Can an insurance company deny a claim?

In Arkansas, an insurance company is able to deny a claim if it believes the claim is invalid or for other specified reasons. Insurance companies must follow the policies outlined in their policy documents, and if these policies are violated they can deny the claim. Most insurance companies will review the circumstances of the claim and make a decision as to whether or not it is valid. The majority of claims are valid, but if there is fraud, misrepresentation, or negligence the claim may be denied. Insurance companies may also deny a claim if they believe the claim does not meet the terms of the policy, such as if the claim is for something not covered under the policy. Insurance companies may also deny a claim if they believe the amount of the claim is too high, or if they believe that the amount of the loss is not commensurate with the amount claimed. If an insurance company denies a claim, they must provide the policyholder with a written notice of denial that explains the reason for the denial. Policyholders who receive a denial of their claim have the right to appeal the decision and present their case for review. Policyholders may also contact the Arkansas Insurance Department for assistance in appealing a denied claim. It is important that policyholders understand their rights and take appropriate steps to protect them if they believe their claim was unfairly denied.

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Can an insurance company deny a claim?

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