Payment Delays Save Money — for the Insurance Company
If the insurance company does not pay you right away, they can keep earning money on your money. And if they continue to delay, you might give up asking for the money they owe you. That really saves a lot of money — for the insurance company.
Contact Stephen C. Ryan, Insurance Bad Faith Lawyer · 623-551-3813
Insurance payment delays have become standard for many insurance companies. Yes, it is against the law, but the laws and state insurance regulations have no real consequences unless you get legal help enforcing those laws. At the Stephen C. Ryan law firm in Phoenix, Arizona, attorney Ryan knows how insurance companies work. He helps clients who are the victims of insurance bad faith.
Payment delay is part of the insurance industry's delay, deny, defend tactics to maximize profits by minimizing the amount they pay in claims. They know that if they stall in paying they can hold the money longer. They also know that as they delay payment, the attrition rate will increase — people will simply give up waiting for their money.
Claims should be paid within 30 days after satisfactory proof of claim.
That's the law. The insurance company has to pay the claim within a reasonable amount of time after proof of the claim has been submitted, but in no event longer than 30 days. But there are many excuses. The proof of claim is supposedly not "satisfactory." Or "let me see what happened to your check." Or you experience "musical adjusters" where the responsibility for your file continues to switch from one adjuster to another. One insurance company has a policy of not paying until the policyholder complains at least twice.
Insurance companies know how to collect premiums and cash policyholder checks, but when it is time to pay a claim, insurance payment delay is the standard. If you have been the victim of delay tactics, contact experienced insurance bad faith lawyer Stephen Ryan for a free consultation.
