How long does an insurance company have before they must pay out on a life insurance claim?
I’d like to know if there’s a law or rule (especially in California) regarding the time between the death and the life insurance payout.
Best answer:
Answer by phil_palmer
A reputable company will pay within 10 days of recieveing the death certificate. However, if there is anything quesitionable (murder by the beneficiary, suicide, etc) they will delay it.
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Check with the California Dept of Insurance (may be called Insurance Commissioner) Insurance companies are allowed time to investigate, however they have to comply with state laws and regulations
Hi-
If it is after the 2 year incontestability period, then a reputable company should take 2 weeks at most. If it is during the first two years of insurance, the insurance company has a right to delay to investigate.
If you have a complaint I would recommend going to www.insurance.ca.gov
Here is a link to the California Department of Insurance website specifically relating to claims payment issues: