A sense of financial pressure often leads to people settling their insurance claims. They may need money to prevent the hospital from sending an account to collections or to repair their damaged vehicle. Without insurance funds, many people will have a hard time covering those expenses.
If you have crash-related expenses that you can’t cover, you may accept a lump-sum settlement offer so that you can start balancing your budget again. Even if the company offers less than the maximum amount of coverage available, you may feel like need to settle to get your finances back on track.
You have rights when you settle a claim
After negotiating with the insurance company, you may have committed to a specific, one-time settlement payment rather than continuing to submit small claims for individual bills. In doing so, you lose your right to future claims for the incident.
Waiting for that money when you already have unpaid bills can be very stressful. Insurance companies sometimes delay the payment on major claims, leading to more expenses, interest and fees for the claimant. Thankfully, state law has strict requirements. The timely payment of a settlement in Louisiana is a mandatory part of good faith Insurance practices.
Once you agree to a settlement in writing, must remit payment for the settlement within 30 days. Delaying it any more than that is a form of bad faith insurance practice. Claimants need to understand the rules that apply to settlements so that they can hold the insurance company accountable if it fails to pay their settlement in a timely manner.
Understanding the rules and laws that govern personal injury claims and insurance companies in Louisiana will help you better protect yourself.