Policyholders facing unreasonable insurance payment delays need practical answers about legal timeframes, available damages, proving deliberate stalling, and next steps when insurers keep promising payment is almost ready.
What constitutes unreasonable delay in insurance claim payment?
South Carolina law requires insurers to acknowledge claims within 15 days, complete investigations within reasonable timeframes based on claim complexity, and issue payment within specified periods after reaching settlement agreements. Claims requiring minimal investigation should be resolved within 30-60 days. Complex claims involving extensive damage, medical treatment, or liability disputes may reasonably take longer. However, delays extending months beyond reasonable investigation needs constitute unreasonable conduct violating prompt payment obligations. Warning signs include insurers repeatedly claiming they need "just a little more time" without substantive progress, requesting documents already provided, transferring claims between adjusters requiring each to start fresh, or citing vague processing issues without specific timeframes. When months pass without meaningful explanation, delays likely cross from reasonable investigation into deliberate stalling tactics designed to pressure policyholders into accepting inadequate settlements or abandoning legitimate claims. Matt McGuire analyzes claim timelines identifying unreasonable delays violating South Carolina insurance regulations and policyholder rights under contract terms.
How long should insurance claims take to process?
Timeline varies by claim type and complexity. Simple auto property damage claims with clear liability should resolve within 30-45 days—insurers inspect vehicles, obtain repair estimates, and issue payment promptly. Injury claims requiring medical treatment evaluation take longer but should progress steadily as treatment continues. Homeowner's property damage claims need inspection time but shouldn't drag on indefinitely once damage extent is determined. Disability claims require medical documentation but insurers must process applications within specified timeframes under policy terms. South Carolina regulations impose specific deadlines for various claim processing steps. Insurers must acknowledge receipt within 15 days. They must provide reasonable explanations when additional investigation time is needed. Once all necessary information is received, payment authorization should follow within 30 days absent legitimate coverage disputes. The key is steady progress—legitimate claims move forward even if slowly, while delayed claims stagnate with excuses but no substantive advancement. If your claim has been pending for months without meaningful progress despite your cooperation providing requested information, unreasonable delay likely exists.
Can I sue my insurance company for delayed payment?
Yes, unreasonable claim payment delays create grounds for breach of contract and bad faith lawsuits in South Carolina. Breach of contract claims seek policy benefits plus interest from the date payment should have been issued. Bad faith claims—available when insurers lack reasonable basis for delay and knew or recklessly disregarded that unreasonableness—allow recovery of consequential damages caused by stalling. This includes additional medical expenses incurred while awaiting treatment authorization, property damage worsening during delayed repairs, interest charges and late fees from bills unpaid during delays, lost income when disability payments stalled, emotional distress from financial hardship, and attorney fees required to force payment insurers should have provided voluntarily. Punitive damages may be available when delay conduct demonstrates willful disregard for policyholder rights—systematic stalling policies, continuing delays despite having all necessary information, or maintaining stalling tactics after attorneys demand prompt payment. Litigation involves discovery obtaining claim files revealing internal delay decisions, deposing adjusters about processing timelines, and proving damages caused by unreasonable conduct. Many cases settle during discovery as insurers prefer paying claims over jury trials exposing systematic delay tactics.
What damages can I recover beyond the delayed policy benefits?
Beyond original policy benefits unreasonably delayed, South Carolina law allows recovery of consequential damages caused by improper stalling—additional medical expenses when treatment delays worsened conditions requiring more extensive intervention, property damage spreading when repairs were postponed during insurance delays, interest charges and late fees on bills unpaid awaiting claim payment, lost income when disability benefit delays prevented financial stability, credit score damage from accounts going delinquent during payment delays, and emotional distress from financial hardship created by unreasonable stalling. Interest accrues on delayed policy benefits from the date payment should have been issued. Attorney fees required to force payment insurers should have provided voluntarily are recoverable in many cases. When delay conduct demonstrates willful disregard for policyholder rights—systematic delay policies, continuing stalling despite having all information needed, or maintaining delays after legal demands—punitive damages may be available punishing misconduct and deterring future bad faith. Expert testimony can prove additional damages like medical complications caused by treatment delays or property deterioration during repair delays. Total damages often substantially exceed original claim value when insurers force litigation rather than honoring prompt payment obligations under policy terms and state law.
How do I prove my insurer is deliberately stalling?
Proving deliberate delay requires documentation showing systematic stalling patterns rather than legitimate investigation needs. First, create comprehensive timeline documenting every communication—when you submitted the claim, what information you provided, what the insurer requested, when you responded, and what reasons they gave for continued delays. Second, preserve all correspondence showing repeated promises that payment is coming soon without substantive progress. Third, note redundant documentation requests for information already provided or unnecessary to claim processing. Fourth, document when adjusters changed and how each reassignment restarted processing. Fifth, obtain your complete claim file through written request under South Carolina law—files often reveal internal communications showing insurers had all information needed months before finally authorizing payment. During litigation, discovery produces emails between adjusters and supervisors discussing delay strategies, claim processing guidelines prioritizing cost reduction over prompt payment, and performance metrics rewarding claims personnel for minimizing payouts. Depositions of adjusters expose whether legitimate investigation justified delays or stalling tactics were deployed. Expert testimony from former insurance professionals can establish industry standards for reasonable processing timeframes, proving your claim exceeded those standards without justification. Pattern evidence showing the insurer habitually delays similar claims demonstrates systematic practices rather than isolated processing issues.
