Bill > S2771

This bill mandates that insurance companies must either settle an insurance claim or request additional information needed to process it within 30 days of receiving notice of the claim from an insured party, who is the person covered by the insurance policy. If an insurer needs more information, they must clearly state what is required in writing, and once that information is provided, they must then issue a decision on coverage or a settlement offer within the original 30-day timeframe. Should an insurance company fail to meet these deadlines, they will be penalized $250 for each day they are late, with this money being paid directly to the insured party. The bill also allows insured parties to file complaints with the department of business regulation (DBR), which will investigate and order payment to the insured if a violation is found, and it clarifies that this new rule does not prevent insured parties from pursuing legal action for breach of contract or bad faith.

Business and Industry

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