When you file an insurance claim, it may seem simple at first. But when the assessment begins to feel intrusive or overwhelming, you might wonder what you can do. Fortunately, Nevada law establishes firm boundaries on how these companies can act during the review process.
What is the scope of the investigation?
After you file a claim, your insurance company has the right to verify what you reported. This usually means checking your policy, asking for records and talking to people tied to the loss or injury.
As the evaluation continues, the insurer may request that you provide a recorded statement or attend an Examination Under Oath (EUO). Because an EUO is a formal legal proceeding conducted under penalty of perjury, consulting with an attorney is worth considering before giving a statement.
Are there any limits to this scope?
Under Nevada law, an insurer cannot misrepresent what a policy covers, fail to act on a claim in a reasonable amount of time or deny a claim without first conducting a thorough review.
While federal privacy laws such as the Health Insurance Portability and Accountability Act (HIPAA) are designed to protect your medical records, an insurance company can still access information you choose to authorize. For that reason, it is worth taking a moment to read any medical authorization forms before signing.
How can you respond when an evaluation crosses the line?
If you believe an insurer has acted unfairly during a review, you can file a complaint with the Nevada Division of Insurance. The division regulates insurer conduct and can step in to investigate violations of Nevada’s fair claims practices.
You may also have the right to file a bad-faith insurance case in civil court. Grounds for this lawsuit include when an insurer fails to handle your case in a timely way, denies a valid claim without a solid reason or uses the process to push you toward a lower payout.
Damages in a successful bad-faith case can go beyond the original policy amount. Nevada law allows courts to award additional compensation for your resulting financial losses.
