Understanding the Insurance Fair Conduct Act
What is the Insurance Fair Conduct Act (IFCA)?
The law, which took effect on Dec. 6, 2007, covers policyholders whose insurance company:
- Unreasonably denied their claim for coverage or payment of benefits (leg.wa.gov)
- Violated particular regulations governing claims-settlement practices (leg.wa.gov)
For example, insurance companies must acknowledge policyholders’ letters and phone calls about claims, and promptly investigate claims.
Who does the law apply to?
It applies only to claims policyholders make with their own insurance company. It doesn't apply to claims you have with someone else's insurance company.
Does the Insurance Fair Conduct Act apply to my health insurance company?
No. The Insurance Fair Conduct Act does not apply to health insurance companies. The Patient Bill of Rights protects health insurance policyholders.
IFCA does apply, however, to claims for other types of insurance policies that include medical costs, such as auto and homeowner policies.