Monday, 02 November 2020 17:21

Rutgers Law Professor Addresses AASP/NJ Members on Insurance Claim Settlement Issues


The Alliance of Automotive Service Providers of New Jersey (AASP/NJ) hosted its annual virtual membership meeting via Zoom on Oct. 29.

The evening presentation featured guest speaker Jay Feinman, Rutgers Law professor and author of "Delay, Deny, Defend: Why Insurance Companies Don’t Pay Claims and What You Can Do About It."


Feinman’s discussion addressed the ongoing claim settlement issues auto body shops experience with various insurance companies.


“Things seem to be getting worse, and the reason I think is because of what is known as ‘delay, deny, defend,’ the title of my book. Insurance companies increasingly delay payment of claims, deny valid claims in whole or part, force policyholders to litigation to get what they are entitled to and then aggressively defend that litigation.”


To illustrate how the trend began, he provided background into how insurance companies were advised by management consultants back in the 1990s to increase profit by reducing payments on smaller claims.


“This is why you have the problems you have with $2,000, $5,000 and $10,000 claims. It is much more effective for them to save money there because there are just so many [of them].”


Although the New Jersey Department of Banking and Insurance (NJDOBI) is in place to promulgate state regulations governing auto physical damage claims and unfair claim settlement practices, the complaint process thus far has been largely ineffective.

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