AAJ Publishes Second Report about Insurance Industry’s Bad Faith Practices

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Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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UPDATED: Feb 9, 2020

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In its second report on the topic this year, the American Association of Justice (AAJ) takes another look at the insurance industry’s bad faith practices. Entitled Tricks Of The Trade: How Insurance Companies Deny, Delay, Confuse and Refuse, the report provides detailed information about the tactics insurance companies use to avoid paying claims.

The AAJ’s earlier report, The Ten Worst Insurance Companies in America, was published a few months ago and provided a candid look at the ten worst insurance companies notorious for denying claims. Just in case you were wondering who made that list, here’s the 10 worst:

1. Allstate (Worst)
2. UNUM
3. AIG
4. State Farm
5. Conseco
6. WellPoint
7. Farmers
8. United Health
9. Torchmark
10. Liberty Mutual

What Can You Do About It?

In addition to describing how the insurance industry uses tactics to deny, delay, confuse and refuse, the AAJ’s report provides policyholders the following recommendations:

  • Read your policy carefully. You should know exactly what is covered and how to appeal a denial by your insurance company.
  • Be careful filling out forms. Even if you make an honest mistake your insurance company may seize on that as a reason to retroactively deny your coverage.
  • Do not cash a premium refund check. If your insurance company rescinds your insurance they may send you a refund for the premiums you paid. Cashing it may be interpreted as accepting their decision.
  • Put everything in writing. Calling your insurance company is likely to be a frustrating experience, and you will not be able to prove anything that a company representative tells you over the phone. Keep records of all bills and correspondence.
  • Contact your state insurance department. They may be able to help you. But they will not represent you in a private matter, so if all else fails you may need to consult with an attorney.
  • And most of all, do not give up. Insurance companies count on you giving up. Fight for your rights.

If your insurance company has acted in bad faith, contact a bad faith insurance attorney about your situation. Consultations are free, without obligation and are strictly confidential.

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