Overview
This FAQ explains what to expect timing-wise after you send an insurance demand under Wisconsin law. It summarizes typical timelines, the legal backdrop that governs insurer conduct, and practical steps to keep your claim moving. This is educational information only and not legal advice.
Detailed Answer
There is no single fixed deadline in Wisconsin law that forces an insurer to accept or make an initial settlement offer within a set number of days after receiving a demand letter. Instead, Wisconsin law requires insurers to handle claims reasonably and prohibits unfair claim settlement practices. The main statutory reference is Wisconsin’s prohibition on unfair claim settlement practices: Wis. Stat. § 628.34 (see https://docs.legis.wisconsin.gov/statutes/statutes/628/34).
Because there is no automatic, statute-driven deadline that produces a guaranteed offer, the actual timeline depends on several factors. Below are common stages after a demand is sent and realistic time ranges you can expect in many claims handled in Wisconsin:
- Acknowledgment and file opening (days): Many insurers will acknowledge a demand within 7–14 days. A short acknowledgment is common while the insurer opens a file and assigns an adjuster.
- Initial investigation (2–6 weeks): The insurer will review the demand, request medical records or bills, get an adjuster report, and look at liability evidence (police reports, photos, witness statements). Straightforward liability cases often move faster; complex fault disputes take longer.
- Medical records collection and evaluation (4–12+ weeks): If injuries and medical treatment are at issue, the insurer needs complete medical records and sometimes independent medical examinations. Obtaining records from multiple providers and validating future care can extend this phase.
- Reserve and internal review (2–8+ weeks): The insurer sets a reserve and may seek input from claims managers or defense counsel before making a settlement position. High-value or coverage-complicated demands involve more internal review and may take several additional weeks.
- Initial offer or rejection (30–120+ days): For routine claims the insurer sometimes makes an initial offer within about 30–60 days. For serious injuries, disputed liability, or complex coverage issues, expect 60–120 days or longer. In cases that will require litigation or where policy limits are small relative to demand, an insurer might respond more quickly with a low offer, reserve, or a denial.
- If no timely, reasonable response (complaint or negotiation): If the insurer delays unreasonably, you may follow up, provide additional records, or file a complaint with the Office of the Commissioner of Insurance (OCI) (see https://oci.wi.gov/Pages/Consumers/Complaints.aspx) or consider contacting an attorney to discuss bad-faith options. “Unreasonable” is fact-specific; the statutory unfair-practices provision is the reference point (Wis. Stat. § 628.34).
Practical examples (hypothetical):
- Minor rear-end collision, soft-tissue injury, clear liability, complete medical bills: insurer may respond with an offer within 30–60 days.
- Moderate injury with ongoing treatment, multiple providers, and some dispute about need for future care: expect 2–6 months for a meaningful offer.
- Serious injury with disputed liability, multiple defendants, or coverage/UM/UIM issues: settlement negotiations can take many months to a year or more.
How Wisconsin law affects timing
Wisconsin’s statutory framework makes it unlawful for an insurer to engage in certain unfair claim settlement practices, such as unreasonable delay in investigation or payment. While the statute does not give a single-day deadline for every response, it does provide a basis for complaint if the insurer is stalling without justification. See Wis. Stat. § 628.34: https://docs.legis.wisconsin.gov/statutes/statutes/628/34.
When to escalate or seek help
- If you haven’t heard anything within 30 days, send a courteous follow-up to the adjuster and confirm they received all records requested in your demand.
- If the insurer requests records, provide them promptly and track deliveries and communications in writing (email or certified mail).
- If the insurer delays for months without a good reason, file a complaint with Wisconsin OCI (see https://oci.wi.gov/Pages/Consumers/Complaints.aspx) and consider consulting an attorney to evaluate a bad-faith claim or to send a demand that signals readiness to litigate.
Typical insurer tactics and what they mean
- “Reserved rights” letters or requests for more records: the insurer still investigates and may be protecting its coverage position. Provide what is requested but verify it is needed.
- Low initial offer: often a starting point for negotiation. Evaluate against your documented damages and future care needs, and consider a counteroffer if justified.
- Request for independent medical exam (IME): common when future care or causation is in dispute. An IME can add weeks to months to the timeline.
Helpful Hints
- Make the demand complete: include medical records, bills, wage loss documentation, photos, and a concise damages calculation. Complete demands often provoke faster responses.
- Document every contact: keep dates, names, and summaries of phone calls and copies of emails and letters. This helps if you must prove unreasonable delay later.
- Set realistic expectations: quick offers happen for clear, low-value claims. Serious injuries and contested liability take longer.
- Follow up in writing at 30 and 60 days if you do not receive a substantive response. Ask for a timeline for their decision.
- Use the Wisconsin OCI if you believe the insurer is engaging in unfair claim handling: https://oci.wi.gov/Pages/Consumers/Complaints.aspx.
- Consider talking to an attorney early if the demand is high-value, the insurer’s response is evasive, or liability is disputed. An attorney can manage communications and preserve legal remedies.
Disclaimer: This information is educational and does not constitute legal advice. It is not a substitute for consultation with a licensed attorney about your specific situation.