Unfair Claims Practice

Unfair Claims Practice

The practice by an insurer to refuse to pay claims it is contractually obliged to pay. An insurer may engage in unfair claims practices to reduce its costs; however, it is illegal in many jurisdictions.
References in periodicals archive ?
Every state has unfair claims practice statutes, for example, to establish administrative remedies for consumers to pursue with state insurance departments.
Some complaints are about marketing or sales techniques, premiums and rates, unfair claims practices and underwriting.
This year's biggest highlight will be an in-depth breakdown of a challenging case study that will include property insurance coverage analysis, claims management, business interruption, expert witness use and unfair claims practices.
Surprisingly, most insurance codes limit unfair claims practices penalties to direct claims.
Arguing that a self-insurer was nonetheless an insurer that had failed to settle a claim in good faith, the plaintiff then argued that the retailer was liable for damages under the state's unfair claims practices statute.
Early this year, the family won a $79 million judgment against Humana for "intentional infliction of emotional distress, breach of contract, fraud, unfair claims practices, and promissory estoppel.
Mertz expresses the ACA's support for the National Association of Insurance Commissioners' (NAIC) investigation into unfair claims practices and extends ACA's assistance to state agencies to help develop local solutions.
When the governor signed legislation giving claimants the right to sue insurance companies for unfair claims practices, the insurance companies nullified the legislation by buying Propositions 30 and 31, which the voters passed by an astonishing 2-to-1 vote.
Violation of the Unfair Claims Practices Act can result in fines for the insurer of $10,000 per violation, as well as suspension and revocation of the insurer's license.
However, the Federated Mutual court also noted that generally an insurer's litigation tactics should not be considered relevant to issues of bad faith and unfair claims practices.
A ``Yes'' vote approves, ``No'' vote rejects statutory amendments that would limit the right of an injured party to sue another's insurer for unfair claims practices and would exempt specified insurers under certain circumstances.
The most common are either that the insurance company management rewards an attitude of hard-line claim administration, which drives adjusters and examiners to the edge of unfair claims practices, or that well-intentioned but otherwise unreasonable treatment of insureds comes from adjusters who think that their job is to withhold the insurance companies' money from ostensibly fraudulent insureds and claimants.