The first thing you might receive from an insurance company is called a “reservation of rights” letter. This letter informs you that the company is investigating your claim, but that it is reserving its right not to pay you anything if it turns out that the accident is not covered under the policy. The insurance company must still thoroughly investigate your claim and negotiate with you fairly. The letter simply protects the insurance company by preventing you from claiming that the company’s insurance policy covers your accident just because it began settlement negotiations with you.
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