·  Legal News, Analysis, & Commentary


Apple Valley Attorneys Help Policyholders Access Insurance Funds after Denials

— February 21, 2022

Policyholders should be aware of the types of insurance coverages available, and what to look for when purchasing viable coverage options for their individual needs.

An insurance claims denial does not mean a policyholder’s claim is not valid. An insurance company may have wrongly denied a claim, or rejected it because it contained missing, or incorrect information. When an insurance company denies a policyholder’s claim, they can contact an insurance claim denial attorney in Minnesota where the  policy coverages apply, at, or by calling 866-335-8999 to get in touch with an insurance claims denial lawyer nearby. 

Minnesota bad faith claims

Insurance claims attorneys can be helpful with policy reviews, and enforcement interactions with companies who do not uphold the terms of Minnesota insurance policy documents when claims become problematic after unjustified denials occur.  There are many specific requirements that must be met by the insurance company.  Bad faith insurance victims often qualify for compensation equal to the entire value of their damages in addition to the original claim value.  Policyholders may suspect bad faith insurer actions if a company is:

  • Failing to keep open lines of communication,
  • Allowing excessive delays,
  • Is not addressing relevant facts,
  • Is inaccurately utilizing the insurance policy clauses of coverage,
  • Refusing coverage,
  • Demanding excessive supporting documentation and related paperwork,
  • Failing to fully compensate a claim.

Policyholders should be aware of the types of insurance coverages available, and what to look for when purchasing viable coverage options for their individual needs.  It is most important to understand the inclusionary coverages laid out in the policy and items that are not covered, in the event a policyholder needs to make a claim.  Claims are often denied because a policyholder is unaware of the guidance in the insurance policy document that strictly prohibits coverage of certain losses.  

Other reasons for denial or partial pay

Damage recovery under most insurance policies is limited to losses due directly to the occurrence of an insured peril named within the insurance policy itself. Losses caused by some intervening source that are not insured by the policy are not covered. Insurance disputes arise in many ways. An insurer may not offer fair value for property damage under a policy, or an insurer will deny a claim, supporting the denial with transference of fault onto the policyholder, stating that they intentionally caused the loss, or misrepresented themselves in order to purchase the policy at issue. Other claims are denied when insurers blame policyholders for late insurance premium payments causing gaps in coverages. There are times when only partial benefits are approved for payment, and this is a partial denial of benefits. When individual’s claims are denied due to dishonest dealings as a matter of company policy, policyholders should contact legal counsel to assist in the settlement of the matter.  Denial of legitimate claims on a paid-up policy could be an incident of consumer fraud, which is actionable in court. Common reasons for claim denials include:

  1. Company does not want to pay, bad faith contract.
  2. Mistakes on an application. 
  3. Lack of coverage: The claim does not cover the damages a policyholder is seeking.
  4. The claim was not filed correctly.
  5. Policy modifications were made after a claim was filed.
  6. Misrepresentations of a policyholder’s true damages.
  7. There was a gap in coverage due to non-payment, or late payment of premiums coinciding with a loss event.

When to entertain legal action

Woman holding cellphone with "Calling Lawyer" on the screen and a picture of a lawyer; image courtesy of author.
Woman holding cellphone with “Calling Lawyer” on the screen and a picture of a lawyer; image courtesy of author.

If a denied claim cannot be settled between the parties of the contract, then legal action will be based on Minnesota and federal insurance laws. Insurance policies are a contract between the insured party and the provider, so when a dispute arises about questions of coverage, or denial of legitimate claims comes up, the Minnesota contract laws will be the basis of argument for a policyholder’s case. If an individual has questions regarding the basics of insurance policy clauses, an experienced insurance attorney may be of assistance and respond on an individual’s behalf when denied claims occur.


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