Insurance companies in Illinois have at least 45 days to settle a claim and make a payment after the claim is filed. Illinois insurance companies must also acknowledge a claim within 15 days.
Illinois does not specify a separate timeframe in which the insurance company must actually approve or deny the claim during this process, however. The law only mandates that it be done in "reasonable time".
Insurance Claim Timeline in Illinois
- 15 days to acknowledge the claim and send the policyholder instructions and paperwork, including proof-of-loss forms which serve as a sworn statement from the policyholder about the scope of the damage or injuries.
- 30 days to make the final payment if the claim is approved.
Still, you are entitled to an efficient settlement. If you think that your insurance company is violating the law or operating unethically, you can file a “bad faith” lawsuit, which may award you the original settlement amount with added interest and penalties.
With that being said, it’s important to remember that several factors can affect exactly how long it takes for an insurance company to settle a claim. For example, severe accidents, claims involving bodily injury, and poor communication between involved parties can all slow down the process.
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