Unreasonable Delays? What to Do When Your Insurance Company Stalls Your Claim

January 20, 2025

Delayed Insurance Claim Payments Are Unacceptable

Do you find yourself checking your mailbox daily for your insurance claim payment that is late? If so, you are like many others in Oklahoma and across the country in asking the question, “Why do insurance companies delay claims?” Sadly, this issue is a regular occurrence: thousands of people deal with uncooperative insurance companies on a regular basis.

Individuals in this position find themselves dealing with a host of emotions and issues, all of which are valid. First, they are frustrated with the process, which seems more complicated than necessary. Many have paid their premiums on time and submitted their covered claim in accordance with their carriers’ requirements. It seems reasonable to expect their claim be paid in a timely manner. That begs a common question:

What can you do when your insurance company stalls your claim?

The answer is multifaceted.  Contrary to what many believe, you do have options when your insurance claim is unreasonably delayed. That said, taking action can be complicated and time consuming. Engaging the assistance of an insurance claims attorney may be in your best interests.

Legal Options for Addressing Delays

Recognizing Unreasonable Insurance Claim Delays

Insurance companies intentionally delay claims because they know the majority of their policyholders will accept their actions as the cost of doing business. To respond appropriately to these delays requires having a certain base of knowledge.

First, you must realize that sometimes claims are delayed because they are particularly complex or because your insurance company may be having issues with staffing and a high volume of claims to pay.

Sometimes, however, their reasons quite often are less than legitimate. By delaying paying claims these organizations hold on to your money longer, benefiting from the interest they earn on their assets. Additionally, many use delays as a tool to entice policyholders to settle for less money than they are actually entitled to receive.

What to Do When Your Claim Is Delayed

If your claim is delayed, there are steps you can take. Simply sitting back and doing nothing is not going to hasten the process and may even signal to your insurance company that you are okay with their slow response.

First, from the beginning, keep accurate records of all of your interactions with your carrier. This includes when and how your claim was submitted and as well as copies of any letters or emails discussing why your claim is delayed. If you speak with someone via phone, always recap the conversation in an email back to them and save copies of this correspondence. Make sure to always get the name, title and contact information for those at the company with whom you speak.

Second, don’t be afraid to address the issue directly. Ask them specifically why your claim is delayed. If they are missing information, you can provide it (but always keep copies of anything you submit, along with proof that they have received it). Sometimes delays are warranted. Perhaps they need additional information or are operating during a particularly busy time (like after a hurricane or other natural disaster). Other times their actions may simply be in bad faith. Examples of insurance company delay tactics that are made in bad faith include not responding to your correspondence, asking for documents that you have previously submitted, misrepresenting your coverage, and intentionally undervaluing your claim.

Track your correspondence with your carrier and be sure to follow up regularly. In times like this, persistence is a virtue.  If you are unsuccessful in getting a response, ask to speak with a manager or supervisor.

Finally, make sure you take time to review your policy in full.  In response to your timely payment of premiums, they have certain duties.  Violations may be cause for legal recourse.

Submitting a Letter of Appeal

In Oklahoma, insurance companies must respond to the receipt of your claim within 30 days. If you have not received a response, you may need to take action. In all cases, you should begin by reviewing your policy and its guidelines.  Additionally, take time to look at your submitted claim to ensure you complied with all requirements of your carrier.  If you made a mistake, you can resubmit your claim for payment.

Assuming you complied with all regulations, carefully review any responses from your insurance company and take time to review all of your claim’s details.

Once you have a complete understanding, draft an appeal letter for your claim.  Make sure this letter includes:

• All relevant data, including your name, date of birth, address, policy number, etc.
• Accurate information for the policyholder if it is a spouse/parent/partner
• A recap of your understanding of their reason for the delay
• The reason for your communication
• Relevant documentation (medical records, for example, for health insurance claims)
• Contact information for others that may be of assistance (for example, your physician).

Letters should always be direct and must be submitted in accordance with the requirements of your specific policy.  If you are required to mail your appeal letter, send it certified so you have a record of its receipt.

Engage Legal Representation

If you believe your claim has been unfairly delayed and your insurance company is acting in bad faith, engaging the advice and counsel of a seasoned bad faith insurance attorney may be a valuable next step.

Unfortunately, managing the claims process is complicated – and they make it purposefully so. An experienced attorney will know how to efficiently manage the process and get the answers you need.  Quite often, insurance companies will make payment on a delayed claim once they are contacted by a lawyer, because they know they no longer have the upper hand.

Your attorney can also help you identify, calculate and substantiate additional costs you have incurred as a result of the delay.

You may be entitled to these damages, in addition to legal fees, as you move forward with a bad faith lawsuit.

Doug Terry Law Knows How to Resolve Delayed Insurance Claims

We Understand and Appreciate the Impact of Claim Delays

The actions of your insurance company can have a significant effect on your physical, emotional and financial well-being. When insurance claim payments (regardless of type) are delayed, policyholders find themselves assuming financial responsibility, delaying necessary medical treatment, and facing even more serious life consequences.

In order to preserve their profitability, insurance companies regularly delay claim payments across all lines (such as health, property, and auto).  What you say and do can make a considerable difference when it comes to maximizing your settlement.

Our Team is Ready to Go to Work for You

Pursuing payment on a delayed insurance claim is both complicated and time consuming.  The assistance of an experienced and knowledgeable insurance claims attorney can make a very real difference in your settlement.

Years ago, Doug Terry founded his firm based on his desire to level the playing field between big insurance companies and everyday people. He saw, firsthand, how insurance company decisions affected their policyholders. Since then, he and his team have successfully handled countless delayed insurance claims. 

Doug Terry Law is known not only for its technical expertise, but also for their compassionate and responsive approach to service. As they focus on maximizing their clients’ settlements, they also strive to minimize the stress that goes hand in hand with delayed insurance claims and associated legal actions.  As bad faith insurance attorneys, they handle all aspects of the process, from reviewing initial claim submissions and policies to negotiations and representation.  Contact them today at 405-463-6362 to schedule a free consultation.