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Insurance Companies Will Do Everything They Can to Deny Your Claim

05th January 2009
By Kenneth L. Christensen in Legal
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When you're paying a large sum of money for your monthly insurance coverage, you expect your provider to do just that: cover you. It's a simple deal between you and the insurance company and when you're the victim of an accident, it's only fair for your provider to hold up their end of the bargain. Unfortunately, that's not always the case. In fact, many insurance companies bend over backwards to deny your claim, leaving you with the excessive bills.

Denying claims can be an easy accomplishment for an insurance company. One insurance giant refused to cover a 60-year-old woman's medical bills after an accident, claiming the responsible person acted in a fit of road rage. Therefore -according to the insurance provider- the accident was not an "accident," but a deliberate action. Claim denied.

Loopholes such as this allow insurance companies to deny claims for completely obscure reasons. By denying claims, insurance giants boost their profits and leave their clients in the dust. The logic behind such acts may be good for profit, but it can ruin a client's life. While deliberately hurting a client is simply poor business savvy and would lead any corporation to inevitable doom, insurance companies have one decisive advantage: everyone needs coverage. Clients can complain all they want. In the end, however, there is little they can do about it.

Take Farmers Insurance, for example. According to a Market Conduct Examination Report conducted in 2007, this major insurance provider gave incentives to adjusters who met low payment goals, all in the quest to aggrandize the company's bottom line. Their goal was a far cry from providing the best coverage possible for their clients. They were simply looking out for themselves.

Of course, Farmers is not the only major insurance company to engage in this type of behavior. Some of the nation's largest insurance providers -including AIG, Allstate and State Farm- have gone to extraordinary lengths to boost their bottom line. One provider has been known to reward its employees who deny claims with different prizes. Another company would replace employees who do not deny enough claims. One insurance giant went so far as to commit fraud in order to reject valid claims.

Behavior like this can lead countless accident victims into overwhelming debt and years of financial struggle. Yet many insurance companies continue to deny completely valid claims, all for the sake of enhancing their already substantial profits.


Kenneth L. Christensen founded The Christensen Law Firm, PLLC, a personal injury law firm in Salt Lake City, Utah. He specializes in car accident, dog bites, wrongful death and serious injury cases. Learn more about Mr. Christensen at
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