When we think of identity theft, we usually picture unauthorized credit card charges or fraudulent loans. However, this heinous crime can also affect the insurance claims process and lead to unfair denials, hindering your access to coverage in an emergency.
Florida law gives you multiple avenues for recourse if your health, auto, homeowners, or life insurance claim has been denied due to identity theft. The Boca Raton consumer protection attorneys at Lehrman Law can represent you in the appeals process and through civil claims as necessary. You paid for your insurance coverage, and it should be available to you when you need it. Contact us today for a consultation.
How Identity Theft Can Disrupt Insurance Claims in Florida
With our most intimate financial matters increasingly going online, identity theft has become far more sophisticated. The specific MOs thieves use will depend on the type of insurance they target. For example:
- Health Insurance – A thief may use your insurance information to receive treatment, drugs, or devices for themselves. Insurance companies may use these false claims to deny legitimate ones or cancel your policy entirely.
- Auto Insurance – A thief may stage an accident with your personal information, file a false injury claim, or even register a car in your name and report it as stolen.
- Homeowners Insurance – A thief may file a false property damage claim or apply for a mortgage or home warranty in your name.
- Life Insurance – If a thief gets their hands on life insurance information, they may try to change a policy’s beneficiary or even file a false death claim.
Insurance companies can cite “inconsistencies” in a policyholder’s records to deny a claim. These may include mismatched identity records, suspected misrepresentation, conflicting claim histories, or duplicate claims that they can’t verify. They then leave it up to you to demonstrate that the fraudulent activity wasn’t your doing.
Some claim denials constitute bad faith under Florida law. This includes when an insurer fails to conduct a reasonable investigation or ignores clear evidence that you’re a victim of fraud.
What to Do if Your Insurer Denies Your Claim Due to Identity Theft
Identity theft victims in Florida have substantial rights at the state and federal levels. By exercising them, you may be able to restore your insurance coverage and hold the company accountable for a bad-faith denial.
As soon as you discover the identity theft, follow these steps to protect your legal position:
- File Police and FTC Reports – Florida law requires a police report for certain identity theft matters. Contact your local law enforcement office, then file an identity theft report with the Federal Trade Commission (FTC).
- Notify Your Insurer – Send a written notice to your insurance company’s fraud department, and request that they put a flag on your account.
- Lock Down Other Personal Information – Some pieces of identifying information, like your Social Security number, are tied to other aspects of your financial life. Contact Equifax, Experian, and TransUnion to place a security freeze on your credit reports.
- Request a Copy of Your Claim File – Your legal team can ask your insurer for a complete copy of your claim file. As they review the information inside, they can often pinpoint the specific activities or factors that triggered the denial.
- Exercise Your HIPAA Rights – If identity theft affects your medical records, you have the right to request a correction or amendment.
Your legal team can help you appeal the denied claim through your insurance company’s internal channels. This can include an external third-party review if the claim was related to your health coverage. If the insurer acted in bad faith or did not handle your claim according to the law, you may be able to file a civil claim for damages.
How a Florida Consumer Protection Lawyer Can Help
Identity theft insurance denials touch both consumer protection and criminal law. You need a legal team that understands state and federal consumer protection statutes, knows what constitutes bad faith, and can investigate the nature of the fraud to build a solid appeal.
At Lehrman Law, we take a comprehensive approach to fight for you at every stage. This includes:
- Investigating Your Case – We work with forensic experts and consumer reporting agencies to trace the fraud and demonstrate its connection to your denied claim.
- Communicating with Your Insurer – We can handle all communications with your insurer, present evidence of theft, and demand that they process your claim according to the law.
- Filing Formal Complaints – If your insurance appeal is denied despite clear evidence, we can file complaints with the Florida Office of Insurance Regulation. The state can assess penalties if investigators find evidence of bad-faith practices.
- Preparing and Filing Lawsuits – Litigation may be necessary if insurers refuse to reverse an improper denial or persist in using bad-faith tactics. Our attorneys have experience with individual bad-faith claims and class action lawsuits alleging more systemic unscrupulous practices.
Deadlines to Know for Identity Theft Insurance Denial Claims
Identity theft victims face multiple overlapping time limits in the legal process. The deadline to appeal a denied claim depends on the provisions in your insurance policy, but typically ranges from 30 to 180 days. Health insurance appeals tend to have the shortest deadlines, while property insurance may have a longer appeal period.
For legal action against an insurer, the deadline to file a lawsuit depends on the specific issue:
- Bad Faith Claims – Five years from the date of the denial
- Consumer Protection Claims Under the Florida Deceptive and Unfair Trade Practices Act – Four years from the date of the denial
- Civil Fraud or Misrepresentation Suits – Four years from the date the fraud was/should have been discovered
Your lawyer can tell you more about the deadlines that apply to your specific case.
Contact a Florida Identity Theft Insurance Denial Lawyer
If you’re dealing with a denied insurance claim tied to identity theft in Florida, you can trust the Boca Raton attorneys at Lehrman Law to be your guides and advocates. For almost 30 years, we’ve helped fraud victims hold companies accountable for negligence and bad-faith tactics. Our team works in both state and federal courts, and we take an aggressive approach to investigate your claim, defend your rights, and protect your privacy and financial future. Contact our office today for a case review.