Why Insurance Companies Get Regulated

Sometimes the victims of a car accident look to the insurance company for help. For that reason, the adjuster tries to appear helpful. Yet not all adjusters put a priority on helping those with a personal injury claim. That fact highlights the need for regulation.

Deceitful acts that are supposed to be prevented by introduction of regulations

An attempt to evade some of the established rules. Regulators know the rules, and can note an attempt to evade such rules. So, they make an effort to deny a claim. Regulators seek to learn the reason for such a denial.

Efforts to manipulate a claimant’s files. Regulators check for evidence of such manipulation. Unfortunately, regulation does not manage to control all of the actions that might cause a policy holder to suffer from an insurance company’s bad faith. More in a later section on those issues that do not always get well regulated.

Approaches to regulation that get used with automobile insurance companies:

Personal Injury Lawyer Oakville study the policy that is sold to customer. Does it provide all the required coverage? Almost every state and province demand inclusion of liability coverage. That covers the cost of harm to others if the insured driver gets held liable for injuries suffered by the other driver, and any passengers in the other driver’s car.

Some states require other types of coverage. Other states allow the same coverage to be optional. Hence a policy might include a provision for uninsured or under insured drivers. It could also have comprehensive or collision coverage. In addition, it might provide for medical payments or personal injury protection.

Other issues that relate to attempts at regulating the insurance companies

• Denial of payment to policy holder that has submitted a claim; regulators want to know the reason for the denial.
• Disputes concerning the rates charged by the insurer. Regulators watch for evidence of prohibitive rates.
• Determining who should be held liable for a given accident. This issue does not always arise between two drivers. It might arise between a driver and the passengers in that same driver’s vehicle.
• Disputes over the cancellation of a given policy. Insurer must have sound reason for cancelling a given policy.
• Breach of contract on the part of the insurance company
• Evidence that fraud has been conducted by someone that is working for the insurer.
• The legal team that the insurance company has given to a defendant gets charged with mishandling its assigned case.
• A dispute arises over an insurance company’s decision to classify a damaged car as salvage.

The person that feels victimized by such an issue should seek an attorney’s help. Lawyers understand how to work with regulators, so that a policy holder does not become the victim of some insurance company’s bad faith.