Can an insurance company rescind a settlement amount 2 months after the settlement was offered?

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Can an insurance company rescind a settlement amount 2 months after the settlement was offered?

We have a personal property claim in which the insurance company has been delaying paying for 4 months. A verbal agreement was made in September for $4049, but no check was forthcoming; emails and phone calls were ignored when chasing the check. After threatening legal action, a new supervisor has offered an amount of $2800 with prices of items based on fFre sales for November, and not prices in July when the claim was lodged. Can they do this?

Asked on November 24, 2010 under Insurance Law, California

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

They are attempting - and quite poorly I might add - to negotiate the claim.  Do not get upset.  It is their job to settle the claim for the best amount that they can.  But you have rights and you should look in to them.  First, you need to read your policy as to the values set for the property and for the type of loss that was incurred.  Was it replacement value?  Probably not but maybe with the way you have phrased the question. Was there a deductible and was there depreciation taken out?  Probably.  You need to ask for a complete list and determination of the claim from the adjuster in writing so that you can look and see the difference between what you submitted and what you are being offered.  And then you may need help from an adjuster or attorney to negotiate the claim.  Good luck.


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