In Nevada, insurance coverage is meant to protect the policyholder when they suffer a loss. This provides a sense of security that they will not need to worry about their property being replaced or that they will be compensated for that which was destroyed in an accident or incident. However, while people are frequently concerned about the prospects of a claim denial, a decision on the claim being hopelessly delayed can also be a challenge.
There are viable reasons why an insurance company might take more time than the policyholder thinks are reasonable. Since these delays can prevent a person from making the necessary repairs or replacing what was lost, it is important to have guidance with learning the available options.
Claims should be approved or denied within a specific time frame
According to state law, the insurer is required to either approve or deny a claim within 30 days after it was received. When there is an approval, it should be paid within 30 days. Claims not paid within those 30 days will be subject to interest from the date the payment is due until it has been paid.
In some instances, the insurer needs more time to make its determination. That could be because the claim is particularly complex with many aspects that need to be assessed. There may have been many claims simultaneously delaying the decision. There could be mistakes with documentation and information needs to be provided before the claim can be decided upon. Or the insurer could be investigating the possibility of fraud.
The insurance company is required to inform the policyholder if it needs more information or time to make its decision within 20 days of receiving the claim. If it takes longer, the policyholder should be informed at least once every 30 days after that. The insurance company must tell the policyholder why there is a delay.
Policyholders should be protected if they are concerned about their claim
When there is a delay for any reason on the payment of an insurance claim, the policyholder needs to understand their rights. When the insurance company says there will be a delay, they must give a reason. If it is due to concerns about fraud, because there was an issue with the evidence, or any other reason, the policyholder should make sure they are protected and treated fairly. Discussing the case with those experienced in insurance law can help.
