Legal Question in Insurance Law in California

Late denial of claim

Two years ago I hit a parked car with a rental truck damaging its bumper. I had purchased the insurance the truck company offered. Upon speaking to their representative, I promptly summitted the claim to the insurance company, filled out all the paperwork they sent me and was told that the matter would be taken care of. Six months later I received a letter from the insurance company saying that the claim was not covered if I had other insurance and that I or my other insurance company owed them $900. I sent them a certified letter with return reciept saying that I would not pay them any money until I had documentation of the costs and something from them stating that was all the money I owed them. A year went by and then I started getting calls from a collection agency. Can a company "take back" a claim that they have agreed to settle? If I am required to pay, am I not entitled to receive documentation?


Asked on 9/28/00, 1:28 am

2 Answers from Attorneys
Joshua Genser Joshua G. Genser, Attorney at Law

Re: Late denial of claim

I think you have acted very professionally in this

matter. Of course you're entitled to the information

you've asked for. However, no amount of reasonableness

on your part will get the collection agency off

your back; they're not paid to be reasonable, only to

collect. Send them a written letter outlining your position and your deands for proof of

what you allegedly owe. If you're not convinced

after reviewing the materials they send you that you owe the money, tell them that

in writing. After that, ignore them unless they

make an adverse mark on your credit rating or sue you.

If either of those things happen, consult with an attorney.

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Answered on 10/26/00, 12:48 pm
John Hayes The John Hayes Law Offices

Re: Late denial of claim

I would like to add a few comments to the answer previously posted. If an adverse mark is put on your credit you should send a copy of the letter you sent to the collection agency to a credit reporting agency ie: equifax informing them of your situation and that you are refuting the mark on your credit. What the agency is required to do is check into the matter and provide you with proof of the debt. You may also want to contact your insurance agency and tell them the situation. They may be able to provide you with proof of non coverage of a rental vehicle which you can send to the original insurance company. Or, if you are covered on a rental car by your insurance company they are required to pay the amount due and they will also demand verification of the amount owed. If you are served with a lawsuit you need to file a legal answer within 30 days of receiving the lawsuit. You should definately contact a lawyer in this situation. Failure to file an answer within the allotted time can cost you a lot more money.

Sincerely,

John Hayes, Esq.

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Answered on 10/29/00, 11:50 pm


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