Wisconsin Insurance Law: How to Address Delayed Insurance Payments

Wisconsin insurance law is designed to protect policyholders and ensure timely payment of claims. However, there are instances when insurance companies may delay payments, leaving policyholders frustrated and unsure of their next steps. Understanding how to address these delays is crucial for anyone navigating the insurance landscape in Wisconsin.

To begin with, it's essential to know your rights as a policyholder under Wisconsin law. The state mandates that insurance companies respond to claims promptly and make payments as quickly as possible. According to Wisconsin Statute 628.46, insurers are required to pay claims within 30 days after the insured submits a completed proof of loss. If you find yourself facing a delayed payment, there are several steps you can take to expedite the process.

First, review your insurance policy. Familiarize yourself with the specific terms and conditions regarding claims submission and payment timelines. This knowledge will empower you when discussing the matter with your insurer. If you believe your claim has been unduly delayed, gather all relevant documentation, including correspondence with your insurance company, proof of loss submissions, and any additional evidence supporting your claim.

Next, contact your insurance company directly. It’s advisable to reach out to your claims adjuster or customer service representative to inquire about the status of your payment. Document all interactions, including dates, times, and the names of those you speak with. If the representative cannot provide a satisfactory answer, request to escalate the matter to a supervisor.

If direct contact does not resolve the issue, consider sending a formal complaint to the insurance company. Outline the details of your claim, the timeline of events, and the delays you’ve experienced. Be sure to keep a copy of your complaint for your records. This step can prompt further investigation by the insurance company and possibly lead to a resolution.

Should the situation persist without improvement, filing a complaint with the Wisconsin Department of Insurance is a viable option. The department oversees insurance practices and can intervene on your behalf. Provide them with the same documentation you have compiled, including copies of your policy, claim submissions, and correspondence with the insurer.

Additionally, consulting with a Wisconsin insurance attorney can be beneficial, especially if significant time has passed and you are still facing payment delays. An attorney can provide legal advice tailored to your situation, help you understand your rights, and potentially represent you in negotiations with your insurer.

In cases where insurers consistently fail to meet payment deadlines, policyholders can explore filing a lawsuit for bad faith against the insurance company. Wisconsin law recognizes the obligation of insurers to act in good faith and deals seriously with breaches of this duty. Legal representation is highly recommended for this course of action to navigate complex legal proceedings.

In conclusion, dealing with delayed insurance payments in Wisconsin can be frustrating. However, by understanding your rights, keeping detailed records, and taking proactive steps, you can increase the likelihood of receiving your entitled payments. Whether through direct communication with your insurer, filing a complaint, or seeking legal assistance, you have tools at your disposal to address delays effectively.