What to do when your insurer stops communicating or threatens to close your claim

Short answer: Keep records, demand a written status, preserve your claim file, file a complaint with the Montana Commissioner of Securities and Insurance if needed, and consider hiring a lawyer (or a public adjuster) if the insurer acts unreasonably. This is general information and not legal advice.

Detailed Answer

1. Stay calm and document everything

Start a single file (digital or paper) that contains every communication with the insurer: names of people you spoke with, dates and times, what was said, copies of emails, letters, photos of damage, invoices, estimates, and receipts. Note phone call details immediately after the call.

2. Review your policy so you know what’s covered

Read the sections on “claims,” “proof of loss,” deadlines, and any notice requirements. Your policy controls your contract with the insurer. If you can’t find needed provisions, request a full copy of the policy in writing from the insurer.

3. Request a written status and, if threatened, a written explanation

If the insurer refuses to give timely updates or verbally says it will close your claim, send a written request for a current status and for the insurer to put any proposed closure in writing. Use certified mail or email and keep proof of delivery. A written demand makes it harder for the company to claim you were told something different.

4. Ask for the claim file and the reason for closure

Ask for a copy of your claim file, including internal notes, estimates, and any studies relied on. In Montana you can complain to the state’s insurance regulator if you suspect unfair claim handling—see below for how to contact the regulator.

5. Provide outstanding documentation quickly

If the insurer says it will close the claim for lack of information, make a reasonable, good-faith submission of the missing items immediately. Keep records showing when you sent documents and how.

6. Escalate inside the company

Ask to speak with the claims supervisor or manager and request a final written decision with reasons. Escalation sometimes resolves delays without outside action.

7. File a complaint with the Montana regulator

If internal escalation fails, file a consumer complaint with the Montana Commissioner of Securities and Insurance. The regulator can investigate delays, review whether the insurer followed Montana insurance laws and regulations, and sometimes prompt a response from the company. For general regulatory information and to find complaint instructions, see the Montana Commissioner of Securities and Insurance: https://csimt.gov.

8. Consider an appraisal, independent adjuster, or attorney

If the claim involves disputed damages or coverage and the insurer threatens closure despite your compliance, you can:

• Request appraisal or dispute resolution provided in the policy (if any).
• Hire a licensed public adjuster to document and negotiate the loss.
• Consult an attorney experienced in insurance claims if you suspect bad faith, improper denial, or if the claim is large. A lawyer can advise on Montana-specific remedies and litigation.

9. Be aware of potential legal claims but don’t assume they apply

Montana’s insurance laws and regulations protect policyholders from unfair claim settlement practices. If an insurer unreasonably refuses to investigate, delays unfairly, or closes a claim without cause, you may have administrative remedies (complaint to regulator) and, in some cases, civil claims. Always talk to an attorney before asserting a legal claim; this article is educational and not legal advice. For a starting point on Montana insurance law topics, see Montana’s statutes (Title 33): https://leg.mt.gov/bills/mca/.

When to file a complaint with the Montana Commissioner of Securities and Insurance

File a complaint when:

• The insurer refuses to provide a written status or repeated requests go unanswered.
• The insurer threatens closure without explaining what you can do to keep the claim open.
• You received a denial or close notice that appears inconsistent with your policy.

The regulator cannot give legal advice but can investigate consumer complaints and may order corrective action or mediation.

Sample short written demand you can send

To: [Claims Department]
Insurer: [Company Name]
Claim No: [Number]

Please provide, in writing, the current status of my claim and any specific reasons you intend to close this claim. Please also provide a copy of my claim file and identify any additional documentation you require from me to keep this claim open.

I request your written response within 10 business days of receipt of this letter.

Sincerely,
[Your Name]

Helpful Hints

• Always follow up important phone calls with a short email summarizing the conversation and asking the company to confirm or correct your summary.
• Keep copies of everything and build a timeline of events. Timelines are persuasive to regulators and lawyers.
• Send important correspondence by certified mail and keep tracking receipts.
• If the insurer asks for forms or proof, provide a complete response quickly and keep proof of submission.
• Don’t sign general releases or broad language that could waive future claims without knowing the full effect.
• Ask for any denial or closure to be in writing with a clear explanation and references to the policy provisions relied on.
• Be mindful of any deadlines (policy notice requirements or statute of limitations). If in doubt, consult an attorney promptly.
• Use the state regulator as a resource: Montana’s insurance rules are in Title 33 of the Montana Code Annotated. Regulator contact: Montana Commissioner of Securities and Insurance.

Disclaimer: This article provides general information about handling insurance communication problems in Montana. It is not legal advice, does not create an attorney-client relationship, and may not reflect the most current law. For personalized legal advice, consult a licensed Montana attorney.