This blog post has been edited. It was originally posted on July 28, 2014. Facts of this case may have developed or changed since the original post date. Settlements/verdicts may have been reached or are in progress.
An investigation by KXAN in Austin found that many valid insurance claim payments were delayed until the injured party either filed a complaint with the Texas Department of Insurance or threatened a lawsuit in order to collect. According to the report, State Farm Lloyds tops the list of companies that delayed or denied claims over the past five years. Forcing Payment According to the report, which used records obtained by the Texas Department of Insurance, $27 million in claims were ordered to be paid by the department after the insurance companies denied claims. The Insurance Council of Texas, an agency who represents some of the companies involved, says that the cases are often complex, which is why many companies initially decline the claim, leading to a lawsuit or a complaint with the insurance department. Auto and Home Insurance The data obtained by the news agency found that State Farm Mutual Auto Insurance was ordered to pay back almost $5 million in 761 cases between 2009 and 2013. State Farm was followed closely by Old American County Mutual Fire Insurance Company, which had 1,584 auto insurance complaints filed against them and was ordered to repay almost $4.9 million in claims or face lawsuits. In home insurance claims, State Farm Lloyds had the highest number of complaints and the most claims ordered for repayment. The company had 419 complaints and was ordered to repay more than $6.1 million, significantly more than Allstate Texas Lloyds, which was in second place with 143 complaints and repayment of just over $1.5 million. Health and Life Insurance It was not only home and auto insurance denials that led to complaints filed against insurance companies. Claims denied by health and life insurance companies also resulted in the denial being overturned by the state after a complaint or threat of lawsuit. United Healthcare Insurance Company had 1,518 complaints and was ordered to reimburse claims totaling almost $7.3 million while Aetna Life Insurance Company was required to pay more than $5.6 million after 480 claims were filed against them. American General Life Insurance Company led in the life insurance category with 39 complaints and more than $2.6 million in claims ordered to be paid; Jackson National Life Insurance Company came in second with just over $1.2 million ordered in only seven complaints. If you or a loved one has had an insurance claim denied, a lawsuit may be in order. Contact Dallas-Fort Worth lawyers at Frenkel & Frenkel to schedule a free initial consultation. For more information on Frenkel and Frenkel, please visit our website at www.FrenkelFirm.com.
