Many people who run across an insurance company that deals in bad faith
and other tactics, wishes they’d never had to deal with the company
in the first place.

It’s depressing, to say the least, to think that the insurance industry,
one of the biggest money makers in the US with profits over $30 billion
a year, have been known to stoop to engage in dishonest tactics and a
flagrant lack of ethics to inflate their profits.

Given the tough economic times America faces currently, it’s not
too much of a stretch of the imagination that those same insurance companies
will jack up their rates even more and deny more claims. While this might
be called a defensive position to support their bottom line, it certainly
plays havoc with the industry as a whole. “Not only that, it seriously
hampers consumers who ultimately suffer the consequences of denied insurance
despite paying their contractual obligations monthly – meaning premiums,”
commented Christopher Mellino, a Cleveland, Ohio lawyer.

People might once have thought that the big name insurance company we all
thought was the salt of the earth and had earned our family’s trust
was above reproach. Nowadays people are finding out that the family friend
has turned into Uncle Scrooge overnight and is not only denying reasonable
claims for strange reasons, but is delaying payments, burying customers
in insurance legal jargon and even refusing people retroactively who file
claims. One might well ask, “What is wrong with this picture?”

“As horrendous as it may seem, there is evidence that those once
friendly companies have gone out of their way to deny claims by actually
offering rewards to employees who were successful in turning down claims,
added Mellino. Workers who would not engage in that kind of behavior were
fired. If denying claims didn’t work, some of these companies were
not above perpetrating fraud to not pay claims.

While denying claims is bad enough, get ready for the worst stunt in the
book – delaying claims until death. This has been done in instances
by long-term care insurers whose rationale is simply this: if they don’t
pay a claim they make money. Some of them have waited until an aged policyholder
died to avoid paying. “This behavior is just the tip of the iceberg
in an industry that is now also using credit reports to decide who gets
insurance or not and how much they will pay,” said Christopher Mellino,
a Cleveland, Ohio lawyer. Brings to mind another good question: “When
will it end?”