When Arizona consumers purchase goods or services, they have a right to expect fair and honest treatment from the provider. When they don't get it, the first step is often to work up a chain of representatives until someone does the right thing.
Let's say that you are an Arizonan who speaks English as a second language. When you purchased your insurance policy, your provider gave you a contract written in your mother tongue. After all, insurance contracts can be confusing enough without trying to decipher a language with which you aren't familiar. You expect that the terms of your contract will be the same in English as in your native language.
For most people, GEICO Indemnity Insurance CO. (GEICO) is best known for its television commercials involving a computer-animated lizard with a British accent. But the verdict of a recent bad-faith insurance case paints it is an unprofessional and unscrupulous company that dragged out a policyholder’s insurance claim for six arduous years.
California’s recent wildfires have died down, ending a particularly brutal wildfire season. The past six months have been a turbulent period for wildfire victims, from private residents to local businesses. Experiencing the terrifying fires was difficult enough; now, survivors must also file insurance claims, recover their lost property and try to put their lives back together.
Following last year’s national tax overhaul, California State is reminding its insurance companies that their rates must reflect the new corporate tax rate. The Tax Cuts and Jobs Act was passed in December of 2017. One of its components was a major reduction of the corporate tax rate. Under the new law, the tax rate for corporations was slashed from 35 percent to 21 percent—a 14 percent difference. This means that insurers are obligated to adjust their prices to accommodate the new tax rate.
Although it has been nearly five months since devastating wildfires damaged thousands of California homes, thousands residents are still struggling to get their insurance providers to pay their damages. Many policyholders are realizing an uncomfortable, frustrating truth: That their insurance companies do not want to fulfill their promises.
The insurance commissioner of California is currently investigating the insurance provider Aetna regarding statements made by the company’s former medical director. In a recent deposition, the medical director stated that in all his time at Aetna, he never looked at clients’ medical records when he was assessing whether to approve or deny care. It is possible that many clients’ insurance claims were denied because their medical records were not properly assessed by a physician.
Californians have only recently begun to piece their lives back together after last fall’s spate of wildfires spread property damage throughout the state. There are many serious tasks to deal with, such as finding a new place to live and recovering lost property. Another important step that wildfire victims will have to take care of is filing a fire insurance claim.
You have lost your home to the devastation of the recent California wildfires, and you are wondering what to do next. One of the biggest questions on your mind is probably how to file an insurance claim and receive the payment that you need to rebuild your home. Like most policyholders, you probably anticipate that your insurance provider will offer you a settlement that is large enough to rebuild your house and replace your possessions. But this is not always the case. As we discussed in a recent post, insurance companies do not always play fair with their clients.
When 2017’s wildfires ripped through California, hundreds of thousands of policyholders trusted that their insurance policies would provide adequate coverage for the damage. Unfortunately, many Californians are finding out the hard way that insurance companies do not always come through for their clients. Even if a policy provides coverage for fire damage, an insurance company will not always honor it.