Some people carry insurance to protect their assets and avoid liability. Others maintain coverage because the law or other parties require them to do so. For example, homeowners typically have to carry liability coverage because their mortgage companies require such policies.
People typically expect insurance companies to work with them when they need to file claims. After all, these businesses invest quite a bit into marketing themselves as helpful entities. Frequently, however, those in need of financial support from insurance providers may find themselves fighting an uphill battle.
Insurance professionals might try to misrepresent the terms of a policy or trick someone into accepting a low settlement. They might also drag out the claims process in the hope that the policyholder may give up or forget. Thankfully, the law in Oklahoma imposes limitations on claim turnaround times so that insurance companies can’t leave people waiting indefinitely.
How long does an insurance company in Oklahoma have to respond to a claim filed by a policyholder?
There are two important claim deadlines
Insurance providers have to acknowledge a claim and provide the necessary paperwork for policyholders to establish that they have a covered loss. The state regulates how long the company can wait to acknowledge the claim. There is also a rule regulating how quickly the insurance company responds to the claim after providing the policyholder with paperwork.
When a policyholder initially reaches out to their insurance provider, the company has 30 days to acknowledge that communication. Typically, the company responds by providing specific proof of loss documents for the policyholder to complete.
After they complete those documents, the insurance company then has 45 days to review everything and make a final decision on the claim. Provided that the policyholder fills out and returns the paperwork promptly, they should typically receive a response roughly two and a half months after beginning the claims process, if not sooner.
Unfortunately, some insurance professionals count on policyholders not understanding the law. They may drag out the claims process or ignore initial claims in the hopes of deterring people from pursuing the coverage that they deserve.
Those dealing with inappropriate insurance company conduct may need assistance and holding a insurance company accountable. Recognizing inappropriate processing delays as a common bad faith insurance practice could inspire people to hold insurance companies accountable for deviating from Oklahoma state law.