How long does an insurance company have to issue payment after settlement?

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How long does an insurance company have to issue payment after settlement?

It’s been roughly 2 years since my car accident. My case settled 55 days ago and I signed the release 10 days ago. I was under the impression according to state

law they had 30 or 45 days to issue payment.

Asked on July 13, 2018 under Insurance Law, California

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

There is no hard and fast deadline, but they must issue payment within a reasonable time after settlement. The settlement was NOT complete or final until  you signed the release--it doesn't matter if you and they had an agreement in principal before that, only when you signed did it become effecive. So it has only been 10 days so far, and since a reasonable time is typically a month afterward, they not at all late at present.


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