What Is A "Reservation Of Rights" In Insurance Claims?

Typically, "reservation of rights" in the context of insurance claims occurs when an insurance company notifies its insured, in writing, that it does not intend to waive any rights or defenses afforded to the insurance company under the subject policy of insurance by investigating the claim or taking other actions under the policy or by not affirmatively asserting a right or coverage defense in the present. 

The terms and conditions of your policy, the facts surrounding the reservation of rights, and your respective state law will determine the legality of certain reserved rights.

Disputing A Florida Long-Term Disability Insurance Claim Denial For Individual Policies?

You may have a legitimate injury or illness that prohibits you from working.  However, when you file your claim for long-term disability insurance benefits, your claim may be denied.  Long-term disability insurance providers often deny disability claims using bad faith tactics.  It is possible to dispute a long-term disability insurance claim denial and most insurers have an established appeals process for doing so.

It is important to note that the appeals process for long-term disability insurance varies depending on whether or not the policy is governed by the Employee Retirement Income Security Act of 1974.  Many individual long-term disability insurance policies (policies purchased individually and not as part of a group plan) do not fall under this law.  If that is the case, you may be able to move forward with your dispute, without having to exhaust all of your administrative remedies.

Individual long-term disability insurance policies are regulated by the statutory and common law of the state in which the insurance policy was issued.  Most policies have a set appeals process for disputing long-term disability claim denials.  You may need to abide by the established process, including the appeals process.

The insurer may not be cooperative in working with you and providing you with the exact reason for denial, in writing.  The process of disputing a long-term disability insurance denial can be complicated and you may want to contact an experienced Florida long-term disability insurance claims attorney who can step in on your behalf.  Lawyers who practice in this area of law can help you with complying with all of the conditions in the policy, the appeals process, and filing a lawsuit, if necessary.