Do insurance companies have certain time limits to conduct an investigation?

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

Do insurance companies have certain time limits to conduct an investigation?

It seems that the insurance companies drag their feet in investigating accidents. Is there a time limitation for adjusters or investigators to take statements or gather evidence or get releases from people who are seeking medical treatment?

Asked on March 22, 2009 under Insurance Law, Alabama

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 14 years ago | Contributor

Insurance companies are subject to the Unfair Claims Practices Law in each state in which they do business. 

Under the unfair claims practices laws, and the rules promulgated by each of the various State Insurance Departments, insurance companies are bound to act promptly. In some states and circumstances there also are specific time limits for certain actions to occur, although very often the deadline nature of the time limit is not absolute, as the rules allow insurance companies to take more time "where necessary or appropriate."  Thus in any given circumstance things may take longer than target, as the rules focus on the average situation, not each and every specific case. 

Good insurance companies do act promptly, and do not drag their feet, particularly when dealing with claims of their own insureds. They own their own insureds a duty of good faith.  However, some insurance companies seem to be guilty of dragging their feet as a matter of practice. 

When it comes to claims of 3rd parties against the person the insurance company insures, things get a bit different. The duties owed by insurance companies to 3rd party claimants is different. The 3rd party os typically an adversary of the insured.

It also is in the interest of insurance companies to gather the facts of accidents promptly, at least so as to protect their own interests, as with the passage of time peoples memories fade. However, one person's "promptly" can be another person's "foot dragging."

 


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption