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Deny Till You Die: Insurance Company Practices Exposed

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The friendly face of your insurance company is the people who sell you the insurance. If you think all people at your insurance company are friendly, you may not have had to make a claim.

There are many honest, sincere and helpful insurance company representatives. This blog is not aimed at them, but there is a significant tendency among insurance companies to prosecute unfair claims practices. The reason for this is not hard to find: every claim denied goes to the bottom line of profit.

An association of plaintiff injury lawyers has released a new report condemning some insurance company practices. Some of the tricks of the trade include rewarding employees who successfully deny claims, denying claims until the client dies, and “cancelling for a call” – making an inquiry over the phone is treated the same as a claim. As stated by one regulator:  

The bottom line is that insurance companies make money when they don’t pay claims.

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