What You Should Know About The Wisconsin Unfair Claims Settlement Practices Act

According to Wisconsin law, insurance companies must act in good faith when it comes to the claims process. This is crucial since they have more power and finances at their disposal compared to their policyholders. As such, they must be fair towards insured individuals who deserve damage compensation.

Acts that are created to exact higher profits from policyholders who insurance organizations are supposed to protect are illegal. All third-party claimants must be treated fairly, according to the policies they hold. However, this does not mean certain insurance companies don’t try and make a quick buck by underpaying or denying fair claims.

The Unfair Claims Settlement Practices Act

The Wisconsin Unfair Claims Settlement Practices Act, protects the insured from unreasonable, unfair, and unjust actions their insurance companies can take to compromise their claim. These laws were created to prevent powerful insurance organizations from dodging payments, delaying claims processes, or trying to shirk responsibilities they are paid to maintain.

According to the law, insurance companies:

• Must disclose all coverages and benefits outlined in the policies their customers paid for.
• Must provide reasonable aid to customers during the claims process.
• Cannot deny claims based on illogical time limitations, which are given to claimants when it comes to proving loss or property damage.
• Must provide the necessary forms and documentation claimants need to make a successful claim.
• Provide reasonable and logical explanations to claimants for denying claims.
• Cannot send a settlement to a claimant that is less than the total for the loss of damages – unless the policyholder agrees.
• Cannot force policyholders to travel an unreasonable distance to complete their claims process.
• Cannot misrepresent their policies to their customers in any way.

If your insurance company is trying to delay your claims process or refuses to make full payments because of unreasonable premises in Kenosha, WI, you have the right to sue. Get in touch with attorneys at the Law Offices of John V. O’Connor to settle claim disputes to ensure they are in your favor. We have intimate knowledge about the claims process and are well aware of how insurance companies can try and fool their clients into settling for a low claim. Make sure this doesn’t happen to you by getting in touch with us for a consultation today.