Common claim myths

AuthorDavid Frangiamore
By Kevin M. Quinley, CPCU, AIC, ARM, Senior Vice President, Medmarc
Insurance Group, Chantilly, VA. and updated by David Frangiamore, Esq.
§1501B Myth #1: “Threatening to File Suit Will Soften Adjuster’s Position”
§1502B Myth #2: “Insurers and Adjusters Use ‘Three-Times-Specials’ Formula”
§1503B Myth #3: “It’ll Be More Expensive to Defend Than to Settle”
§1504B Myth #4: “Time Limit Demands Usually Expedite Adjuster Responses”
§1505B Myth #5: “Adjusters Receive Bonuses Based on What They ‘Save’ Off a Claim”
§1506B Myth #6: “Adjusters Cannot Evaluate Cases as Well as Attorneys”
§1507B Myth #7: “The Insurer Denied My Claim; However, I am Conf‌ident That the Claim Is Covered.
If I Ask the Insurer to Reconsider, I Probably Will Not Have to Sue to Get Coverage”
§1508B My th #8: “A Wrongful Denial of a Claim Will Automatically Subject the Insurer to Punitive Damages”
§1509B Myth #9: “The Insurer Must Have a Reasonable Basis for Denying the Claim Because It
Issued a Long Letter Explaining That the Claim Is Denied”
§1510B Myth #10: “I Was Treated so Badly by the Insurance Company That I am Certain a Lawyer
Will Take My Case on Contingency”
§1511B Myth #11: “If I Sue the Insurance Company, It Will Teach Them a Lesson and They Will Not
Do the Same Thing to Other People”
§1512B Myth #12: “I Lost the Insurance Policy Copies That Prove I Have Been Insured by This
Insurance Company for the Last Twenty Years, and the Insurer Is Required
to Have Saved Copies”
§1513B My th#13: “ The Adjuster Working on May Claim Is Probably Well Trained and the Insurer
Would Not Use the Adjuster if the Adjuster Did Not Know What He/She Was Doing”
§1514B Myth #14: “The Adjuster Working on the Claim Is Directly Employed by My Insurance Company”
§1515B Myth #15: “My Claim Is Clearly Covered and the Insurer Has Not Asserted Any Policy
Limitations, Defenses or Exclusions; Therefore, I Should Expect the Claim to Be
Paid Within the 30-Day Period Prescribed by Most Insurance Regulations”
§1516B Myth #16: “The Insurer Says the Policyholder’s Misconduct Related to the Claim Was
Intentional and Therefore They Are Justif‌ied in Denying My Claim”
§1517B Myth #17: “ The Bigger and Richer an Insurance Company Is, the Higher the Likelihood that It
Will Promptly and Fully Pay My Insurance Claim”
§1518B Myth #18: “The Insurance Company Admits That It Made a Mistake When It Did Not Pay My
Claim; However, the Insurance Company Claims It Will Never Be Held Liable for
Bad Faith Due to a Mistake”

To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT