How Long Does an Insurance Company Have to Settle a Claim in New York?

How Long Does an Insurance Company Have to Settle a Claim in New York?

Determining how long an insurance company can take to settle a claim is difficult because no law requires an insurance company in New York to settle a claim within a specific deadline. Even so, insurers are legally obligated to handle claims reasonably and efficiently.

Insurance companies are encouraged to investigate claims diligently for a speedy settlement. Once they’ve accepted an insurance claim, they must make a settlement within a reasonable time frame.

The time it takes to receive a settlement from an insurance company depends on the case’s circumstances. Consider engaging a trusted personal injury attorney in New York to enhance your chances of speedy resolution.

Deadlines for a Car Accident Claim in New York

Insurance companies must adhere to the following unfair claims settlement practices and cost control measures:

• Insurers have 15 business days from receiving the claim to acknowledge receiving such a notice. An insurer can issue the acknowledgment in writing; however, if they opt for an alternative means of notification, they must make an appropriate notation in the insurer’s claim file.
• An insurer has a similar 15-day notice to commence investigations from the receipt of the claim.
• Suppose there is no dispute about whether the insurer will cover the damage or injury, and the investigations are complete. In that case, the insurer has 15 days from receiving proof of loss to determine whether to rule whether they’ll accept the claim.
• If an insurance company needs more time to decide, they will have a window of 15 days.
• If an insurance company takes over 30 days to resolve a claim, they may have to explain the unreasonable delay.

Common Causes of Delay in Insurance Settlements

Here are a few causes of delay:

A large Settlement

Most insurers investigate large settlements to avoid making costly mistakes. It may also involve a series of offers and counter-proposals since insurance companies protect their investment by minimizing payouts.

You may, therefore, experience a delay as your insurance claim goes through various audit checks.

Lack of Legal Representation

The faster you secure the services of a personal injury attorney, the quicker you’ll obtain a settlement. An attorney can use various tactics to speed up your case, including compiling evidence that makes it harder for an insurer to deny your claim.

Clarity of Negligence

If there are doubts about who’s liable for the accident, the insurer may take longer to settle your claim. An attorney can expedite your claim by tabling compelling evidence such as police reports, witness statements, images and video footage from accident scenes, and medical records.

Willingness of the Insurer

The willingness of an insurer to settle a claim can significantly impact the speed of settlement. If an insurance adjuster immediately accepts the claim, your case will settle quickly.

On receipt of your claim, an insurer has the following options:

• Accept the claim and settle the requested damages
• Table a counteroffer for your settlement request
• Reject the claim

An insurance adjuster acts to protect the company’s profitability, which is why you may need representation from a personal injury attorney who can negotiate for a fair settlement that covers injury-related losses.

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Richard Barnes – President of The Barnes Firm

Richard Barnes: “As President of The Barnes Firm, I have dedicated my career to achieving justice in hundreds of cases for the victims of injuries caused through the fault of others. Additionally, I have been honored to have been elected Best Lawyer and a Super Lawyer”

Years of Experience: 30+ years
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