Can I recover interest on delayed insurance payments?
Yes, South Carolina law allows interest on delayed claim payments. When insurers unreasonably delay payment of benefits owed under policy terms, interest accrues from the date payment should have been issued through the date finally paid. Interest rate is typically the legal rate set by statute, currently 8.75% annually. This compensates policyholders for losing use of money rightfully owed during unreasonable delay periods. For example, if your auto collision claim should have been paid within 60 days but the insurer stalled for 10 months, you can recover 8 months of interest on the claim amount. On a $25,000 claim, that's approximately $1,500 in interest beyond policy benefits. Interest continues accruing until full payment is received, creating increasing pressure on insurers to settle rather than continuing stalling tactics. When cases proceed to litigation, prejudgment interest from the date payment should have been made through trial plus post-judgment interest from verdict through actual payment can add substantial amounts to original claim values. Some policies contain provisions specifying interest rates for delayed payments, which may exceed statutory rates. Bad faith cases may also award interest on consequential damages caused by delays. Insurers often resist interest demands, arguing various excuses justified delays. Attorney representation is typically necessary to recover interest insurers won't pay voluntarily despite clear legal obligations.
Should I file a Department of Insurance complaint about claim delays?
Yes, filing Department of Insurance complaints creates regulatory pressure often forcing prompt claim resolution. South Carolina Department of Insurance investigates complaints about improper claim handling including unreasonable payment delays. When complaints are filed, insurers must respond to regulators explaining delay reasons and providing claim files for review. This regulatory scrutiny creates pressure insurers feel intensely—no company wants pattern evidence of systematic delay tactics attracting state enforcement action. Department investigations often result in insurers promptly authorizing payments they delayed for months, as companies prefer settling claims over regulatory sanctions. Complaints also create evidence useful if litigation becomes necessary, demonstrating you pursued all available remedies while insurers maintained unreasonable positions. Filing is simple—complete online forms describing delay issues, submit supporting documentation, and the Department contacts the insurer demanding response. However, Department authority is limited to regulatory sanctions, not ordering specific claim payments or damage awards. For those remedies, litigation may be necessary. Additionally, Department investigations take time, potentially several months. If you need immediate relief, attorney representation demanding prompt payment under threat of litigation may be more effective. We often pursue both strategies simultaneously—filing regulatory complaints creating official pressure while sending legal demands threatening immediate lawsuit if payment isn't authorized promptly.
What are warning signs my insurance company is using delay tactics?
Warning signs of deliberate delay tactics include: repeatedly promising payment is coming soon without providing specific timeframes; requesting documents you already submitted or that aren't necessary to claim processing; transferring your claim between adjusters multiple times requiring each to "review the file"; citing vague processing issues, system problems, or supervisor approval needs without resolution timelines; failing to return phone calls or respond to emails for extended periods; claiming investigation is ongoing months after you provided all requested information; denying receiving documents you can prove were sent; scheduling then canceling inspections or examinations multiple times; processing similar claims for other policyholders while stalling yours; suddenly raising new issues or questions after months of processing; offering settlements far below claim value hoping desperation forces acceptance; and maintaining delays despite your attorney's demands for prompt payment. Another key indicator is lack of substantive progress—legitimate claims move forward even if slowly, with adjusters requesting specific information, scheduling evaluations, and providing updates. Delayed claims stagnate with excuses but no advancement. If months pass without meaningful progress despite your full cooperation, deliberate stalling likely exists. Contact McGuire Law immediately when you recognize these patterns—we'll document delay tactics and force prompt resolution through legal demands, regulatory complaints, or litigation.
What should I do when my insurance company keeps stalling my claim?
First, stop accepting vague promises that payment is "almost ready" or "coming soon." Demand written explanation specifying exactly what information or investigation remains needed and providing specific timeline for resolution. Second, create comprehensive documentation of all delays—every communication, excuse provided, redundant request made, and deadline missed. Third, obtain your complete claim file through written request—South Carolina law grants policyholders access to files revealing whether legitimate investigation justified delays. Fourth, document how delays are harming you—medical conditions worsening awaiting treatment authorization, property damage spreading during repair delays, bills going unpaid creating late fees and credit damage, or income loss from delayed disability benefits. Fifth, file Department of Insurance complaint triggering regulatory scrutiny of improper handling. Sixth, consult experienced insurance delay attorney before insurers pressure you into accepting inadequate partial payments through continued stalling. Seventh, preserve all evidence showing you provided everything requested while insurers deployed bureaucratic delay tactics. Finally, contact Matthew McGuire at (888) 499-5738 immediately—we'll send legal demands threatening litigation if prompt payment isn't authorized, file regulatory complaints pressuring resolution, and pursue lawsuits when necessary forcing insurers to pay benefits owed plus damages caused by unreasonable delays. Don't let another month pass while your insurer keeps stalling.
