Utah law gives policyholders powerful protection against deceptive, coercive, or bad-faith behavior by insurance companies. Under the Utah Administrative Code—specifically R590-190-9 and R590-190-12—insurers must follow strict standards when adjusting, evaluating, and settling claims.

Here is part 4 of 10 major practices that insurers in Utah are legally prohibited from using, along with expanded explanations to help you recognize violations.

Withholding Payment to Force Another Settlement

Independent Coverage Rules

Insurers must treat every coverage type independently. They cannot delay payment on one portion. This means they cannot influence another claim’s outcome. They cannot withhold payment to force another settlement.

Bad Faith Tactics

Insurance companies sometimes use illegal tactics to avoid paying claims. They may refuse medical benefits to force injury settlements. Some insurers withhold auto damage payments to pressure you into low total loss offers. They might also delay property coverage to make you accept liability.

Additional Delay Tactics

Watch out for other common delay payment strategies. Insurers might repeatedly ask for the same paperwork. They may ignore your phone calls and emails entirely. They might also offer a quick, lowball settlement. Do not let them wear you down.

The 30-Day Rule

Utah has a strict rule for claim payments. Liability must first be clear under one coverage. Once clear, the insurer must pay quickly. They must issue payment within 30 days. This timer starts after receiving valid proof. This proof is known as proof of loss.

Proof of Loss & Penalties

Proof of loss includes specific, written documents. Examples are medical bills or detailed repair estimates. If the insurer misses the 30-day deadline, they may face penalties. Utah law requires them to pay interest on late payments. This interest acts as a strict financial penalty for delays.

Need Legal Help With an Insurance Dispute?

Contact Attorney David Head

If your insurance company is delaying, denying, or undervaluing your claim, Attorney David Head can help you stand up to unfair practices and fight for the benefits you deserve. He can help combat insurers who withhold payment to force another settlement.

Whether your dispute involves auto, homeowners, health, life, disability, or commercial insurance, David has extensive experience navigating complex insurance litigation and negotiating with carriers who are acting in bad faith.

📞 Phone: 801-691-7511

David Head has spent years holding insurers accountable, challenging unlawful denials, and protecting Utah consumers and businesses from bad faith claim practices.