Detailed Answer
Short answer: There is no one fixed number of days under Vermont law that guarantees when an insurer must make an initial offer after it receives a demand. In practice, most straightforward claims generate an initial response or offer within 2–8 weeks. Complex claims, claims that require additional records or an independent medical exam (IME), or disputes about liability commonly take longer—often 2–4 months or more.
Vermont law and the Vermont Department of Financial Regulation expect insurers to handle claims promptly and in good faith. If an insurer unreasonably delays evaluation or payment, you can raise concerns with the Department. For general consumer guidance, see the Vermont Department of Financial Regulation insurance pages: https://dfr.vermont.gov/consumer-protection/insurance. For filing a complaint, use: https://dfr.vermont.gov/consumer-protection/complaint. You can also search Vermont statutes at: https://legislature.vermont.gov/statutes/.
Typical timeline and what happens at each stage
- 0–7 days: Acknowledgment and triage. After the insurer gets a demand, it usually acknowledges receipt and opens a file. The insurer may ask for missing documents (medical records, bills, wage records, police reports).
- 1–3 weeks: Records collection and initial review. Claims handlers gather medical records, bills, repair estimates, and any liability evidence (police reports, witness statements, photos). If your demand package is complete, this phase is faster.
- 2–6 weeks: Decision or preliminary offer. For clear liability and well-documented damages, insurers often make an initial offer in this window. The offer may be a full settlement, a partial offer, or a low opening offer meant to start negotiations.
- 4–12+ weeks: Investigation extensions, IMEs, and negotiations. If liability is disputed or the insurer needs an IME, claim resolution can take longer. Negotiation can add extra weeks or months.
- 3+ months: Complex claims, coverage disputes, or readiness for litigation. If a coverage dispute or party refuses reasonable settlement, the matter can move toward litigation, further prolonging a final resolution.
Why timelines vary (common causes of delay)
- Incomplete demand packet (missing medical records, unpaid bills, or proof of lost wages).
- Need for an independent medical exam (IME) or specialized reports.
- Disputed liability or conflicting witness statements.
- High-value claims that require review by claims supervisors or outside counsel.
- Slow providers (medical records or billing offices that take weeks to produce records).
- Reservation of rights or coverage investigation by the insurer.
What speeds up an initial offer
- Send a complete, well-organized demand: clear demand number, date of loss, policy number (if known), concise medical chronology, itemized medical bills, wage loss proof, photos, and a specific dollar demand with supporting math.
- Provide signed medical-authority releases (if asked) so the insurer can obtain records directly.
- Follow up early: a polite phone call or short email asking for a claim number and expected review timeline.
- Use a settlement demand deadline—typically 30 days—to prompt a response. Note: a deadline is a negotiation tool, not a statutory requirement.
What you can do if the insurer stalls
- Confirm the insurer has all needed records and a claim file number.
- Ask for a reasonable deadline for their response, then follow up in writing.
- If the insurer’s conduct appears unreasonable, contact the Vermont Department of Financial Regulation: https://dfr.vermont.gov/consumer-protection/complaint.
- Consider consulting a Vermont attorney experienced in insurance claims or personal injury to evaluate whether negotiation, demand revision, or filing suit is appropriate.
Helpful Hints
- Prepare a clear, complete demand packet the first time. Completeness often cuts weeks off the timeline.
- Keep a log of all communications: dates, names, and summaries of conversations. This helps if you later file a complaint.
- Expect an initial offer to be a starting point. Insurers often make a lower opening offer to begin negotiation.
- Ask whether the insurer will consider interim payments for undisputed medical bills while they investigate liability.
- Use the Vermont DFR resources when you believe the insurer is acting in bad faith or unreasonably delaying: https://dfr.vermont.gov/consumer-protection/insurance.
Final note and disclaimer: This article explains typical practices and practical steps under Vermont procedures and consumer resources. It does not offer legal advice and does not create an attorney-client relationship. For advice specific to your situation, consult a licensed Vermont attorney.