In case of damages or claims, the following question works as a litmus test of sorts for the
policyholder: is the insurance provider actually working to settle the claim, or is it simply reneging on its responsibility to provide coverage?
Considering that more than 50 million insurance claims are filed per year, this question comes up all too often. This is not to say that insurance providers generally break their policy commitments or systemically deny policyholder claims. The fact that insurance providers themselves investigate
whether and how much must be paid in the event of a claim, however, can be very frustrating for many policyholders. They assume that their policy assures them assistance but are then faced with obstructions in getting providers to honor their agreements. The providers’ explanations for denials
of claims are full of technical terms (like “policy conditions”, “risk exclusion clauses”, etc.) and
obfuscation. This can make it very difficult for “laypeople” to understand, much less respond to,
denials of claims.