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Insurance Law

What can you do when an insurer refuses to pay?

A denial is not the end of the process. Start with the policy wording and the insurer's stated reason, because most disputes turn on a specific exclusion, a condition you were required to meet, or a disagreement about the facts. Insurers owe policyholders a duty of good faith in both countries, and there are internal appeal and regulatory complaint routes before litigation.

What to do next

  1. Get the denial reason in writing

    Request the specific policy provision relied on. A vague verbal explanation is not enough to assess or challenge, and insurers are generally expected to explain denials.

  2. Read the policy against that reason

    Check exclusions, definitions, notice requirements, and any duty to mitigate or cooperate. Ambiguity in policy wording is often interpreted in the policyholder's favour, which matters more than people realize.

  3. Escalate in order

    Use the insurer's internal complaint process, then the applicable regulator or ombudservice, and consider legal advice for significant claims. Note limitation periods — they apply to claims against insurers too.

Frequently asked questions

Do insurers have to act in good faith?

Yes. Both US and Canadian law impose good-faith obligations, and bad-faith handling can expose an insurer to liability beyond the claim itself.

Is there a free way to challenge a denial?

Usually. Internal complaint processes and independent ombudservices or regulators exist in both countries and cost nothing to use.

How long do I have to sue?

Limitation periods apply and can be shortened by the policy itself. Check the policy and get advice early rather than assuming you have years.

Should I accept a partial payment?

Be careful — accepting a payment described as full settlement can end your claim. Get advice before signing a release.

This is general information, not legal advice. Laws vary by location and every situation is different — speak with a qualified lawyer about your specific circumstances.

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