Making the Decision to Defend
Insurance is considered a quasi-public utility, since modern industry and business could not effectively operate without it. The courts recognize the importance of insurers to the community as a whole and, therefore, find a need to more stringently control the actions of insurers. As illustrated by the decision in Egan v. Mutual of Omaha Insurance Co., 24 Cal. 3d 809, 819, 157 Cal. Rptr. 482 (1979), adjusters must always conduct a thorough investigation of every claim before making a decision to deny, or the insurers will find themselves forced to pay claims that are not covered because a court concludes the insurer acted in bad faith. Further, insurers can also be assessed a fine by the Department of Insurance for breach of the Fair Claims Practices statutes or regulations.
© 2020 – Barry Zalma
Barry Zalma, Esq., CFE, now limits his practice to service as an insurance consultant specializing in insurance coverage, insurance claims handling, insurance bad faith and insurance fraud almost equally for insurers and policyholders. He also serves as an arbitrator or mediator for insurance related disputes. He practiced law in California for more than 44 years as an insurance coverage and claims handling lawyer and more than 52 years in the insurance business. He is available at http://www.zalma.com and email@example.com.
Mr. Zalma is the first recipient of the first annual Claims Magazine/ACE Legend Award.
Over the last 52 years Barry Zalma has dedicated his life to insurance, insurance claims and the need to defeat insurance fraud. He has created the following library of books and other materials to make it possible for insurers and their claims staff to become insurance claims professionals.
Read posts from Barry Zalma at https://parler.com/profile/Zalma/posts
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