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 1 of 10 major practices that insurers in Utah are legally prohibited from using, along with expanded explanations to help you recognize violations.
Refusing to Pay Without a Reasonable Investigation
Utah law requires insurers to fully investigate a claim before denying it. That means:
- Reviewing all available evidence
- Speaking with the claimant when necessary
- Obtaining records, estimates, or expert opinions
- Not relying solely on internal guidelines or automated tools
An insurer cannot simply dismiss your claim because it’s complicated, expensive, or inconvenient. They must fully investigate every claim they receive. If the insurer denies your claim without asking for documentation, without inspecting damaged property, or without gathering relevant facts, this may qualify as an unfair claim settlement practice.
Example:
A homeowner submits a water damage claim. The insurer denies it within 24 hours without sending an adjuster or requesting photos. This is unlawful because the insurer failed to conduct a reasonable investigation.
Utah law also enforces a strict “duty of good faith.” Insurers must actively look for reasons to pay your claim. They cannot simply hunt for reasons to deny it.
Here is what else a thorough investigation requires:
Human Review is Mandatory Algorithms cannot replace a proper human review. Complex claims require actual people to assess the damage. A lightning-fast computer denial is a major red flag.
Transparency is Required Insurers must explain their decisions clearly. They cannot give you vague reasons for a denial. They must point to specific policy language.
What You Should Do: You have rights if an insurer cuts corners. Always keep a log of all communication. Save every email, letter, and phone record. Ask the insurer for a detailed, written explanation. Demand proof that they fully investigate the claim.
Taking Action You can fight back against an unfair denial by consulting an insurance bad faith attorney. Legal action can hold the insurance company accountable.
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, 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.