It can be a very sensitive situation for an insurance company when a policyholder disagrees with it over a policy denial or a claim payment offer. Such disagreements could have the potential to balloon into impactful legal matters. For example, it could lead to a lawsuit being brought. Another potential ramification such a disagreement could have here Louisiana is a policyholder filing a complaint against the insurance company with the Louisiana Department of Insurance (LDI). Such complaints could potentially lead to an insurance company facing an investigation from the government.
How common are insurance complaints in Louisiana? According to recently released statistics, in 2015, 3,667 consumer complaints were filed with the LDI regarding health, life/annuities or property/casualty insurance products. Nearly half of the complaints concerned property/casualty insurance.
The insurance complaint total was up from the previous year. In 2014, the total was a little under 3,000.
Why do you think insurance complaints to the LDI were up last year?
When an insurance company has a complaint filed against it with the LDI, it is very important for it to respond in a proper manner. How an insurance company acts when dealing with a policyholder and government officials after a complaint is filed can have big impacts on what ramifications come from the complaint. Thus, missteps in relation to such dealings could cause big problems for an insurance company.
Skilled insurance defense lawyers can advise insurance companies that are facing insurance complaints or lawsuits with guidance on how to handle their situation. Such attorneys can also give insurance companies that are facing potential disputes with customers over claims denials or claims offers guidance on what options are available for trying to keep the potential dispute from ballooning into a major issue.
Source: Insurance Journal, "Additional $5.1M Recovered for Louisiana Insurance Policyholders in 2015," Jan. 21, 2016