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Are insurance companies playing fair?

A recent article illustrates yet another example of the resources available to insurance companies. 

Specifically, the resource is a database called the Comprehensive Loss Underwriting Exchange. The database is somewhat analogous to a credit report in that it collects claim histories on homeowners and car insurance policies. 

The CLUE database is owned by LexisNexis. However, if an insurance company contributes to the database by providing loss history about its customers, it may be granted access. That, in turn, allows insurance companies to prepare CLUE reports on prospective or existing customers to determine how much to charge for car and home policies. 

When a dispute between a policyholder and an insurance company arises, an attorney may be needed to balance the odds. For starters, an insurance company has the resources to conduct elaborate studies, extensively investigate facts, and prepare an elaborate legal defense to any claims. A CLUE report is just one example of the shared knowledge and information available to insurance companies.

Fortunately, an attorney that focuses on insurance coverage disputes may be accustomed to such posturing. An attorney may have an eye for identifying valid insurance claims and be able to advise clients accordingly. Although an insurance company may initially deny a claim in the hopes of intimidating a policyholder into a smaller settlement, an attorney can work to hold companies accountable when they have unreasonably denied or delayed payment on a valid claim. In fact, an attorney might even up the ante by aggressively bringing an insurance bad faith claim against companies that behaved badly. 

Source: Fortune, “The report every home and car buyer should read,” Jean Chatzky, Jan. 8, 2015

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