Disclaimer: This is educational information, not legal advice. For advice about your situation, contact a licensed attorney.
Detailed Answer
When an insurance company refuses to keep you updated or threatens to close your claim, you should act quickly and methodically to protect your rights and preserve evidence. Under Minnesota law, insurers must handle claims in a fair and timely way. If an insurer unreasonably delays, denies, or fails to communicate, those actions may violate Minnesota’s consumer protection provisions for insurance companies. For an overview of Minnesota’s laws on unfair insurance practices, see Minnesota Statutes, Chapter 72A: https://www.revisor.mn.gov/statutes/cite/72A.
Immediate steps to take
- Get basic claim information in writing. Ask for the claim number, the adjuster’s name and contact details, the reasons for any threatened closure, and any deadlines (for example, a required proof-of-loss date). If the insurer speaks with you by phone, follow up the call with an email or letter summarizing what you were told.
- Document everything. Keep a timeline with dates, times, names, and summaries of conversations. Save emails, letters, photos, repair estimates, receipts, and any documents the insurer sends.
- Request a written explanation. If the insurer threatens to close your claim, ask for a written explanation of the basis for that decision and any steps you can take to prevent closure (for example, submitting additional documents or scheduling inspections).
- Provide any requested proof promptly. If your policy requires a proof of loss or other documentation, submit it as soon as possible. If you cannot meet a deadline, request a short written extension and explain why you need it.
- Send a formal status request. If you receive poor or no communication, send a concise written status request by email and certified mail (return receipt requested). Say you are asking for a current status, the expected timeline, and a written explanation of any deficiency the company cites.
When to involve the Minnesota Department of Commerce
If the insurer continues to ignore you, refuses to provide a clear reason for closing the claim, or you suspect unfair or deceptive practices, file a complaint with the Minnesota Department of Commerce’s insurance consumer services. The Department accepts complaints about mishandled claims and can investigate insurer practices: https://mn.gov/commerce/consumers/file-a-complaint/. The Department can often request additional information from the insurer and advise you about next steps.
When to consider legal help
Consider consulting an attorney if the claim involves substantial damages, if the insurer denies coverage without a clear reason, or if you receive an unexplained or unreasonable threat to close your claim. An attorney can:
- Review your policy and insurer communications.
- Send a demand letter that summarizes the facts, cites policy language, and requests a specific response by a set date.
- Advise if you may have a bad-faith or breach-of-contract claim and explain remedies available under Minnesota law.
Possible remedies and processes
Depending on the facts, your options may include:
- Working with the insurer to submit missing information and reopen the claim.
- Using any appraisal, mediation, or arbitration process the policy requires.
- Filing a complaint with the Minnesota Department of Commerce to request an agency review.
- Pursuing a lawsuit for breach of contract and, in some cases, bad faith or unfair claim practices under Minnesota law.
Helpful Hints
- Keep a single organized file (paper and/or electronic) with every communication, estimate, receipt, photo, and policy page.
- Always follow up phone calls with a short confirming email or letter that restates what was discussed and requested.
- If you are asked for documents you don’t have (for example, a police report), explain why and provide what you can; ask for specific alternative evidence the insurer will accept.
- Use certified mail for important notices (e.g., if you officially dispute a closing decision). Certified mail gives you proof the insurer received your correspondence.
- Ask the insurer for a hard copy of the policy declarations and any endorsements if you don’t have them. Coverage often turns on policy wording and endorsements.
- Before signing a full release or settlement, have a lawyer review it. A signed release usually prevents you from pursuing additional payment later.
- If the insurer claims it will close for inactivity, ask whether reopening is allowed and what triggers reopening (new evidence, inspections, or third‑party submittals).
- File a regulatory complaint early if you see troubling conduct. The Department of Commerce can often obtain records from the insurer and identify pattern problems.
Useful links
- Minnesota Statutes, Chapter 72A (Unfair Insurance Practices): https://www.revisor.mn.gov/statutes/cite/72A
- Minnesota Department of Commerce — file a complaint and consumer resources: https://mn.gov/commerce/consumers/file-a-complaint/
Act promptly, preserve evidence, and use written communications to build a clear record. If the claim involves substantial money or you suspect unfair conduct, consult an attorney who handles insurance disputes in Minnesota.