How long do I have to wait to be paid for a claim?

Asked by Anonymous from An unspecified location

This is an issue many people just like you struggle with. Because they don’t know the laws regarding insurance in their state, most people feel lost and hopeless when they feel their claim is taking too long and they think they don’t have any recourse.

Actually, the exact opposite is true. Many states have enacted an “Unfair Insurance Practices Act” or an “Unfair Claims Settlement Practices Act” that keep insurers from taking too long to respond to claims. If they break these types of laws, they can be fined, assessed punitive damages or, in the worst case scenario, have their license to do business revoked.

Generally speaking, insurers are required to do these three things when you file a claim: (1) acknowledge your claim within a certain time frame, such as 15-30 days, (2) investigate your claim promptly, and (3) make a good-faith attempt to process a prompt, fair and equitable settlement of claims in which liability is reasonably clear. Additionally, an insurer may not refuse to pay your claim without a valid reason.

If you think your insurance company has violated claims laws in your state, try calling and asking for your claims rep’s supervisor. Explain that you’re waiting for an answer and you don’t feel you’re getting it in a timely manner. If you don’t get anywhere via that route, contact your state department of insurance (you can find their number online) and file a complaint. It will conduct an investigation and help you get the answer you need.