Many people do not realize just how heavily regulated insurance companies are, and the fact that they, as customers, have some options when it comes to ensuring that their rights are protected. As recently highlighted by the American Institute of CPAs, it is important to know what your insurance company can and cannot do—whether you are dealing with auto insurance, life insurance, homeowners insurance, or any other form.
The Law in Louisiana
In Louisiana, the Unfair Claims Statutes & Regulations governs what insurance companies can and cannot do. Specifically, it regulates insurance trade practices and unfair methods of competition and/or deceptive acts and practices in the state of Louisiana. Some of the methods and acts that it defines as unfair or deceptive include:
- Misrepresentations and false advertising of insurance policies: the company selling you insurance cannot inform you that the policy does or does not do something when the opposite is true. This applies to advantages, conditions, terms, dividends, surpluses, etc. pertaining to a policy; and
- Delaying the investigation or payment of claims: in fact, failing to pay a settlement within thirty days after an agreement is reduced to writing, or failing to pay a claim within sixty days after receiving satisfactory proof of loss, constitutes a breach of the insurer’s duties under state law. This includes trying to delay paying a claim by requiring unnecessary paperwork from a claimant.
What about Disagreements?
While your insurance agent or broker (if you have one) can be very helpful in resolving any disputes with an insurance company, the state commissioner of insurance also has the ability to examine and investigate any and all insurance practices. Each state (including Louisiana) has a state insurance department that can investigate policyholder complaints. To this extent, the state can fine and/or reprimand the company.
If you are at the beginning stages of an issue or dispute, it is important to document any and all steps that you have taken to try and resolve the issue—including any letters you have written to the company or phone calls you have made—in order to provide these to the commissioner and/or any attorney you may need to hire to assist you with the dispute, arbitration, mediation, or lawsuit. However, it is important to note that, in general, it is in the interest of the insurance company to settle disputes rather than move forward with litigation, and your attorney can also assist you with facilitating a settlement.
Contact Us Today
The law firm of Harrell & Nowak has a long history of handling insurance disputes. Specifically, Shirin Harrell and Eric Nowak were appointed to Plaintiff’s Steering Committee for all Hurricane insurance cases against State Farm and Allstate in Section F, United States District Court for the Eastern District of Louisiana. Customers often have valid claims that these companies are using deceptive business practices, and we are prepared to assist you if that is the case. Contact us today for a free consultation.