The insurance
regulatory agencies of most states (usually called the "Department of
Insurance" or similar name) have established procedures whereby
consumers who believe they have been subjected to unfair claims handling
can file a complaint against the offending insurance company. The
complaint will be investigated to determine if the company acted properly
and in a manner consistent with the state's insurance laws, including the
"Unfair Claims Practices" laws. In some cases, the investigation
may cause an insurance company to reevaluate its handling and disposition
of a claim. If a company is found to be in violation of the law, this
process also may result in a fine or other penalty being imposed on the
company by the Department of Insurance.
