6 min read time
Summary
If the insurance company is stalling in your claim, you should do the following: review your policy for information on timeframes, document everything between you and the insurance company, stay consistent in contacting your insurance adjuster, request a written explanation for the delays, file a complaint with the insurance department, and seek legal assistance.
Table of Contents
What Can You Do If an Insurance Company Is Stalling?
If you are dealing with a stalling insurance company or unnecessary delays, you begin to feel frustrated or tempted to take the insurance company's initial lowball offer if given one.
However, it's crucial that you don't do either of these or anything rash, as there are several steps that you can take to beat insurance claim delays and come out with a successful personal injury claim.
#1 Review Your Policy
Review your insurance policy and try to identify key information, such as the claims process timeline, which will contain information regarding how long the insurance company has to acknowledge, investigate, and resolve your insurance claim and the insurance claims filing requirements, which will cover all required documentation needed to file an insurance claim.
In addition, check your insurance company policy for any exclusions or limitations that may apply to your claim submission to avoid further insurance disputes.
#2 Document Everything
When the insurance companies stall, it's crucial that you begin to keep detailed records of everything involved in the insurance claim process.
Key details you should keep records of are:
- Emails
- Phone calls
- Letters
- Statement or promises made by the insurance adjuster
These documents are invaluable as, in the situation where there is an insurance dispute, the documents can be used to prove that the insurance company acted in bad faith and intentionally delayed your insurance claim.
#3 Consistently Contact Your Insurance Adjuster
Insurance companies delay claims in hopes that policyholders start feeling frustrated and give up on processing claims.
It's vital that you do not fall victim to the insurance delay tactic of purposefully stalling and stay on top of your insurance claim by setting regular follow-ups, asking for updates, and communicating through all available channels such as calls, emails, and mail.
If the insurance company regularly receives communications from you, they will eventually have to make progress in your claims process.
#4 Request a Written Explanation for the Insurance Claim Delays
If you believe the insurance company is delaying or using stalling tactics, ask them for a written explanation outlining a valid reason for the delays in the claims process.
#5 File a Complaint with the Insurance Department
If directly working with the insurance company does not resolve the insurance dispute, you can file a formal complaint with the state insurance department.
The involvement of a regulatory agency such as the state insurance department may prompt the insurance company to move forward in the claim process to avoid paying fines or damaging their reputation.
#6 Seek Legal Assistance
To ensure your claim is filed in a timely manner and is handled fairly, you may contact a personal injury attorney to assist you in potential legal actions.
Having an experienced lawyer on your side can be extremely beneficial as they can send a formal demand letter on your behalf, file a bad faith claim against the insurance company, and ensure a fair settlement, which can mitigate any financial strain you may have already suffered.
If you wish to have a Las Vegas car accident attorney handle the insurance company involved in your personal injury lawsuit, call (702) 566-3600 today for a free consultation.
How Long Can an Insurance Company Stall My Claim?
Legally, insurance companies can only delay your claim for a certain amount of time.
Each stage of the car accident claim process has specific time constraints.
Acknowledgment of Claim Timeframe
When filing insurance claims, the insurance company must acknowledge it within 20 working days.
In addition to acknowledging the claim, the insurer must provide you with all required claim forms and instructions needed to comply with the policy.
Approval or Denial of Claim Timeframe
Once a claim is fully submitted and proof of loss is displayed, the insurer will have 30 days to approve or deny your claim.
If, during this stage, the insurance company can request additional time or information to make a decision, they must notify you within 20 days of initially receiving your claim.
In addition, if the insurer requests more information or more time to make a decision, they must provide updates at least once every 30 days until a conclusion is reached.
Payment of an Approved Claim Timeframe
When a claim is approved, the insurer must pay the claim payout within 30 days.
Can I Sue an Insurance Company for Purposely Stalling?
Yes, if your insurance company utilized stalling tactics in your claim, you can sue them for acting in bad faith.
What Is Bad Faith
Bad faith is any practice considered unfair or deceptive, and under NRS 686A.310, insurance companies must act in good faith.
Examples of bad faith include:
- Unreasonable Delays: If the insurer does not take prompt action to acknowledge, investigate, or settle your insurance claim within the legally mandate timeframe, they may be acting in bad faith.
- Lowball Offers: When an insurer avoids making a fair payout by offering a policyholder a settlement offer that is significantly lower than what they're entitled to.
- Falsification of Policy Terms: Giving false or misleading information about your coverage or rights under your policy.
- Failure to Communicate: The insurer continues to ignore calls, emails, and letters requesting information regarding a claim's status.
When Should You File a Lawsuit Against an Insurance Company for Bad Faith
You should file a bad faith lawsuit against an insurer if:
- The insurer violated laws outlined under NRS 686A.310
- The insurer failed to meet legally set deadlines without cause
- You have suffered financial losses
- There is clear evidence that the insurer is acting in bad faith
If you seek to file a bad-faith suit, contact our Las Vegas car accident attorneys for a free consultation in which you'll receive a case review in which we'll cover how we can utilize our negotiation skills and ability to gather valuable evidence to ensure a fair outcome for you and your family.
Reasons Insurance Companies Stall in Insurance Claims
Insurance companies stall claims for both legitimate and non-legitimate reasons, with some of the most common being:
- Missing Documentation: In order to properly file a claim, insurance companies require extensive paperwork to be submitted, and if documents such as police reports or medical records are missing, they may put that claim on hold.
- Extensive Investigation Required: Some claims, such as complex car accident claims, may require in-depth investigation to verify, which could lead to delays.
- Disputes Over Liability: An insurance dispute over liability may arise when the insurance company argues that the policyholder is partially or fully at fault. This could result in delays and even a denied claim.
- Deliberate Stalling: Sometimes, stalling may be done intentionally in hopes of claimants accepting a lower-than-fair settlement or abandoning their claim altogether.
If you suspect the insurance companies of purposely delaying your personal injury case, it's highly recommended that you contact an attorney to ensure a timely resolution.
What Are Common Insurance Company Delay Tactics
When insurers seek to delay a claim, they may deploy various tactics that may be successful against those who are uninformed or without the protection of an attorney.
Multiple Requests for Documentation
Insurers commonly delay by requesting the same documentation multiple times or asking for unnecessary documents.
To combat this tactic, you should always keep detailed records, including dates and proof of delivery, of all the documents you submit.
Changing Insurance Adjusters
Accident victims whose claim is being purposely delayed may see their claim reassigned to a new adjuster multiple times.
This is to create the need for the new adjuster to "review the case," resulting in unnecessary delays.
Offering Lowball Settlements
To create delay, the insurer might offer a settlement that is ridiculously lower than the case's true value in hopes that you'll either accept it or engage in a pointless back-and-forth to obtain a higher settlement.
Ignoring Communications
Insurers who seek to purposely delay your claim may ignore or take beyond a reasonable amount of time to respond to calls, emails, or letters.
Dispute Liability Without Justification
A more complex delay tactic to uncover is when the insurance company disputes liability in a claim without justification. This means they argue that the policyholder is at fault or that a third party is responsible.
This tactic is more complex to uncover because it requires substantial evidence to prove it false.
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Rodney Okano Car Accident Lawyer is a Las Vegas personal injury law firm with over 20 years of experience helping clients obtain maximum compensation following injuries from accidents such as car crashes, worksite injuries, and slips and falls. Over those years, The Rodney Okano Car Accident Lawyer Law Firm has become an experienced law firm that can ensure exceptional results for any of its clients.
