Detailed Answer
After a motor vehicle collision in Maine, insurers must handle claims promptly and in good faith. If your insurer delays or denies your claim without a reasonable basis, you may have recourse under state law. Follow these steps to challenge unfair tactics:
1. Understand Your Rights Under Maine Law
Maine law prohibits unfair claim settlement practices. Under Maine Revised Statutes Title 24-A §2446 (Unfair Claim Settlement Practices), an insurer may not:
- Unreasonably delay investigation or payment of claims.
- Deny a claim without conducting a reasonable investigation.
- Misrepresent policy terms or deny coverage without justification.
See the full text at 24-A M.R.S. §2446.
2. Document Everything
Thorough documentation is critical. Gather:
- Police reports and photos of the collision scene.
- Medical records and billing statements.
- Repair estimates and receipts.
- All written correspondence (emails, letters) with the insurer.
3. Send a Formal Demand Letter
Draft a clear demand letter outlining:
- The facts of the accident.
- Policy provisions supporting coverage.
- Itemized damages and supporting documentation.
- A deadline (typically 30 days) for insurer response.
Certified mail provides proof of delivery.
4. File a Complaint with the Maine Bureau of Insurance
If your insurer does not respond or continues to delay, file a complaint with the Maine Bureau of Insurance. They oversee insurer conduct and may investigate unfair settlement practices. Visit Maine Bureau of Insurance Complaints for instructions.
5. Consider a Civil Bad Faith Claim
Maine recognizes a civil action for insurer bad faith under Title 14 M.R.S. §1602. To bring a bad faith claim, you must show the insurer:
- Unreasonably denied or delayed payment.
- Knew or should have known there was no reasonable basis to deny coverage.
See 14 M.R.S. §1602 for elements of a bad faith action. Consult an attorney promptly to evaluate this option.
Helpful Hints
- Keep a claim journal: record dates, names, and details of every conversation with your insurer.
- Review your policy: know your coverage limits, deductibles, and exclusions.
- Meet all deadlines: adhere to statute of limitations (6 years for breach of contract under 14 M.R.S. §752).
- Seek a second opinion: obtain an independent appraiser for repair estimates.
- Consult a qualified attorney: to assess potential bad faith claims or lawsuits.
Disclaimer: This article is for educational purposes and does not constitute legal advice. Always consult a licensed attorney regarding your specific situation.