The insurance industry is heavily regulated in Illinois. This gives both insurance providers and consumers rights and obligations for the protection of both. In the case of total loss in Illinois, an affected consumer has the right to question the decision of the insurance company to declare a total loss and can dispute this action if necessary. How do you know when you have the right to lodge a dispute? To answer that question, it is necessary to understand some of the key provisions of the Unfair Claim Settlement Practices Act of Illinois.
What Is The Unfair Claim Settlement Practices Act of Illinois?
Illinois’s advanced and far-reaching insurance code regulates the service that insurance companies offer to their clients. Each insurance provider has a legal obligation to handle their claims promptly, fairly and transparently. The code lists many actions on the part of insurance companies that can be considered improper claims practices. These include:
- Knowingly misrepresenting relevant facts and policy provisions.
- Engaging in activity that prompts a disproportionate number of legitimate complaints against the company.
- Refusing to pay claims or knowingly underpaying them without proper investigations and without legitimate cause.
- Attempting to settle claims on the basis of an application that was altered without notifying the claimant.
- When denying a claim or offering a compromise settlement, failing to provide a reasonable and accurate explanation of the basis in the insurance policy or applicable law for denying or underpaying the claim.
- Attempting to settle a claim for less than the amount to which the claimant is entitled under the policy, establishing unreasonable caps or limits on paint or material when estimating vehicle repairs, or neglecting to pay additional charges such as sales tax, title transfer fees, tag transfer fees and more when replacing or repairing a vehicle.
These are only some of the stipulations of the code. The Unfair Claim Settlement Practices Act means that all claimants have the right to take legal action against insurers who violate any part of the state’s insurance code. This applies in many different scenarios, including in those cases when the insurance company declares a total loss and replaces a vehicle or pays out a cash settlement, but pays less than the car was actually worth or refuses to pay for taxes and fees incurred when the replacement vehicle is purchased. This is a common complaint that consumers make against insurance companies and one that entitles claimants to seek compensation.
Our Illinois-based legal team can help you with any improper claims practices
If you were insured under an auto insurance policy, experienced a total loss car accident, and were not reimbursed for sales tax and other fees by your insurance company in the last 5 years, you may qualify to join a total loss car accident class action lawsuit investigation. Contact Shamis & Gentile and book a free consultation. One of our experienced total loss lawyers will gladly assess the details of your claim and help you take action against the insurance company.