can cause the holder to sign up for risks they do not fully understand. For instance, the company may use using anti-concurrent clauses as a means to escape from paying claims presented by the policyholders. So, while the policyholder thinks they are safe, it turns out that a particular clause obscures them.

Discrimination Based on Credit Worthiness

This happens when insurance companies use the policyholder’s credit score as a means to determine the amount of premium they should pay. Sometimes they even use this report to completely keep the individual from being insured. This mainly affects senior citizens who hold little credit and individuals facing financial challenges for any reason whatsoever. In summary, they will deny fiscally responsible people that would initially pay their premiums in cash from being insured simply because they lack credit history.

Neglecting the Sick

Driven by their selfish desire to minimize costs, insurance companies have resolved to cancelling policies in either a retroactive or rescinding sense, for policyholders whose health conditions have become too costly to treat.

Cancelling from a Call

Policyholders often hesitate to pursuit small claims on their property insurance because they fear that the insurer will increase their premiums. However, insurance companies may decline renewing a policy on an account when the insured only went as far as inquiring about the possibility to make a claim. The insurer will recognize an inquiry made over the phone as being a claim, and from this point onwards, they will strive to drop the insured.

Using Your Words Against You

Through insurance adjusters, insurance companies will seek to use information you provide to them to turn the tables from your favor. “I’m fine” is one of the words that can be used against you when asked how you are.

It is important to consult professional help from an independent legal representative who is not tied to the insurance company. Remember this, adjusters are not your friends. Contact us here for any legal questions or concerns you may have.