Claim-handling issues made up the top three reasons consumers filed formal complaints against their insurance companies in 2006, according to a survey recently conducted by the National Association of Insurance Commissioners.

The culprits for the complaints centered on claim delays, denials of claims, and unsatisfactory settlements or offers. Two other issues -- policy cancellation and premium cost -- completed the top five list, which NAIC develops every year based on information it receives from states on closed complaints. According to the NAIC, a closed complaint is one that has been investigated and resolved to the satisfaction of the state or jurisdiction in which it was filed.

The study wasn't all bad news, though. The NAIC said that the overall number of complaints dropped for the third consecutive year, with a total of 190,572 consumer complaints being reported to the association's Complaint Database System (CDS). That number marks an eight percent decrease from 2005. It should be noted, however, that the NAIC noted does not collect all complaint data from all states. It relies on information submitted by state departments of insurance.