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If they feel your claim is not legitimate then yes they can. This is the same in any country or state. If you feel they are wrong to do so then it is up to you to approach the relevant arbitrator (the FOS in the United Kingdom but this will be different I suppose in the US). Your other option is to sue, as if your claim is legitimate then they are in breach of contract.

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Q: Can an auto insurance company refuse to take your claim in ca?
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