Know Your Insurance Rights in Idaho

Before you decide to purchase any insurance products in Idaho, it would be good to know your rights and obligations under state law. As in any other contract, a policy is binding once signed and both parties, the insured and the insurer, must adhere to the terms and conditions contained therein.

Insurance companies in Idaho are prohibited from doing unfair and deceptive trade practices. In particular, they are not allowed to use predatory marketing tactics in selling insurance policies to members of the armed forces. To this end, any deceptive or misleading advertisements using any forms of media are also prohibited. You, as the policyholder, have every right to report to the authorities any attempt in the part of the insurer or insurance agent to coerce you in making changes to the policy, particularly with the use of statements making unproved, often misleading, comparisons with other insurance products.

Before you make you selection on which insurance policy to purchase, it makes good sense to shop around first and know the rates offered by each insurance provider you approach. To this end, know that no insurance provider is allowed to discriminate between policyholders of the same class and same life expectation rate, particularly in the rates offered for life insurance, disability insurance, and annuities. The state of Idaho also prohibits the use of genetic testing to determine the rates of disability or health insurance policies. You are also obligated to pay only the premiums and charges agreed upon in the policy. Should the insurance agent or the insurance provider collect any amount for any other forms of charges not specified in the contract, the policyholder would be advised to approach any authorized government agency for guidance and counsel.

Auto insurance policyholder who has processed a claim is entitled to payments from insurer within 20 days of receiving an itemized repair bill duly approved by the same insurer. This payment may be in a form of a check or bank draft, payable to the policyholder or, should the policyholder specify it, to the repairer. Insurance companies or providers are required by state law to acknowledge and address any claims that a policyholder makes. Insurers must make immediate action on the claims and are not allowed to reject a particular claim without thorough investigation. Insurance companies are not also allowed to make any form of delaying tactics, such as requiring unnecessary documents containing the same information to be submitted. Be wary if the insurance provider should offer payment that is decidedly less that they lead you to believe that you are entitled to. This is a blatant example of deceptive trade practice and is rightfully prohibited by law. Also considered to be included in the deceptive trade practices is altering a policy without the policyholder’s knowledge and attempting to settle claims based on those changes.

In terms of claims made on life insurance policies, the insurer must pay the proceeds of benefits within 30 days of getting adequate proof of death. Should there be any delay in the part of the insurer in settling the claim, the benefits as well as interest earned from the date of death to the date when actual payment is made shall be paid in full. It is only when the satisfactory proof of death has been received more than 180 days from the death of the insured that insurers are allowed to pay the interest from the day of receiving proof of death to the date of actual payment should payment not be made within 30 days of getting proof of death. If the beneficiary chooses to forego accepting lump sum payment in favor of other forms of payment, then the insurer is not required to pay interest accrued. What were mentioned above are just important points regarding insurance laws in Idaho. Further clarifications and references can be obtained by visiting the website or contacting the Idaho Department of Insurance.

We help our Idaho customers in Boise City, Nampa, Meridian, Pocatello, Idaho Falls, Coeur d'Alene, Twin Falls, ID and other cities in The Spud State lower their premiums and save money on all types of insurance. Use the form above to find low cost auto, homeowners, health, medical, life and long term care insurance. Using our Idaho insurance agent and broker network, you can compare rates quickly from the comfort of your home.

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