It's no secret that some insurance companies delay payments in order to keep your money longer. With the economy in a recession, many legal experts are saying that insurers are using delay tactics more than ever before to make their bottom lines look better than they really are.

How the recession may affect your claim payment

Many say that the government-sponsored financial bailouts of large companies such as Citicorp and AIG, along with the volatility of the stock market, are signs of what the future may hold. But how does that affect something like your insurance claim payment? Actually, quite simply. Large insurance companies, like any other large companies, are in business to make profits and provide returns to their stockholders. One way to do that is by having a strong bottom line. However, the more claims a company pays, the weaker its bottom line appears. This may translate into insurance companies using delay tactics to hang onto your claim payment as long as possible - and that equates to bad faith.

How to combat bad faith insurance practices

How do combat bad faith insurance practices? One of the first things you can do is to send your information by registered mail, or scan it and send it by email if allowable, so that there is no question that it was received. Another thing you can do is to make sure that every conversation ends with a "plan." For example, when talking with your claims representative, finish the call (or email) by repeating who's going to do what and when - and then follow up if your insurer drops the ball. We always say that the squeaky wheel gets the grease, but be careful not to squeak too loudly or your claim may simply go the bottom of the pile.

What if your insurer goes bankrupt?

This is a common question in today's economy. However, if your insurance company goes bankrupt, your state probably has a maximum limit that it will pay on your claim. To find out how your state handles these matters, contact your state insurance department. The National Association of Insurance Commissioners has links to every state's insurance department on its website at www.naic.org/. Look under States & Jurisdictions. If you have questions about your insurance policy or if your insurer is using delaying tactics, contact a bad faith insurance attorney to discuss your situation and evaluate your options. As always, consultations are free of charge, without obligation and are absolutely confidential.