What Is the Law on Insurance Claims?


Quick Answer

Laws and timelines regarding insurance claims vary between states in terms of acknowledging receipt of a claim, affirming or denying coverage, completing claim investigations and paying portions of claims that are not in dispute, among other requirements, notes PropertyCasualty360.com. It is important to review a state's insurance laws or consult a personal injury attorney to learn the most up-to-date information about law changes.

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Full Answer

In general, state laws regarding insurance claims are similar no matter what type of insurance claim is being processed. In Texas, for example, an insurance company must acknowledge the receipt of a claim within 15 days of the claimant's filing whether it is for auto, homeowners or other insurance, notes TX.us and PropertyCasualty360.com. Most states also require insurance companies to investigate claims or request the need for additional investigation within 30 calendar days of the claim filing. In some states, such as Colorado, insurance companies must also request the need for additional investigation in writing every 30 days that it is necessary after the initial filing.

Some states do not name strict timeframes in their state codes and statutes. South Carolina, Hawaii and Michigan, for example, only state that insurance companies must acknowledge the receipt of claims or provide written explanation for the denial of a claim promptly or within a reasonable amount of unspecified time.

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