Entitlements

• Sometimes, multiple parties are legally entitled to the insurance benefits. Perhaps the best example is with mortgages. Insurance companies frequently issue homeowners insurance claim checks to both the mortgage lender and the homeowner, because both the lender and the homeowner have a financial interest in the property. Typically, when an insurance company issues a check to multiple parties, all parties to whom the check is issued must sign the check. The problem arises when all affected parties are not available. If, for example, one party is a business that is no longer in operation, you must get the insurance company to issue a new check.
  
  

Claims Investigation Complexity

• Most insurance companies investigate the majority of claims made to ensure they are accurate and legitimate. Some investigations are more complex than others. For example, with a life insurance policy, a death certificate and official coroner's report generally are enough to convince an insurance company a claim is valid. In an auto insurance claim, however, the insurance agents may have to examine additional data, such as police reports, repair provider quotes and witness statements. The more complex the investigation, the longer the investigation may take.
  
  

Missing or Incorrect Data

• Insurance companies are very specific when it comes to the data they want, but people sometimes accidentally skip lines on forms or misinterpret form directions. When this happens, the insurance company doesn't have all the information it needs to process the claim. They must obtain the all required data, and in some cases you may have to file all over again.
  
  

Response of Others

• Insurance claims indirectly involve many different people. For example, if a person dies as a result of an accident, the insurance company might want copies of the accident report as well as the death certificate. This involves two separate agencies: the coroner's office and the police department. If you must request information from many different parties to file your claim properly, your claim may be delayed based on how long it takes everyone to respond.