Insurance companies generate huge profits every year, bringing in more than $30 billion. Furthermore, they possess assets worth trillions of dollars and the CEOs of these companies make generous salaries, more than in any other industry. The consumer is the one who pays for their lavishness, as they tend to treat their clients unfairly. Huge rate hikes continue to be witnessed and claims are being denied at rates not seen before.

The same companies spend billions on advertising to generate more business as they deny these claims, delay payments on claims that have been approved, and use insurance-speak to confuse their clients. Furthermore, they are known to retroactively deny individuals they believe may cost them money and cut into their profits. How do they do so?

Denial of Claims

Major insurance companies, including names such as State Farm and Allstate, deny valid claims to increase their profits. They have taken this much further, however, and provide some employees with rewards for denying valid claims. At the same time, employees who failed to reject these claims were released. In addition, outright fraud has been reported in the industry, as the insurers do everything in their power to avoid paying out on claims.

In certain cases, an insurance company takes a consumer’s money for years only to cancel or rescind the policy when the person develops a major illness. They often provide bonuses to those employees who meet an established cancellation goal. There is no relationship between the insurer and the client, as he or she is simply a customer who can be easily replaced.

Credit Score Discrimination

Insurance companies often look at a consumer’s credit score when determining premiums or whether to offer coverage to an individual. Individuals who have suffered financial difficulties in the past may find they are unable to obtain coverage, the premiums are excessively high, or their policy is not renewed. The driving record of the individual, for example, may actually be of less concern than their credit score.

Major Delays

Insurers employ another tactic to reduce their costs. They frequently delay claims in the hopes the policyholders will give up. Individuals who are elderly or ill may find their claim is delayed for extended periods of time. The insurance company also does so in the hopes the policyholder will pass away before any money changes hands. While this may seem heartless, it sadly happens more than people realize and it needs to stop.

Industry Jargon Leads to Confusion

Pick up an insurance contract and attempt to read through it. An attorney is needed to determine exactly what is and is not covered. However, many individuals purchase a policy believing they are protecting for most occurrences. It isn’t until they file the claim they learn they are denied due to some obscure clause hidden in the contract.

Phone Call Cancellations

Certain insurance companies have now cancelled or failed to renew a policy simply because the insured called to ask a question about their coverage. Others raise the premium for the policyholder, even if the call involved nothing more than inquiring about the claim process or the possibility of filing a claim. The inquiry is viewed as a claim and leads to the cancellation of the policy, a failure to renew the policy, or a premium hike.

Individuals who are being treated unfairly by their insurer need to obtain the help of a professional experienced in these matters. Some individuals turn to an attorney only to find a public adjuster would be of more assistance. Don’t delay in obtaining help, as insurance companies count on consumers doing so. Take the advantage away from them by bringing in an adjuster today.

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