The Expert Podcast

…If you're an insurance company this is why you don't play games in paying claims If you have a valid claim against you. And you don't pay a properly It can snowball quickly Here's a case where there was an insurance claim of $500,000 And actually it started out at two 50. And because the insurance company didn't. Act properly They ended up paying millions of dollars. To the victim. How did all this work? Well this insurance company had a claim against it for $250,000 And after failing for 400 days more than a year. To give its policy limit basically pay the claim. Then the insurance company took an eight and a half million dollar hit to its bottom line to settle a lawsuit. Because they didn't. Pay the claim initially. This is an extremely important lesson for insurers. To properly handle the claims process most states have in plays a very specific A…set of regulations for how to handle claims in good faith. Certainly you want to investigate a claim to make sure it's legitimate to make sure you know all the facts, but if you drag your feet and if you have a claim that. Is obviously. Valid on its face and you've done proper due diligence in a reasonable amount of time And you don't pay that claim. It can snowball out of hand very quickly. Paying that two 50 upfront would it eliminated? Almost $10 million eight and a half nine depending on how you count it Plus there's probably legal fees you have to pay. There's probably penalties you need to pay And your insurance license might be at stake because now somebody can file a complaint against you. For bad faith in claims processing.