- Many people don't fully understand the insurance contracts they buy, even after they file a claim. California law requires insurance company representatives to fully disclose all rights and benefits of the policy and forbids them from concealing any benefit. For example, if your auto policy allows you to rent a vehicle while yours is being repaired, your insurer must inform you of this, even if you do not intend to rent a car.
- The California insurance commissioner has the right to inspect any insurance claim file. Each insurer must keep claims information in an easily accessible, easy-to-read format that includes the claim number, lines of coverage, date of loss, date of payment of the claim and date of insurer acceptance or denial, or date closed without payment. This data must be stored for at least five years for each claim.
- California insurers are forbidden from issuing partial payments on a claim or paying less than the full amount due to the customer, compelling the claimant to sign off on language releasing the insurer from further financial liability, or barring the customer from seeking further settlement money unless the policy limit has been paid in full or the customer and insurer have mutually agreed that no further payments will be made. This protects claimants from relinquishing their rights to seek additional money simply because they want or need to cash an initial settlement check.
- Insurers must respond to claimant inquiries within a certain period. When a claimant files notice of a claim or sends correspondence regarding a claim that requires a response from the insurer, the insurance company must respond within 15 calendar days, unless payments are made to close the claim in that time. Insurers have up to 21 days to respond to inquiries by the department of insurance.
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