Generally, this reference describes a carrier's contemptuous conduct and unscrupulous greed in their effort to avoid paying a policyholder's just claim. Insurance policies are confusing, ambiguous and filled with loopholes by design - not just coincidence.
Comprehensive interpretation is difficult for trained professionals and rare for laypersons.
It 's also not unusual for insurers to offer promotional materials to help sell the policy that contain representations contrary to the policy that is actually issued. Prudent saving of any informational brochures and sales aids could prove valuable for future claims disputes. Benefits discrepancies between offers and actual delivered underwritten policies are particularly widespread with regard to umbrella coverage. The consequences of misrepresenting policy coverage in promotional material range from fraud-based punitive damages to bad faith liability. By law, these discrepancies must be interpreted in favor of the policyholder.