Waiting for an insurance settlement to come through can feel like an eternity, especially when the process stalls without explanation. This article examines why these delays can happen and what your options are to move things along.
Is it bad faith?
When an insurer unreasonably delays or refuses to process a valid case, this behavior may cross into what is known as bad faith. Here are signs to watch out for:
- Failing to respond to your calls, emails or written requests within a reasonable time
- Requesting the same documents multiple times without explanation
- Refusing to provide a clear reason for the delay
- Ignoring evidence you have submitted
Not every delay constitutes bad faith, but when an insurer acts unreasonably or unfairly toward a policyholder, Illinois law provides remedies
It is important to also know that if you are a third-party claimant suing an at-fault driver’s insurer, you generally cannot sue for bad faith directly. Although other legal strategies may be available to force a resolution.
What does Illinois do to protect your claim?
Illinois has specific regulations that govern how insurers must handle your case. Under the Illinois Administrative Code, insurance companies must acknowledge receipt of your claim within 15 working days. They must also conduct their investigation promptly.
If a carrier cannot reach a determination within 40 to 60 days (depending on the type of insurance policy), they must provide you with a written explanation for the delay. This explanation should outline the reasons why the issue is still pending and provide an expected timeline for resolution.
Additionally, Illinois law requires carriers to pay undisputed portions of claims within 30 days. When liability is reasonably clear, the company must attempt to settle your case fairly and promptly.
How can you escalate your claim?
When informal efforts fail to move your case forward, filing a complaint with the Illinois Department of Insurance is often a helpful first step. The department can investigate your concerns and may help facilitate a resolution between you and your carrier. While they cannot act as your attorney, their involvement signals to the carrier that their conduct is under scrutiny.
If you are the policyholder and the insurer’s behavior has been vexatious and unreasonable, Illinois law allows you to pursue a legal claim for bad faith. If successful, it could result in recovery of attorney fees, additional costs and a penalty of up to 60% of the amount owed or $60,000.
Working with an attorney can help you evaluate whether your situation warrants legal action. Furthermore, a lawyer can manage the complex procedural deadlines of a lawsuit, ensuring you preserve your right to compensation