Reservation of Rights

When an insurer pays a claim under a “reservation of rights,” it is essentially providing a provisional payment.  Though the insurance company may be sending you a check, it is not admitting that it actually has any liability under the policy.  Instead, it is “reserving the right” to stop paying your claim if it can find evidence to deny it later.  Once the company denies your claim, they can also demand you to repay them whatever proceeds they have distributed to you.

Click here for more information about strategies that insurance companies use to deny or terminate benefits.