Maryland Unfair Claim Settlement Practices Lawyers

The Maryland Insurance Article provides numerous guidelines with with insurers must comply when deciding whether to cover or pay a claim.  Brown & Bullock represents policyholders whose claims have been denied by an insurer evaluate their opinions and pursue statutory claims both in the claim process itself and before administrative tribunals and trial courts.  We also assist insurers and insurance professionals evaluate claims and structure claim decisions to avoid unnecessary coverage and comply with Maryland insurance laws that regulate claim settlement practices.  Read below and contact the experienced Maryland insurance lawyers at Brown & Bullock, LLC with additional questions or to schedule an initial consultation today.

What is a Denial of Coverage?

A denial of coverage occurs when an insurance company refuses to pay some or all of a claim that an insured believes should be covered under the policy. The insurer will typically issue a written denial letter that cites specific policy provisions, exclusions, or conditions as the basis for the decision. Insurers need to provide the reasons for denying a claim, in a manner that is accurate, fair, and based on specific policy language.

Coverage denials – even in instances where the underlying decision is ultimately correct – may expose insurance carriers to regulatory enforcement or litigation when insurers fail to adhere to Maryland law.

Common Reasons Insurance Companies Deny Claims

Insurance coverage is intimately tied to policy language. Common reasons for claim denials may include:

• Alleged policy exclusions, such as exclusions for certain types of damage or losses
• Claims that the loss occurred outside the policy period
• Assertions that the insured failed to provide timely notice of the claim
• Alleged misrepresentations or omissions in the insurance application
• Disputes over whether the loss qualifies as a covered occurrence or event
• Claims that policy conditions were not satisfied, such as cooperation or documentation requests

What are Unfair Claim Settlement Practices?

Insurance unfair claim settlement practices are statutorily-created acts that insurers are prohibited from engaging in when evaluating coverage and settling claims.  While insurers are generally obligated to act in “good faith” when settling claims, unfair claim settlement practices encompass a wide range of actions ranging from misrepresentations of facts underlying the loss following receipt of a claim to failing to promptly explain the basis of the denial of a claim upon request.  Even when a claim is ultimately denied, the process by which that decision is reached matters.

Examples of Unfair Claim Settlement Practices

Unfair claim settlement practices, set forth at Section 27-303 of the Maryland Insurance Article, can take many forms.  Common examples can include:

• Misrepresentation of facts underlying the loss or policy provisions that potentially apply to coverage
• Refusing to pay a claim for “arbitrary or capricious” reasons based on all available information
• Failing to settle a claim under one part of a policy to influence settlement on another part of the policy
• Failing to investigate a claim thoroughly or promptly
• Ignoring or misrepresenting key facts supporting coverage
• Relying on unreasonable interpretations of policy language
• Delaying payment without a legitimate basis
• Offering settlement amounts far below the value of the claim
• Refusing to promptly explain the reasons for a denial

Contact Our Unfair Claim Settlement Practices Lawyers

Unfair claim settlement practices claims often involve a significant overlap of administrative and judicial recourse. The attorney at Brown & Bullock have substantial experience evaluating insurer settlement practices related to a wide array of industries and policy types.  When claims cannot be resolved at the carrier level, our litigation experience allows us to seamlessly pursue claims on behalf of clients at the claim submission level, as well as before administrative tribunals and state and federal trial courts.  Here at Brown & Bullock, we proudly represent policyholders facing coverage disputes and unfair claim settlement practices throughout Maryland.

Our substantial experience pursuing unfair claim settlement practices also allows us to help guide insurers and insurance professionals strategically respond to allegations of unfair claim settlement practices and to create best practices to mitigate and defend against future disputes in this arena in the future.

Contact our legal team today with more questions or to learn how we can help.