When is it time to sue an insurance company?

Very few people relish the thought of going up against a Massachusetts insurance company in court. You probably know that these companies off and retain lawyers and have significant financial resources to fund legal battles. However, confronting an insurer acting in bad faith could start a process that ends with you collecting the benefits you deserve.

he would generally have several alternatives when considering the first course of action to take if you believe an insurer denied you reasonable benefits on a claim. You might pursue internal appeals if you believed in the integrity of the insurance company. Formal letters with specific articles included may also a sensible alternative.

However, even if you follow all reasonable and appropriate courses of action, it may become clear that your insurer engages in deceptive business practices. In this case, your best alternative would typically be to involve the court system.

You would probably be most familiar with the first definition of unfair or deceptive practices as described in Massachusetts General Law: misrepresenting benefits, terms, conditions or advantages of policies. However, there are many other possible infractions that could lead to the unjust denial of your claim:

  • Using a misleading name for a policy or group of policies
  • Misleading you to lapse in, end or convert your coverage
  • Misrepresenting an underwriter’s financial health

Your policy should be a safeguard against unavoidable losses, not a loss in and of itself. If you believe that you were the victim of unfair practices, you would not be alone. Massachusetts law could provide some recourse for you to get what your insurance company owes you. Please do not view this as legal advice. It is educational material.

 

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