Spokane Personal Injury | Is The Insurance Fair Conduct Act Increasing Questionable Insurance Claims?

According to the Northwest Insurance Council, “questionable” insurance claims have risen 9.3% since 2008 in Washington State. The reason given? The Insurance Fair Conduct Act (IFCA).

IFCA allows insureds to sue insurance companies for unreasonably denying insurance claims. IFCA allows for the recovery of attorney fees, actual damages, and treble damages. The idea behind IFCA is to prompt insurance companies to engage in fair and just claims handling practices.

The Northwest Insurance Council believes that IFCA has instead prompted insureds to sue when questionable insurance claims are denied. According to the Northwest Insurance Council, IFCA “ended up saddling the insurance industry with unnecessary costs, as companies now must weigh paying out a claim they believe to be fraudulent with the possibility of going to court over a refusal to pay.” You can read more here.

This entry was posted in Bad Faith, Insurance Fair Conduct Act (IFCA), Insurance, Claims Handling, insurance Bad Faith, Claim Denials and tagged , , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s