What Is a Claim Denial Letter?

What Is a Claim Denial Letter?

A claim denial letter is a letter by which an insurer declines to cover a claim by made by an insured individual. It generally contains options that the insured can take if he does not agree with the denial, according to Canadian Underwriter.

Insurance claims are denied for many reasons. The most obvious ground for denial is if the insurance policy to which the insured subscribed does not cover the type of loss claimed. Claims can also be denied if the insurer suspects that the insured is acting fraudulently. This could mean that the insured misstated facts or claimed compensation for damages that did not occur, according to Canadian Underwriter.