January 6, 2025
Yes or no, black or white, true or false? Life consists of choices and decisions. While some are straightforward, others are less so. This is particularly true when it comes to insurance claims.
In fact, not every claim submitted is immediately paid or denied. In fact, insurance companies in Oklahoma and across the nation respond to many claims with reservation of rights letters.
In general, these are notifications of indecision. But not everyone recognizes why this documentation is sent, what it means, or how to react. In fact, these letters may be a red flag indicating that your claim may, in fact, be denied. If you have received a reservation of rights letter you should consider speaking with an Oklahoma insurance dispute lawyer. Their perspective on your situation can guide your actions and help you prepare for the future.
What is a Reservation of Rights Letter?
Understanding the Communication You Receive
The term “reservation of rights letter” is confusing to many. Let’s face it — while most people do not expect that their insurance claim will be denied, they are aware of the possibility. What most individuals truly never considered was receiving notification from their insurance company advising that they need more time.
Specifically, a reservation of rights letter is correspondence from an insurance company to a policyholder stating that the submitted claim may not be subject to coverage and that they (the insurance company) are conducting a further investigation and confirming that they reserve their legal rights to deny the claim in the future.
Needless to say, while receiving a reservation of rights letter is not an outright notification of denial, it does indicate that your claim may be disputed and is cause for concern. Reach out to an experienced insurance denied claims lawyer for help in reviewing and interpreting this correspondence.
Why Do Insurers Issue Reservation of Rights Letters?
Reservation of rights letters are issued to by insurers as an act of protection. The primary goal of insurance companies is not to safeguard your well-being, but to protect their profitability. Basically, their loyalties lie not with their policyholders, but with their shareholders.
These letters let policyholders know that while their insurance company is further investigating their claim, the company reserves the right to deny coverage in the future. Some of the most common reasons for a reservation of rights letter include questions regarding the extent of the insured’s coverage, policy exclusions, and the insured’s compliance with policy terms. Finally, complex claims that involve multiple parties or issues may trigger these letters as they may each require their own investigation.
In short, reservation of rights letters confirm that your claim has been received, is open and under review, but existence and level of coverage have not been determined. These letters buy the insurance companies additional time.
What to Do If You Receive a Reservation of Rights Letter From Your Insurer
The insurance claim process involves a great deal of waiting, and often there is nothing you can do. The time following the receipt of a reservation of rights letter, however, is different. This letter should be recognized as a bit of a red flag: it is the first indication you have that your claim may be denied or not paid in full.
While this notification indicates that your insurance company needs more time to investigate your case, there are things you should do. The actions you take at this point in time are critical in protecting your rights.
First, take the time to carefully read and review not only the reservation of rights letter, but also your insurance policy. You want to understand any references they make and the reasons behind the letter’s being issued.
Next, respond to the insurance company, sharing that you do not agree with its contents and the reasons why. If possible, correspond with your insurance company, so you have a written record of your interaction. Communicate that you will follow up with them and provide additional information supporting your claim.
For many, the advice and counsel of a denied insurance claim attorney is incredibly valuable. This professional can leverage their knowledge and experience, review the letter and policy for you, and help draft an appropriate response. They can also help respond to additional insurance company inquiries and determine what information to provide while protecting your best interests. In all cases, keep copies of everything you send to them, including any photographs or videos, medical records or witness statements.
Keep in mind that insurance companies take communication from attorneys very seriously.
How Can an Attorney Help?
Doug Terry Law Knows How to Respond to Reservation of Rights Letters
Engaging legal counsel if you have received a reservation of rights letter is the first step toward managing your response correctly, maximizing your settlement, and protecting your future.
Led by attorney Doug Terry, the team at Doug Terry Law has decades of experience representing individuals in dispute with their insurance companies. They are familiar not only with the technical language inherent in insurance policies, but also the strategies these organizations take to minimize their expenses. They can review your policy and determine if the reservations of the insurance company are, in fact, valid.
When the time comes, you may need to negotiate a settlement. Doug Terry and those with whom he works are skillful negotiators. While they leverage their past experience, they never lose sight of the specifics of each case. No two situations are identical.
Finally, if your insurance company’s actions are in bad faith, Mr. Terry and his team can file a lawsuit on your behalf. As aggressive litigators, they know what it takes to be successful in the courtroom. You can rely on them to handle your case from start to finish.
Schedule Your Free Consultation Today
As mentioned, time is a valuable commodity when it comes to reservation of rights notifications. You want to act quickly and responsibly so your insurance company does not think that you agree that your claim may not be valid.
Non-action often signifies agreement with the reservation of rights letter, something you want to avoid at all costs.
The team at Doug Terry Law appreciates this and recognizes the importance of insurance claims payments to their clients. Their reputation for communicating empathetically and successfully resolving insurance claim disputes is outstanding.
Contact them today at 405-463-6362 to schedule your no-cost consultation regarding the reservation of rights letter you have received. Immediate action today can positively impact your case and your life.
Attorney Doug Terry
After 25 years practicing in a larger firm, Doug chose to open his own practice in Oklahoma City. He brings his wealth of knowledge and his skills as a litigator to bear for his clients in matters of insurance bad faith, personal injury cases and class actions. He won $200 million and $25 million verdicts for clients in cases in which an insurer denied a health insurance claim. Doug has the distinction of being awarded a Martindale-Hubbell “AV Preeminent” rating from his peers in the legal community. He has also been selected as an Oklahoma Super Lawyer. [Attorney Bio]
