Claims Payments Top Complaints About Insurers

QWhat are the most common types of complaints that state regulators receive about insurance companies?

AThe National Association of Insurance Commissioners gathers complaint information from state insurance regulators. As of late July, the top complaint had to do with claims payments -- claims-handling delays (19.1 percent), followed by denial of claims (17.9 percent) and unsatisfactory settlement offers (15.0 percent). You should be concerned if a company you're considering has a lot of complaints in these areas.

The next category of complaints revolves around underwriting -- the insurer's process of accepting or rejecting applicants and setting rates. Premium and rating accounted for 4.8 percent of the complaints, and policy cancellation for 4.2 percent. The breakdown was similar to the 2008 figures.

The type of insurance that policyholders had the most complaints about was accident and health insurance (37.7 percent), followed closely by auto insurance (33.7 percent). There were fewer complaints about homeowners insurance (12.71 percent) and life insurance and annuities (10.4 percent).

When you're shopping for an insurance company, check the insurer's complaint record -- especially if it's a small insurer that's offering a good rate but you haven't heard much about its reputation.

It's important to report any problems you have with an insurer to your state insurance department. Then it can be included in the figures to help warn other people about potential problems with the insurer. Plus, the regulator may be able to put extra pressure on the insurer to resolve your complaint.