The North Carolina Department of Insurance (DOI) issued an advisory emphasizing the necessity for auto insurers to expedite their claims processing, due to recent increases in consumer complaints about significant delays in handling supplemental damage estimates, diminished value claims and general communication about claim statuses.
Delays in processing these claims can lead to severe financial and emotional distress for consumers. According to the DOI, such delays are not only inconvenient but also undermine consumer confidence in the insurance industry.
"Insurers must minimize claim resolution delays to ensure that consumers receive the coverage and compensation they are entitled to under their insurance policies," the DOI stated.
The advisory bulletin specifically highlights several unfair claims practices identified under General Statute § 58-63-15. These include failing to acknowledge and act promptly on communications regarding claims, not adopting reasonable standards for prompt investigation, refusing to pay claims without a reasonable investigation, and not attempting in good faith to effectuate prompt, fair settlements when liability is clear.
Additionally, Chapter 4 of Title 11 of the North Carolina Administrative Code further outlines practices related to motor vehicle damage claims that, if violated, constitute prima facie violations of the statute. These practices, the DOI warned, erode consumer trust and confidence in the insurance industry.
The department urged all licensed insurers in North Carolina to prioritize the prompt handling and settlement of auto insurance claims. Insurers are also encouraged to address any systemic issues that contribute to delays in resolving claims.
The DOI made it clear it will monitor insurer practices closely and will take appropriate enforcement action against any insurer found in violation of state laws. "The Department appreciates insurers' immediate attention to this issue," the advisory concluded.
For further inquiries, the DOI's Consumer Services Division can be reached at CSD@ncdoi.gov or 855-408-1212.
