December 5, 2012 by Richard Gulbrandsen
The insurance industry is one of the most profitable areas of the United States economy. The unfortunate fact is, much of the money insurance companies make comes as a result of acting in bad faith by denying, delaying, refusing, and confusing policy holders. Some insurance companies will do everything they can to avoid paying claims.
Here are a few of the tricks that many in the insurance industry don’t want you to know about:
- Credit score discrimination: Some insurance companies charge more to people with poor credit scores. Even those who have a low credit score due to lack of credit activity can be penalized.
- Denying claims: Even some of the largest insurance companies with the best reputations will deny valid claims in an effort to pad their bottom lines. Some even go as far as rewarding employees who successfully deny claims, or firing those who do not.
- Abandoning the sick: Some insurance companies will retroactively cancel insurer’s policies if they become chronically ill. Some insurance company employees will even pay bonuses to those who meet their cancellation goals.
- Delay until death: Insurance companies know that if they delay claims long enough, many policy holders will eventually give up. Some insurers even go as far as delaying a claim long enough until the policy holder passes away.
- Raising premiums because of a phone call: Oftentimes insurers will raise premiums or refuse to renew a policy just because a customer called about making a claim.
- Confusing customers: Many consumers are unaware of their policy details and only find out later that their contract contained a catch that gets the company off the hook for paying what seems like a reasonable claim.
While the state of Arizona has a government agency that regulates the insurance industry, they are often as sympathetic to insurance companies as they are to policy holders. If you’ve been the victim of an unfair insurance company practices, you need the help of an experienced and aggressive attorney. Call Skousen, Gulbrandsen & Patience for your free initial consultation today at 480-833-8800.
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