Dude, Where’s my Check?

I felt prompted to write this post after several of my clients asked for an update on where their insurance checks are. This would not be unusual were it not for the fact that almost all of my clients who call to complain about where their insurance checks are have the same insurance company. Let's call that insurance company "Company X". These clients, who are not only my clients, but Company X’s clients, often call my office weekly. Sometimes every other day. Which, of course makes practitioners like me look like we aren't doing enough.

But that doubt does lend itself to the question of why insurance companies don't pay policyholders when they are legally obligated to. I'm not talking about paying after a trial, when the losing party will likely move for a new trial and are legally entitled to raise an appeal. I'm talking about clients asking where their settlement checks are overdue based on a confidential settlement agreement with specific terms written on Company x's own confidential release on when such settlement checks should be due. Even worse, it has taken me months (and I’m not exaggerating) to navigate figuring out how to get Company X to reissue an undisputed check that has expired. This is not the rule to all insurance companies. This is an exception to that rule.

I have had to suspend my disbelief when it comes to Company X. But that isn’t enough for the policyholders--those most affected by the delays in issuing checks when they are due. I have clients who need new insurance but are unable to do so until their open claim is closed. Imagine either not having insurance when the new hurricane season is among us, or having force placed insurance solely because Company X has dropped you, hasn’t paid you, and you can’t get new insurance unless and until the claim is paid and closed out. So, what exactly can lawyers do when an insurance company routinely fails to pay its policyholders when required to do so under a confidential settlement agreement or when an originally issued check has expired?

Let me break down our limited options.

1. Follow up with my last opposing attorney on the check.
2. Follow up with Company X’s direct line to ask for a status on the check.
3. File a motion to enforce the settlement agreement and for sanctions and to request statutory interest.  Set a hearing on that motion and hope to get an order and sanctions against Company X.
4. Fill out a Notice of Intent to Litigate (“NOITL”) required by Fla. Stat. 627.70152 in attempt it gets routed to the correct department, which delays the issuance of the check even further because the carrier legally has ten (10) business days to respond to the basis under which the NOITL was filed.

Option 3 usually is the most effective, but the policyholders shouldn't even be in this position to begin with. Option 3 comes with further delays of having to set the motion for hearing (perhaps 2 weeks after filing), at which time the Court may not penalize Company X for delaying check payments with sanctions, but can only award statutory interest the accrues under Fla. Stat. § 627.4265.

This is the game we play and the risks Company X takes. It’s as if Company X is daring policyholders to file motions for sanctions because Company X thinks the numbers work in their favor. The delays are unacceptable and frequent. The people hurt most are the policy holders. Unfortunately, we as attorneys don’t make the laws, we can only act in accordance with them and hope Company X does the same. Until that time, I will continue to suspend my disbelief, but can assure all my clients that we have done everything legally possible to get you the relief you deserve.

This blog post was prepared by J. Lindsey Chong in her personal capacity. The opinions expressed in this article are the author’s own and do not reflect the view of all attorneys that represent policy holders nor the actions of all insurance carriers.