In many instances, when speaking with potential clients that they have grown tired of waiting on their insurance company to investigate their insurance claim. Most clients are unaware that said delays are not unusual and are also unaware that generally there is little obligation in first-party insurance statutes for the insurance company to investigate any loss or claim.
Rather, the investigation of the claim is usually governed by contract principles which are established by and through the client’s insurance policy. Within the insurance policy there likely will be language that the first-party insurer has in contract law a right to demand that the person (policyholder) first submit a claim prior to an investigation by the insurance company.
In addition to the contractual principles governing investigation, some investigation duties have been found in some cases to arise out of the insurance companies' marketing and advertising promises. Some courts have found that the advertising slogans established a fiduciary relationship between the parties resulting in the insurance company’s duty to disclose known facts to the insured.
If you have questions regarding your insurance companies investigation of your insurance claim contact Robert Sparks Attorneys for a free case evaluation.