“My insurance company seems to be using delay tactics. They keep asking for the same information over and over. They say they are still processing my records, and they still have not made a decision on my long-term disability claim. Now they tell me they need more information. Why are they doing this, and are they allowed to do this?”
As to whether they are allowed to engage in delay tactics, the answer is yes. ERISA rules and regulations allow insurance companies to invoke automatic extensions of time to make a decision. All the disability insurance company has to say is that it doesn’t yet have all the information it needs.
How Delays Benefit the Insurance Company
As for why they do this, there are a couple of reasons:
- First, insurance companies do not like to pay out on claims. It hurts their financial bottom line. The more premium money they keep, the better the insurance companies look to their investors.
- Second, it is a tactic to “starve you out.” They know you are without the income from disability insurance, and they know that some claimants go back to work—any kind of work—to pay the bills.
- Finally, they also know that many workers who become disabled are too sick and tired to put up a fight, and that many claimants will simply give up.
Don’t give up. Don’t give them the satisfaction. If you need help with your claim, call us at (888) 321-8131.
