Detailed Answer
Disclaimer: This information is educational only and is not legal advice. Consult a licensed attorney in Montana about your specific situation.
If an insurance company has provided a “final offer” after you were injured, you can take several steps under Montana law to challenge that offer. The basic route is: preserve evidence, review the policy and valuation, pursue the insurer’s internal appeal and any contract remedies (such as appraisal or arbitration), file a consumer complaint with the state insurance regulator, and—if warranted—file a civil claim in court. Below is a practical, step-by-step explanation of how to contest the offer and what laws and resources apply.
1. Preserve evidence and document everything
- Keep all medical records, bills, receipts, photos of injuries and property damage, repair estimates, wage statements showing lost income, and any treatment notes.
- Save every communication from the insurer (emails, letters, recorded phone logs). Note dates, names, and what was said.
2. Review your insurance policy carefully
Look for provisions that affect dispute resolution: time limits for filing suit, an appraisal clause for property damage, binding arbitration requirements, or required notice procedures. Those policy terms govern what steps you can take under the contract, so follow them exactly.
3. Request a detailed explanation of the offer
Ask the insurer in writing to explain how it calculated the final offer. Request copies of any reports, medical reviews, recorded statements, and damage appraisals relied on by the insurer. Insurers must provide the basis for their decisions so you can evaluate whether the offer is reasonable.
4. Prepare and send a written demand or appeal package
- Assemble a concise demand package that includes: a cover letter, itemized damages (medical bills, lost wages, property repair estimates), medical records, medical provider statements, and other supporting documents.
- Send the package by certified mail or another trackable method and set a firm response deadline.
5. Use the insurer’s internal appeal or supervisory review
If initial adjusters deny or underpay your claim, request a supervisory review or an appeal within the company. Escalation often forces a re-evaluation and can lead to improved offers.
6. Invoke contract remedies if available (appraisal/arbitration)
If your policy contains an appraisal clause for property damage, that clause usually provides an independent valuation mechanism. If the policy requires arbitration for disputes, you may need to follow those procedures before suing. Follow the exact steps and deadlines in the policy.
7. File a complaint with the Montana insurance regulator
If the insurer refuses a reasonable resolution, you can file a complaint with the Montana Commissioner of Securities and Insurance (CSI). The CSI reviews consumer complaints about claim handling and may investigate unfair claim settlement practices.
Montana Commissioner of Securities and Insurance: https://csimt.gov/
8. Consider a civil lawsuit for breach of contract or bad faith
If the insurer’s handling violated the policy or Montana law, you may have a lawsuit for breach of contract and, in some cases, extra-contractual or bad faith damages. Before filing suit, confirm any deadlines in the policy and state law so you do not lose your right to sue.
9. Watch statutory deadlines
Civil claims and insurance-related claims have time limits. You must take action before applicable deadlines expire. For information on Montana statutes governing civil actions and insurance, see the Montana Code Annotated:
- Montana Code Annotated, Title 27 (Civil Actions and Limitations): https://leg.mt.gov/bills/mca_toc/ (see Title 27)
- Montana Code Annotated, Title 33 (Insurance): https://leg.mt.gov/bills/mca_toc/ (see Title 33)
Because statute sections and deadlines can be complex, consult an attorney promptly so you do not miss a filing limit.
10. When to hire an attorney
Contact an attorney if any of the following apply:
- The insurer refuses to explain or document its valuation;
- The insurer’s final offer does not cover documented medical costs or wage loss;
- The case involves permanent injury, substantial future medical needs, or significant lost earnings;
- You believe the insurer acted unfairly or in bad faith.
An attorney can evaluate your claim, send an effective demand, represent you in appraisal or arbitration, file suit if needed, and preserve evidence and deadlines.