Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a qualified attorney to discuss your situation.
Detailed Answer
After a collision, insurers must investigate and pay valid claims promptly under Massachusetts law. If your insurer drags its feet or denies coverage without proper basis, you have several tools to challenge those tactics.
1. Identify Unfair Claim Settlement Practices
Massachusetts regulates insurer conduct under 211 CMR 74.00 (Unfair Claims Settlement Practices) and the Unfair Insurance Practices Act, M.G.L. c. 176D (Chapter 176D). Common violations include:
- Failing to acknowledge or act on a claim within 15 days of notification.
- Unreasonable delay in requesting documentation or issuing payment.
- Misrepresenting policy terms or coverage.
- Lowball settlement offers without justification.
2. Review Your Policy and File a Demand Letter
Read your insurance contract carefully, noting deadlines and coverage limits. If you believe the insurer is delaying or denying improperly, send a written demand letter:
- Reference the policy number, claim date, and key facts.
- Cite M.G.L. c. 93A (Massachusetts Consumer Protection Act) and 211 CMR 74.00.
- State you expect a substantive response or payment within 30 days to avoid a 93A lawsuit.
3. Document Every Communication
Keep records of all calls, emails, and letters. Note dates, times, the person you spoke with, and summaries of conversations. This timeline can prove unreasonable delay or bad faith in court or regulatory complaints.
4. File a Complaint with the Division of Insurance
The Massachusetts Division of Insurance enforces insurance statutes. To file:
- Visit mass.gov/division-of-insurance.
- Choose “Consumer Complaint Form.”
- Provide policy details and explain the dispute. Attach your demand letter and correspondence log.
5. Consider a Lawsuit for Breach of Contract and 93A Damages
If the insurer still refuses to pay, you may file suit in Superior Court or, for claims up to $7,000, in Small Claims Court. Under M.G.L. c. 93A §9, you can seek:
- Actual damages for delay or denial.
- Double or treble damages if the insurer acted in bad faith.
- Attorney’s fees and court costs.
Helpful Hints
- Send demand letters via certified mail to create a clear record.
- Review 211 CMR 74.00 to understand insurer obligations.
- Keep back-up copies of all repair estimates and medical bills.
- Be concise and factual in all correspondence.
- Act quickly: 93A demand letters require a 30-day notice period before suit.