What must insurance companies provide when they deny a claim?

When an insurance company denies a claim, it is required to provide a written explanation of the denial. This written notice is crucial as it ensures that the policyholder clearly understands the reasons for the denial, what specific policy provisions were cited, and outlines any potential next steps they might take, including how to appeal the decision if applicable. Written communication also serves as a record that can be referenced in future discussions or disputes regarding the claim. This requirement is in line with regulations that aim to promote transparency and accountability in the claims process, ensuring that consumers are kept informed about the status of their claims and the rationale behind any decisions made.