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 2 of 10 major practices that insurers in Utah are legally prohibited from using, along with expanded explanations to help you recognize violations.
Offering Far Less Than the Claim’s Real Value
One of the most common hurdles policyholders face is the “lowball” settlement. Utah explicitly prohibits insurers from offering these unfairly low settlements. It is critical to recognize the warning signs of a lowball offer, which typically occur when:
- Evidence contradicts the offer: Independent estimates show the claim is worth more than what the insurer is offering.
- Known repair costs are ignored: The insurer knows the actual repair costs exceed their offer, yet they refuse to adjust the amount.
- Valuations are manipulated: The insurer intentionally undervalues an auto claim to save the company money.
- There is no proof for the amount: The first offer is essentially a shot in the dark, with no reasonable basis in evidence or market data.
An insufficient offer is not usually a simple math error if there is evidence to support the claim. It is often a calculated tactic designed to pressure a claimant into accepting less than they deserve out of frustration or financial desperation. Utah law requires insurers to negotiate in good faith, use credible sources for their valuations, and provide the documentation that supports their numbers.
Real-World Example: Let’s say your car is totaled in an accident. You do your research and get independent valuations showing the vehicle is worth $12,500. However, the insurer comes back and offers you only $7,900 without providing any explanation for how they arrived at that number. That massive gap between the real value and the offer may be clear evidence of an unfair settlement tactic. This lowball offer might go against Utah Law.
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. He will 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. He challenges unlawful denials and protects Utah consumers and businesses from bad faith claim practices.