Are insurance companies required to pay their claims?
Last edited by vasuderatorrent; 10-18-13 at 02:25 PM.
Re: Are insurance companies required to pay their claims?
Insurers are required to have "X" dollars in cash reserves. I don't know when an insurance company has gone bankrupt. The reserve requirements are non-negotiable.
Originally Posted by vasuderatorrent
If they "don't feel like paying your claim," your state's Dept of Insurance will act on your behalf. If they fail to do so, they'll have so much paperwork coupled with meaningful fines, they would rarely do that. It would have to be a misunderstanding.
If you're not insured for a particular loss, you don't get paid. That also is non-negotiable.
Insurance spreads the risk around; prevents people from going bankrupt and protects other people from the careless actions of others. And, of course, Mother Nature.