Grievance Procedure


Definition - What does Grievance Procedure mean?

A grievance procedure is a process in which two or more parties attempt to resolve a dispute. In the context of insurance, grievance procedures often occur when a policyholder believes he or she is entitled to coverage for a specific loss, and the insurance company disagrees. Each state has its own laws regarding grievance procedures.

Insuranceopedia explains Grievance Procedure

Grievance procedures are common in many industries and organizations. For example, labor unions often have their own grievance procedures. For insurance companies, a grievance procedure may begin with with an evaluation of the claim, then if the claim is rejected and the policyholder appeals, then the insurance company may evaluate the appeal. Finally, if no resolution can be reached, a lawsuit may occur in which the insurance company defends itself from claims from the policyholder that coverage is owed.

How Well Do You Know Your Life Insurance?

The more you know about life insurance, the better prepared you are to find the best coverage for you.

Whether you're just starting to look into life insurance coverage or you've carried a policy for years, there's always something to learn.

Share this:

Connect with us

Email Newsletter

Join thousands receiving the latest content and insights on the insurance industry.