Legal Question in Personal Injury in California

Response Time on Insurance Claims

If the claim is made against your carrier, the carrier generally has a "reasonable" time under the circumstances to respond to a demand for payment. If the carrier is "adverse" to you (i.e. someone else's insurance carrier against whom you are making a claim, such as an auto accident), the carrier can refuse to respond and do so with relative impunity. This is an unfortunate state of the law in California. Your insurance company must deal with you in "good faith," but under the current caselaw, you do not have a right to sue an adverse carrier for "bad faith." This is why so many insurance companies are "lowballing" claims and getting away with it.THIS INFORMATION IS BASED ON GENERAL PRINCIPLES OF LAW AND IS PROVIDED AS A COURTESY ONLY. THIS IS NOT INTENDED TO, AND DOES NOT CREATE AN ATTORNEY-CLIENT OR OTHER ONGOING RELATIONSHIP. YOU SHOULD SEEK THE ADVICE OF AN EXPERIENCED ATTORNEY AS SOON AS YOU HAVE ANY LEGAL QUESTION. DELAY, FAILURE TO ACT, OR IMPROPER ACTS CAN RESULT IN A COMPLETE LOSS OF LEGAL RIGHTS.

Response to Demand for Payment

Your own insurance carrier must responed to any communication from your (or your designated representative) within fifteen (15) days of a communication that reasonably suggests a response is required. (Cal Code of Regulations, 2695.7) After a loss becomes payable (meaning you have agreed on the amount) your own carrier must pay within thirty (30) days (Section 2695.7, Ins Code 2057) although, as a practical matter, the time frame is usually shorter (depending on where your carrier is located.) These time frames do not, however, apply to claims which you make against another person's liability carrier. Visit the California Senate Home Page at www.sen.ca.gov and ask to view AB2322, Knox, which also addresses your concerns.