Tennessee: Steps to Take When an Insurance Company Stops Communicating or Threatens to Close Your Claim

Detailed Answer

If your insurance company stops providing status updates or threatens to close your claim, act quickly and systematically. Tennessee law gives you options to protect your rights, and the Tennessee Department of Commerce & Insurance (TDCI) can help when carriers do not follow fair-claims practices.

Immediate steps to protect your claim

Get communications in writing. Ask the adjuster to confirm any status update, deadline, or threat to close the claim in writing (email or letter). Written records are critical if you later need to complain or sue.
Document everything. Keep a log of phone calls (date, time, who you spoke with, summary), copies of emails, letters, estimates, proof-of-loss forms, photos, and receipts for repairs or mitigation. Save voicemail and take screenshots when appropriate.
Send a written demand for status. Send a concise certified letter or email requesting a current status, an explanation for any delay, and a date by which the carrier will either pay, deny, or request additional proof. State that you expect a response in a specific short time frame (e.g., 10–14 days).
Respond promptly to requests for information. If the insurer asks for additional documentation, provide it quickly and keep proof of delivery. Missing or late documents can be used as a reason to close a claim.
Ask about extensions and appraisal or dispute procedures. If the carrier threatens to close for inactivity, ask whether you can get a written extension or whether the policy has appraisal/mediation procedures you can invoke to preserve the claim.

Know your regulatory and legal options in Tennessee

In Tennessee, insurers must follow state insurance laws and fair-claims rules. If the carrier refuses to communicate, misrepresents facts, or unreasonably delays payment, you can:

File a consumer complaint with the Tennessee Department of Commerce & Insurance (TDCI). TDCI reviews complaints and may investigate insurer practices. File online or by mail: https://www.tn.gov/commerce/insurance/consumer-resources/file-a-complaint.html.
Refer to Tennessee’s statutory rules on unfair claims practices. Tennessee law prohibits unfair or deceptive claims handling by insurers. See the Tennessee Code on unfair claims practices: Tenn. Code Ann. § 56-8-104 (and related provisions in Title 56).
Consider contractual remedies. If your policy has an appraisal clause, mediation, or arbitration, those procedures can force a valuation or keep the claim active while you dispute the carrier’s actions.
Preserve deadlines. Keep an eye on any policy deadlines (proof of loss, suit limitations). If the insurer threatens to close the claim, ask for a written extension or note the date and use that date in complaints or legal filings to show prejudice if needed.

When to escalate to a lawyer

Contact an attorney if:

The insurer denies coverage without a reasonable explanation, or refuses to communicate about a legitimate claim.
You believe the carrier acted in bad faith (e.g., intentional, unreasonable delay; misrepresentation; or refusal to pay benefits clearly due under the policy).
Damages are large or the insurer’s behavior may have caused additional losses (for example, delayed payments prevented timely repair and led to more damage).

An attorney can send a demand letter, advise whether you have a bad-faith cause of action under Tennessee law, and represent you in settlement negotiations, appraisal, mediation, or litigation.

Sample short written demand (use your facts)

Below is a brief template you can adapt. Send by certified mail or email and keep a copy.

To: [Claims adjuster name & company]
Policyholder: [Your name] 
Claim #: [Claim number]
Date: [Date]

I request written confirmation of the current status of my claim and a clear explanation for any outstanding items preventing resolution. Please provide your response in writing within 10 days and include the date by which you will pay, deny, or request additional documentation.

If I do not receive a timely response, I will file a complaint with the Tennessee Department of Commerce & Insurance and consider other remedies available under the policy and Tennessee law.

Sincerely,
[Your name and contact information]

What TDCI can do for you

TDCI handles consumer inquiries, collects complaint data, and enforces insurance rules. They can request that the company respond to your allegations and may assess penalties for unfair practices. File a complaint here: TDCI file-a-complaint.

Practical outcomes to expect

Often, a brief written demand or a TDCI complaint prompts the carrier to re-open communications or provide an explanation.
If the insurer has a valid reason to close (e.g., missing proof of loss), supplying the needed information usually reactivates the claim.
If the carrier acted unreasonably or in bad faith, you may recover policy benefits plus additional damages or attorney fees depending on the facts and applicable law.

Important statutory resources

Tennessee Department of Commerce & Insurance — Consumer complaint and resources: https://www.tn.gov/commerce/insurance/consumer-resources/file-a-complaint.html
Tennessee Code (insurance unfair-claims practices): Tenn. Code Ann. § 56-8-104 (see Title 56, Chapter 8 for related provisions)

Helpful Hints

Always get deadlines and threats to close a claim in writing.
Keep one organized file (digital and physical) for all claim materials.
Use certified mail or read-receipt email for key documents.
Don’t ignore reasonable requests for proof of loss — provide them promptly but keep copies.
If the insurer is slow to respond after you follow up in writing, file a complaint with TDCI before time runs out to preserve leverage.
Ask whether your policy includes appraisal or dispute-resolution clauses — those can be faster and cheaper than full litigation.
Be careful with social media; insurers sometimes use public posts against claimants.

Disclaimer: This article is educational and informational only. It is not legal advice. For advice about your specific situation, consult a licensed Tennessee attorney or contact the Tennessee Department of Commerce & Insurance.

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