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

Discouraging You From Hiring an Attorney

Unfair Deterrence of Legal Representation

Insurers are legally prohibited from discouraging you from seeking legal counsel. They cannot say or imply that you do not need a lawyer. Adjusters must never claim that lawyers will only complicate the claims process. They also cannot warn that hiring an attorney will reduce your final settlement money.

The Motive Behind the Tactic

These statements constitute an unfair and deceptive insurance claims practice. Companies use these tactics to steer claimants away from professional legal advice. This often happens when an insurer knows a claim is valid or undervalued. Without legal help, you might accept a settlement far below what you deserve. Insurers want to protect their bottom line by minimizing your overall payout.

Your Legal Rights

You have a fundamental legal right to hire an attorney for insurance disputes. An insurance company cannot legally impede, obstruct, or discourage that right. For example, an adjuster might suggest a lawyer will take all your money. If they say you will lose part of your settlement, they violate Utah law. Such behavior directly breaches the implied covenant of good faith and fair dealing.

Protecting Your Interests

You should always document these types of coercive conversations immediately. Note the date, time, and the exact words the insurance adjuster used. You can report this unlawful behavior directly to the Utah Insurance Department. Having an attorney levels the playing field against large corporate legal teams. A lawyer understands complex policy jargon and protects your interests. Never let an insurance adjuster intimidate you into forfeiting your right to counsel.

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.

Whether your dispute involves auto, homeowners, health, life, disability, or commercial insurance, or your insurance is discouraging hiring an attorney, 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.