Each policyholder needs to know how long does an insurance company have to pay a claim. The quickest would be within 30 days, but it will still depend on some factors. At times, it can be frustrating to wait for the insurer to send you the check. This is especially true if you are desperate to have the money already since you have medical bills piling up.
To add up to this, you might be short in cash for missing work as you are recovering from injuries. It is a common occurrence that insurance companies are delaying payouts so that they can avoid payments. With that being said, it is important that you know the average time of payouts so that so will be able to estimate the time to expect the settlement check. Read further as we are going to tackle this for the rest of this article.
Average Number Of Days An Insurance Company Have To Pay A Claim
For the most part, insurance companies are paying out claims within thirty days after they receive the claim. In that period, the company assigns an adjuster for the case to review facts. Then, they will decide whether to deny or accept the claim. Perhaps, the claim has been accepted, they will issue payment thereof.
The majority of the insurance companies are sticking with this deadline so that they will remain efficient. But in some states have particular laws that require insurance companies to pay for the claims within a specific time.
How long does an insurance company have to pay a claim? One example is Texas. It is giving insurance companies up to 15 days to let the claimant know that they have received and acknowledge the claim through a letter. They might as well request more information from the client.
Once they received the information, the insurance company has another 15 days to arrive at a final decision whether or not to approve the claim. Most often than not, the cases are resolved within 30 days after a claim is filed.
In case the insurer denied the claim, it must provide you with a valid reason. But if the explanation doesn’t make sense or worse if there is no explanation, then it implies that they are taking advantage of the policyholder. Correspondingly, if you accepted, the payment should be released within 5 days.
3 Factors That Can Delay The Claim
Some factors may cause the delay of the process. Below are the most common ones.
#1. Severe injuries
In case of a car accident, if the injury of the driver is severe, then expect that the settlement will take longer. That is because the treatment for the driver must be finished before the insurer can determine the amount that they need to pay.
#2. Drivers negligence
Once an accident takes place, it is often hard to determine the one responsible for it. In case it is expected that the accident has resulted due to the driver’s negligence, then it will take longer to get a settlement for the claim.
#3. Back-and-forth negotiations
Generally, negotiations for settlement would take too much time. Usually, there is a lot of back-and-forth between the insurance company, victims, and lawyers. Again, The insurance company should be able to pay the claim within 30 days, but with the factors mentioned above, it would still vary.
Insurance Bad Faith And What To Do About It
If you do not receive the payment within the 30-day deadline or within the amount of time prescribed by law, then your case can be considered as insurance bad faith. In such a case he should consult a lawyer as they can provide you with the legal options. A lot of insurance companies are engaging in bad faith so that they can save money even if it will be at the expense of their claimants.
In case the payment is delayed, the insurance company must provide a valid reason. Otherwise, it is ground in filing a bad faith insurance claim.
Once you notice or suspect that there is an insurance bad faith occurring, you should start to document the experience. Ensure to keep all the copies of the emails or letters that you have received from the insurer.
Also, learn the laws about insurance bad faith and ask help from an attorney to determine whether or not you can claim against the insurance to get the prompt payment or any additional compensation. If you succeed with your insurance bad faith claim, it is most likely that you can force the insurer to pay you more.
It’s A Wrap!
To answer the question: how long does an insurance company have to pay a claim?
It usually takes the insurer to issue payment within the 30-day deadline. But some things could be done to accelerate the process.
For example, you could hire a lawyer who will ensure that all the paperwork will be completed correctly and quickly. The common reasons that may cause payouts, resolutions, and investigations delay are missing information and paperwork mistakes.
Furthermore, you should communicate with your insurance provider frequently as this can make them more accountable for your claim. Also, keeping yourself knowledgeable about the claim as well as the deadline and the timeline will show the ensure that you aren’t an easy target for bad faith.
You can also drag all the communications you have done with the insurance company as this may be helpful and filing a complaint later on. Read about how to reset an air conditioner if you still have time to read more informative articles.