Critical Steps Even If You Think There Is No Coverage: Safeguards Against High Anxiety
The standards by which your investigations are conducted, the manner in which and reasons for which you denied coverage, your awareness or lack of awareness of code provisions in handling claims (e.g., WAC 284-30, et seq.), internal e-mails, and attorney work product are all potentially discoverable and could demonstrate that you acted in bad faith when denying a claim. Even if you are correct that the claim is not covered, if you do not investigate, document, reserve your right to deny, and timely deny a claim you could be liable for bad faith or a Consumer Protection Act violation. View full article (PDF).