Unfair property/casualty claims settlement practices Act

The Ohio Unfair Claims Settlement Practices Act establishes rules that insurance companies must follow when handling property and casualty claims. These rules ensure that policyholders are treated fairly and that claims are processed promptly. Here are the key ways in which the Act affects the claims process:

Fair Treatment: Insurance companies must treat policyholders fairly and honestly. They cannot misrepresent policy provisions or deny claims without valid reasons.

Timely Responses: Insurers must acknowledge receipt of a claim within a specified timeframe and respond promptly to any communications from the policyholder.

Claims Investigation: Insurers must conduct a thorough investigation of each claim to determine liability and the appropriate settlement amount.

Settlement Standards: Insurers must decide whether to accept or deny a claim within a specified timeframe. If more time is needed, they must notify the policyholder and explain the delay.

Documentation: Insurers must maintain detailed documentation of each claim, including all communications, transactions, and claim forms.

Penalties for Violations: If an insurance company violates the Act, the policyholder may be entitled to damages, and the insurance company may be subject to fines imposed by the Ohio Department of Insurance.

Overall, the Act is designed to protect policyholders and ensure that insurance companies handle claims fairly and promptly.

For the full version, click here.