Strike up a round of applause for new laws to protect policyholders. The Consumer Insurance Act is designed to force insurance companies to send out claim money fast. In the past, these companies would routinely freeze claim checks because there were a few pieces of information missing. Policyholders weren’t withholding the information on purpose, but insurance companies didn’t care about reality — just the ability to hold back the money that that policyholders would need to repair after an insured event occurred. Car broken into? Sorry, you didn’t fill out all of the forms, therefore we’re going to freeze this money until you follow our rules. If we change them, too bad…you’re still going to have to take care of things on our terms…
So now the entire point here is to get things underway in a different setting. The Consumer Insurance Act is more than just about claim money.
It’s actually about making sure that insurance companies hold up their end of the bargain. After all, who wants to pay out all that money for insurance premiums for multiple insurance products, only to never really have the chance to use the insurance benefits when they really need them. Fraud aside, we think that everyone should be able to get the benefits that they’ve honestly been paying for. The insurance companies will have to be more transparent and make sure that they’re looking for the right questions. They can’t blame the consumer merely because they didn’t ask the right questions anymore, and that’s something that we’re definitely glad to hear about.
Not only is this not just about car or home insurance, it’s also not just about online insurance purchases. This new law puts into place protections for all of the different personal insurance policies out there. This also includes annuities, if you’re interested in those. You will also be pleased to find that it covers insurance polices purchased over the phone, online, and in any insurance office.
For now, insurance providers seem to welcome the new law, indicating to the media that they’ve had internal mechanisms for dealing with this problem for a long time. The law is meant to catch up with those practices. As new insurance providers enter the market though, they will have to work hard to adhere to these guidelines. Either way, today is a great day in terms of consumer protection.
Are you looking for a new insurance policy? From car to home all the way up to critical illness protection, it’s a good time to sit down and review the types of insurance that you honestly need. Why not check it out today? You’ll truly be glad that you did!