Detailed answer — What to expect for an initial insurance offer after you send a demand (New Jersey)
Short answer: After you send a demand letter in New Jersey, you should typically expect an acknowledgement within days to a couple of weeks and an initial response or offer within about 30–90 days. Complex claims or ones needing outside records, expert reports, or litigation hold-up can take several months. Below are the stages, typical timelines, and what speeds up or slows down the process.
1) Acknowledgement and opening the file (1–14 days)
Most insurers will acknowledge receipt of a demand (sometimes called a demand package or settlement demand) within a few days to two weeks. Acknowledgement often comes from a claim adjuster or from an automated system. This notice confirms the carrier received your materials and has opened an investigation.
2) Initial investigation and records gathering (2–6 weeks)
After acknowledgement, the insurer will gather and review materials you sent and collect their own records: police reports, medical records requests, recorded statements, repair estimates, property inspections, liability documents, and prior claims history. If your demand includes complete documentation (medical records, itemized bills, lost-wage proof, photos, repair estimates, and a clear statement of liability/damages), the carrier can often form an evaluation faster.
3) Decision window and first offer (about 30–90 days)
If the claim and demand package are straightforward, many insurers will make an initial decision or offer within 30–45 days. For claims that require more investigation—serious injuries, disputes over liability, litigation holds, or independent medical examinations—the insurer may take 60–90 days or longer before making a concrete offer.
4) Extensions, expert reports, and complex issues (90+ days)
When the carrier needs expert opinions (medical experts, accident reconstruction, structural engineers) or additional discovery, timelines often extend past 90 days. If you or the insurer schedules an independent medical examination (IME) or awaits deposition transcripts, expect added delays. If litigation is filed, settlement negotiations will follow court schedules and can take much longer.
Why the timing varies
- Completeness of your demand: A demand with full records is faster to evaluate.
- Liability clarity: Clear fault speeds resolution; disputed liability lengthens investigation.
- Medical stability: If injuries are still evolving, insurers often wait until medical treatment stabilizes to value future costs.
- Coverage issues: If the insurer is investigating coverage limits, multiple insurers, or additional insured parties, that adds time.
- Internal insurer procedures: Some carriers require supervisory approval or litigation review for offers above certain thresholds.
Relevant New Jersey guidance and consumer resources
New Jersey’s Department of Banking and Insurance (DOBI) provides consumer information about how insurers handle claims and how to file complaints if you believe an insurer is acting unfairly: New Jersey DOBI – Insurance consumer resources. For questions about deadlines that affect lawsuits, New Jersey statutes set time limits for filing certain claims — for example, the general personal-injury statute of limitations is commonly two years. You can find New Jersey statutory information at the New Jersey Legislature site: New Jersey Legislature.
When an insurer must respond promptly
New Jersey law and regulations prohibit unfair claim settlement practices. That means carriers are required to investigate claims in good faith and respond reasonably promptly to communications. If you have concerns about unreasonable delays, you can contact DOBI or consult an attorney who can advise about potential bad-faith issues.
Practical example (hypothetical)
Hypothetical fact pattern: You send a full demand to the at-fault driver’s liability insurer after a motor vehicle crash. You include medical records through 6 months, itemized bills, a lost-wages statement, photos, and a demand number. Typical flow:
- Day 2–10: Carrier acknowledges receipt.
- Day 10–30: Carrier gathers remaining records, orders authorization for medical records if needed.
- Day 30–60: Adjuster completes evaluation; if liability is clear, the carrier often issues an initial offer or a denial.
- Day 60–90+: If the insurer requests an IME or disputes future medical needs, expect further delay.
What to do while you wait
- Confirm the carrier received all medical records, bills, and documentation.
- Respond quickly to reasonable requests for records or authorizations.
- Keep detailed notes of phone calls (date/time/person, what was said).
- If you receive no reply, send a polite follow-up demand and ask for a timeline for a decision.
When to speak with an attorney
Consider consulting a New Jersey attorney if:
- The insurer refuses to make any reasonable offer after a complete demand.
- Liability or coverage is disputed and you face a risk of low or no recovery.
- Your damages are significant, including long-term medical care or substantial lost income.
- You suspect the insurer is acting in bad faith (unreasonable delay, repeated denials without explanation).
An attorney can advise on whether the insurer’s response (or lack of one) is reasonable under New Jersey law, negotiate with the insurer, or file a lawsuit before the statute of limitations runs.
Short checklist to help speed an initial offer
- Include a clear, dated demand letter with a specific dollar settlement amount and basis for damages.
- Attach complete medical records and itemized medical bills, or note where they can be retrieved.
- Include wage-loss documentation and paid invoices/estimates for property damage.
- Provide signed authorizations for medical records and any other records the insurer requests.
- Be available for follow-up questions and return insurer calls promptly.
Closing and next steps
Expect at minimum an acknowledgement soon after sending a demand. If you haven’t heard anything in 30 days, follow up in writing. If delays extend beyond 60–90 days without a substantive reason, consider contacting New Jersey DOBI or speaking with an attorney about your options.
Disclaimer: This article is for general informational purposes only and is not legal advice. I am not a lawyer. For guidance about your specific situation and rights under New Jersey law, consult a licensed New Jersey attorney.