Claims Denial

Some people know what a Credit Life and Disability Policy is but not everybody. Essentially it is a policy of insurance that is purchased by a borrower of money and the policy is suppose to do two basic things. One, pay off the loan in the event the insured person dies and two, make the payments due on the borrowed money while a person is disabled for as long as the disability lasts.

Most of the time these are purchased in two situations. The first and most common is when someone mortgages their home. The second is when someone purchases an automobile. There are many other financial situations where a credit life and disability policy is offered to a borrower and sometimes the lender requires it to be purchased.

Another situation where these types of policies are seen is in credit card transactions. Lots of credit cards offer the coverage free of charge while others charge you a few dollars a month for the coverage. In the credit card situation it is usually a matter of knowing or remembering you have the coverage when the time comes for yourself or a surviving heir to apply for the benefit. We have not seen lots of situations where this benefit is denied or refused in a credit card situation and in the situations where it has occurred, we have been able to resolve the conflict with a few phone calls or certified letters. It has been rare to actually get involved in a lawsuit.

If you listen or watch the news much, especially around election time you would think that the only thing insurance companies ever do is pay claims. And not only do they pay claims, but they pay nothing but frivolous claims. And of course that is why your insurance rates are so high and why the above title would be a headline.

Politicians scream loud about the need for tort reform and about how there are too many lawsuits and too many people looking for a free ride. This is especially true in a Texas where there is a very conservative political environment. This is an issue that helps get a lot of politicians elected. George Bush was always invoking the evils of “trial lawyers”.

So based on the above you would think it is unusual for an insurance company to actually deny a claim and that the companies only exist to pay people unwarranted claims. This thought is far from reality.

Articles Posted in Claims Denial

Texas Insurance: Credit Life and Disability Policies

Insurance Company Denies Claim In Texas