What must Indiana insurers do if they deny coverage to a policyholder?

When an Indiana insurer denies coverage to a policyholder, they are required to provide written notice along with the specific reasons for the denial. This requirement is in place to ensure transparency and to allow policyholders to understand the basis for the insurer's decision. Written communication not only serves as a formal record for both the insurer and the policyholder, but it also provides clarity and allows the policyholder an opportunity to address any issues or misunderstandings regarding their coverage.

The requirement for written notice is important for consumer protection, as it helps ensure that policyholders are informed about their rights and can make informed decisions regarding their policies, including whether to appeal the denial or seek alternative coverage. This approach fosters accountability and encourages insurers to carefully consider their reasons for denying coverage, ultimately benefiting the policyholder by keeping them informed of their insurance status.