What kind of actions do the department of insurance take?

Question

When an adjuster is unreasonable delaying in the handling of a claim regarding decisions on coverage, liability or damages. What action would they department of insurance take if someone were to file a complaint?

Example: Adjuster sends claimant a letter saying she needs this one item to complete her investigation and evaluate the claim. Than a few weeks later she adds another item to her list in what she needs to complete the investigation. She recieves those items and still giving you the same problem.

Answer 1

You can file a complaint with the insurance department, and they will investigate. The actions they take will depend on what exactly the investigation turns up.

The complaint with the insurance department is not going to speed up this claim. If you are unhappy with your adjuster, call your agent and explain your situation. They can get in touch with the adjuster's manager and help you out.

Answer 2

Well, unreasonable delay is in the eye of the beholder.  Until the insurance company DECLINES the claim, the insurance department isn't going to do ANYTHING - after all, the adjuster is actively working on the claim.

One thing to keep in mind - especially if this is that pole/landlord/broken ankle claim I'm thinking of - the OTHER PERSON'S insurance company has NO duty of good faith towards YOU.  So they NEVER have to respond.  They can wait until the statute of limitations runs out, and then you can't even sue them!  This happens sometimes.

I'm not saying this is happening, because it COULD be that the adjuster is honestly trying to get things going.  But sometimes, you really DO need a lawyer, so the insurance company knows you're serious, and knows you're ready to file that lawsuit before the statute runs out.

Answer 3

An honest answer from a former adjuster.... i am guilty of snailing paperwork to the insured. But in my defense, the inly time I ever did it was on Suspected Arson cases and I was working with the local Fire Marshal Investigating Team. I never exceeded the contractual requirement to adjudicate the claim within a reasonable time, given enough information. Sometimes the information was coming from a source other than the insured. If this is not your circumstance.  Then call the Claims Supervisor and find out why she's dragging it.