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After a motor vehicle collision, insurers often face pressure to settle claims promptly. Under North Dakota law, your insurer must process, investigate, and pay eligible claims without undue delay or denial. You have rights if your insurer engages in unfair claim practices.

Unfair Claim Practices Under NDCC 26.1-04-04

North Dakota Century Code section 26.1-04-04 prohibits insurers from engaging in unfair claims settlement practices, including willful delays or refusals to pay valid claims. Specifically, an insurer may not:

• Fail to acknowledge communications within 15 days.
• Unreasonably delay investigation or payment.
• Misrepresent policy provisions or claim requirements.
• Fail to provide a reasonable explanation for denial.

For full text, see NDCC 26.1-04-04.

Steps to Challenge Insurer Delay or Denial

1. Review your policy and claim file. Confirm coverage details, deadlines, and your insurer’s written reasons for delay or denial.
2. Document all communications. Keep detailed notes, copies of letters, and emails. Note dates and times of phone calls and the names of representatives you speak with.
3. Send a formal demand letter. Outline your claim, reference the relevant policy sections and NDCC 26.1-04-04, and set a deadline (e.g., 20 days) for response.
4. File a complaint with the North Dakota Insurance Department. Visit nd.gov/ndins to submit an online complaint. The Department may investigate and enforce sanctions.
5. Request appraisal or mediation. If your policy includes an appraisal clause, use it. For Personal Injury Protection (PIP) disputes, consider mediation under ND PIP rules.
6. Take legal action. If the insurer still delays or denies your claim, you can file a lawsuit. Small claims court handles disputes up to $12,000. For larger claims, file in district court. A successful claim may include the owed benefits, interest, and statutory penalties.

Helpful Hints

• Maintain a dedicated file for your claim, including all correspondence and bills.
• Use certified mail or email read receipts for important notices.
• Understand your policy’s deadlines for lawsuit filings, typically within two years after loss under NDCC 26.1-24-02.
• Consult free resources at the ND Insurance Department to learn complaint procedures.
• Consider seeking legal counsel if your claim exceeds the small claims limit or if you face complex denials.

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney to address your specific situation.