Insurance Companies and Their New Dirty Tricks

We often write about how insurance companies are motivated by money. As the insurance companies see it, their function is not to help you when you are sick or injured. Insurance companies are focused on their bottom line. Their function is to make money, and insurance companies don’t make money by paying out claims. Insurance companies make money by collecting your premiums and then figuring out ways to limit your payout, or deny your claim all together. Recently, insurance companies have been developing new tricks to increase their profits. Among their new tricks are voiding policies once an insured makes a claims and pressuring claimants to find other means of benefits, such as disability.

Though it seems unethical, insurance companies have become skilled at voiding insurance policies after a claim is filed. What the companies do is they accept an application for insurance and collect your premiums. Then, if one of their policy holders makes a claim, they will sift through the application for any piece of information they can use to void the policy. For those who have applied for insurance coverage, you know how much information the insurance companies ask for. One mistake on that application and the insurance company will try to void your policy. These companies have gone so far as to void an insurance policy while the claimant was undergoing chemotherapy for cancer. The insurance company found a difference between the claimant’s weight as listed on her application, and the claimant’s actual weight. It has been discovered that some insurance companies give their employees bonuses for the number of claims they deny and the number of policies they void.

Aside from voiding policies outright, insurance companies use other means to avoid paying out policy claims. Insurance companies will also encourage, and often pressure their policy holders to seek other means of medical benefits. A former insurance exec recently revealed that his company forced claimants to file for Social Security Disability benefits. If a claimant refused to apply for the benefits, the company used this as leverage to reduce or eliminate their payouts. If a claimant is denied disability benefits, sometimes the insurance companies require the claimant to go through a protracted appeals process. If a claimant does receive disability benefits, the insurance companies will subtract the amount paid in disability benefits from the claimant’s policy payout. Essentially, insurance companies have the authority to determine who may receive benefits and the authority to pay benefits. As some have argued, this creates a conflict of interest.

If you have been the victim of personal injury in Vermont or New Hampshire, it is important to hire a full service law firm. Don’t fall for the attorney advertisements that claim they will get you money fast. Full service law firms will not just take your claims to court, or negotiate a settlement. Full service firms have the expertise to deal with insurance companies and negotiate medical liens.