Insurance 101 – Chapter 11 – Volume 88 – Limitation on Defense – 4

 Limitation on Defense – 4

An insurer’s Special Fraud Investigation Unit (SIU) should be trained to thoroughly, fairly, and intelligently investigate every potentially fraudulent claim. The claims department must likewise be trained to investigate every claim where a question of coverage exists. The investigation must be well documented and the decision to deny must be made in good faith with the advice and counsel of an experienced coverage lawyer. If the  investigation is thorough, in good faith, and survives the analysis of experienced counsel the reasonable dispute doctrine should defeat any suit for bad faith.

The following video was adapted from my book, “Insurance Claims A Comprehensive Guide” Published by the National Underwriter Company and is available at the Zalma Insurance Claims Library

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The author and publisher disclaim any liability, loss, or risk incurred as a consequence, directly or indirectly, of the use and application of any of the contents of this blog. The information provided is not a substitute for the advice of a competent insurance, legal, or other professional. The Information provided at this site should not be relied on as legal advice. Legal advice cannot be given without full consideration of all relevant information relating to an individual situation.

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