Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a qualified attorney to discuss your specific situation.
Detailed Answer
When your insurer stalls or refuses to pay for a covered collision claim in New York, you have several tools to challenge unfair practices. Under New York’s Unfair Claims Settlement Practices Act (Insurance Law ”,”4. Send a formal demand letter. Cite Insurance Law
1. Review Your Policy Carefully
Identify all relevant deadlines and coverage provisions. Note any appraisal or arbitration clauses. Ensure you comply with notice and proof-of-loss requirements.
2. Demand a Written Explanation of Delay or Denial
Under Insurance Law
3. Send a Formal Demand Letter
Draft a letter citing Insurance Law
4. File an Administrative Complaint
If the insurer still stalls, file a complaint with the New York Department of Financial Services: dfs.ny.gov/complaint. The DFS enforces Insurance Law Article 26 and can investigate unfair claims practices.
5. Initiate Arbitration or Appraisal
Many auto policies include appraisal or arbitration clauses to resolve valuation disputes. Follow your policy’s procedure to trigger the appraisal panel or arbitration hearing.
6. Sue for Breach of Contract and Bad Faith
Under Insurance Law
7. Track Deadlines Carefully
The statute of limitations for breach of an insurance contract in New York is six years under CPLR 213. Act promptly on your demand letter and any administrative deadlines.
Helpful Hints
- Keep a paper trail: document all calls, letters and emails with your insurer.
- Send all demand letters by certified mail with return receipt requested.
- Review your policy’s definitions to confirm covered losses.
- Consult publicly available guides from DFS: dfs.ny.gov/industry_guidance.
- Consider hiring an attorney early if delays continue beyond 30 days.