Detailed Answer
How insurers typically handle a demand and what a reasonable timeline looks like
After you send a written demand to an insurer in Connecticut, you can generally expect the process to follow these stages:
- Acknowledgment (commonly 3–14 days): Many insurers acknowledge receipt of a demand or a claim-related communication within a few days to two weeks. A prompt acknowledgment lets you know the file is open and who is handling it.
- Information gathering / proof of loss (7–30 days): The insurer may ask for supporting documentation: medical records, bills, police reports, photos, wage-loss proof, or an authorization to obtain records. How quickly you supply those documents affects the timeline.
- Investigation and evaluation (30–90 days): The insurer will investigate liability and damages. For straightforward property damage claims or clearly covered medical bills, this often takes 30–60 days. For bodily-injury claims where medical treatment is ongoing or liability is contested, the evaluation commonly takes longer—often 60–180 days or more—because the insurer waits for a stable medical status and full records to evaluate long-term damages.
- Initial offer or response (typically 30–90 days for routine matters): For routine, well-documented demands, an initial monetary offer often arrives within 30–60 days of a complete demand package. Complex disputes, serious injury claims, or cases requiring independent medical review can take longer; an initial position (offer, reservation of rights, or denial) may arrive in 60–180 days.
- Negotiation and resolution (weeks to months): After an initial offer, expect back-and-forth settlement negotiation. How long depends on how far apart the parties are and whether additional investigation or medical records are needed.
These are typical time ranges, not guarantees. The claim’s facts, policy language, medical treatment timelines, and whether liability is disputed all strongly affect timing.
Connecticut law to know
Connecticut law requires insurers to handle claims in good faith and not engage in unfair settlement practices. Conn. Gen. Stat. §38a-816 lists practices that may be unfair, including failure to acknowledge or act promptly on communications and failing to effectuate prompt, fair settlements when liability is reasonably clear. You can read the statute here: Conn. Gen. Stat. §38a-816 (Unfair settlement practices).
If you think an insurer unreasonably delays or mishandles a demand, you may file a complaint with the Connecticut Insurance Department. General consumer guidance and complaint procedures are available through the department: Connecticut Insurance Department.
Common scenarios (hypotheticals) and expected timelines
Hypothetical A — Minor property damage claim
Facts: A clear policy, photos of damage, contractor estimate attached to demand.
Likely timeline: Acknowledgment within a week; inspection within 7–14 days; initial offer or payment within 14–45 days.
Hypothetical B — Soft-tissue bodily injury after a car crash
Facts: Ongoing medical treatment for several months; some dispute about comparative fault.
Likely timeline: Acknowledgment within 1–2 weeks; insurer gathers records over 30–90 days; the insurer may wait until treatment stabilizes (often 3–9 months) before making a meaningful settlement offer. An initial low offer or reservation of rights may appear earlier.
Hypothetical C — Severe injury with future care needs
Facts: Multiple surgeries and projections of future care/costs.
Likely timeline: Extended investigation and valuation (6–18 months or more). Parties often negotiate over experts, life-care plans, and long-term damages before a serious settlement offer appears.
What to do if the insurer doesn’t respond or delays unreasonably
- Send a polite, written follow-up (7–21 days after no response to demand).
- Provide any missing records promptly. Delays in your documentation frequently explain insurer delay.
- Document all calls/emails, including dates, names, and what was discussed.
- If the insurer fails to respond or you suspect unfair practices, consider filing a complaint with the Connecticut Insurance Department: File a complaint with CID.
- If the demand deadline or statute of limitations is approaching, consult an attorney promptly to protect your rights and consider whether filing suit is appropriate.
Helpful Hints
- Include complete documentation with your initial demand (medical records, itemized bills, estimates, photos, police reports, authorizations). Complete packets speed evaluation.
- Ask for a written acknowledgment and a timeline in your cover letter to the insurer. Put a reasonable expectation (for example, “Please respond within 30 days”).
- Track the insurer’s responses. Short delays are normal; long unexplained delays may violate Conn. Gen. Stat. §38a-816.
- Expect insurers to request releases or authorizations. Review releases carefully; do not sign overly broad releases without understanding consequences.
- Be realistic about valuation: insurers often make conservative initial offers. Consider whether further negotiation, appraisal (for property claims), or litigation is realistic and cost-effective.
- If you want a faster resolution and the insurer stalls, discuss litigation risk, timing, and costs with an attorney early so you do not lose rights or deadlines.