When dealing with insurance claims, it’s crucial for insurers to act fairly and in good faith toward claimants. Unfortunately, not all practices in the insurance industry are above board, which is why laws like WAC 284-30-330 exist to protect policyholders. This regulation outlines several specific unfair claims settlement practices that insurers should avoid. Let's break down the key points from this regulation to understand what constitutes an unfair practice.

What Are Unfair Claims Settlement Practices?

  1. Misrepresentation: Insurers must be honest about policy terms and coverage.
  2. Delays: Insurers should act promptly in acknowledging and investigating claims.
  3. Proper Investigation: Claims must be thoroughly investigated before payment decisions.
  4. Fair Settlements: Insurers must settle fairly when liability is clear and not pressure claimants into litigation.
  5. Clear Payment: Payments must be accompanied by explanations of coverage.
  6. Timeliness: Claims should be processed and paid promptly, typically within 15 business days.
  7. Discrimination: Insurers can't discriminate against claimants with public adjusters.
  8. Draft Payments: Settlements must be honored within three days.
  9. Appraisals: Delaying or inflating appraisal costs is prohibited.

These standards ensure insurers treat claimants fairly, avoiding practices that could harm policyholders or delay rightful settlements.

What to do if Your Insurance Company Acts in Bad Faith?

If you believe that your insurance company acted in bad faith, we recommend that you consult with a qualified insurance lawyer. 

At GLP Attorneys, we have significant and deep experience helping injured people receive the settlements they deserve under their insurance policies. We have a proven track record of making insurance companies live up to the promises made in the insurance policy, and with decades of experience in handling insurance bad faith claims, we are here to help you.

If you have been involved in an Insurance Bad Faith incident, call practice leader Scott Shawver at 800.273.5005 for a free consultation.