At Morgan & Morgan, our attorneys understand that when a policyholder who has paid insurance premiums submits a claim to their insurance company, they expect the company will act in good faith and honor the validity of the claim. However, many times the insurance company does not do what is right and honor the claim. Disputes often arise after an insurance company denies a valid claim, many times without a legitimate reason or explanation.
Disputes also can occur if insurance companies fail to pay medical providers the money they're entitled to from policyholders in states with no-fault insurance and personal injury protection, or PIP. Insurance companies generate a greater profit when policyholders do not file claims or fail to collect on claims submitted under their policies.
Some insurance companies habitually deny claims—regardless of their legitimacy—and will only investigate a claim if the policyholder takes legal action.