In Illinois, you may be able to sue an insurance company for taking too long to handle your claim when the delay is unreasonable and without a valid explanation. Insurance companies are required to handle claims in a timely and honest way, even if a claim has not been formally denied.
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Waiting on an insurance claim can be frustrating. While bills continue to add up, claims can sit in limbo. Medical treatment may be delayed, repairs may go unfinished, and missing work can lead to lost income. These delays can create real financial strain.
Under Illinois law, unexplained or unreasonable delays may be considered bad faith. If an insurance company fails to investigate, communicate, or resolve a claim within a reasonable time, legal options may be available. Understanding how long insurers have to act, what counts as an unreasonable delay, and when to speak with a Chicago bad faith insurance attorney can help you protect your rights.
If your insurance claim has stalled, and you are not getting clear answers, it may be time to explore your options. A consultation can help you understand your next steps. Call Ankin Law at 312-600-0000.
How Long Does an Insurance Company Have to Respond in Illinois?
Illinois insurance regulations define “reasonable promptness” as responding to claim communications within 15 working days. When a claim is resolved, insurers are generally required to issue payment within 30 days.
However, there is no firm deadline for approving or denying a claim. Instead, insurers are required to handle claims within a reasonable amount of time. That is where delays can become a problem.
If more time is needed, the insurer must provide written updates explaining why the delay continues and what steps are being taken to move the claim forward. When these updates rely on vague language, such as “under review,” without meaningful progress or detail, it may signal that the insurance company is acting in bad faith.
What Is Considered an Unreasonable Delay?
A delay becomes unreasonable when it goes beyond what’s needed to fairly investigate and resolve a claim. What’s “reasonable” can vary based on the complexity of the claim, the amount of damages, and how easy it is to gather evidence. Still, certain patterns often signal a problem, such as long periods of silence, repeated requests for the same documents, multiple adjuster changes, vague status updates, or no clear explanation for the delay. These signs may indicate the insurer is stalling rather than working toward a resolution.
Why Insurance Companies Delay Claims
Delays can create pressure on claimants, and that pressure often works in the insurer’s favor. When people can’t afford medical care, car repairs, or everyday expenses, they may feel forced to accept a low settlement just to move forward.
The longer a claim drags on, the harder it can be to prove. Medical records may go missing, witnesses can become unavailable, and insurers may try to shift blame for your injuries. Some insurance companies also delay simply to run out the clock. In Illinois, you have a limited time to file a lawsuit. If that deadline passes, you lose the right to take legal action, even if your claim is valid.
Understanding the Insurance Claim Process
Delays are often blamed on the claim process. Here’s how it’s supposed to work.
- Gathering evidence: Right after the incident, you should document everything. This includes photos, reports, receipts, and medical records. Insurers often claim they’re waiting on documents, so keep copies of everything you submit.
- Filing the claim: A “first-party” claim is filed with your own insurance company. A “third-party” claim is against someone else’s insurer. Your own insurer owes you a duty of good faith, meaning they must deal with you honestly and fairly.
- Investigation and decision: The insurer must investigate promptly. This doesn’t mean they can leave your file open forever. After investigation, they should accept, deny, or negotiate your claim.
If they drag out any of these steps without reason, they may be violating your rights under Illinois law.
Can You Sue an Insurance Company for Taking Too Long?
Yes. If the delay is unreasonable and without cause, it may be considered bad faith.
Under Illinois law, insurers must act in good faith when handling claims. This includes investigating, negotiating, and paying out claims fairly and on time. When they don’t, they may face a separate lawsuit for bad faith.
Delay alone isn’t enough. The delay must be unreasonable, and it must harm you in some way, such as by increasing your losses or forcing you to accept less than you’re owed.
A bad-faith lawsuit is separate from your original claim. It allows you to seek additional compensation for the harm caused by the insurer’s misconduct.
What Compensation May Be Available in a Bad Faith Claim?
If your insurer acted in bad faith, you may be entitled to more than just the value of your original claim.
Depending on the case, you might recover:
- The full amount of the original claim
- Interest on delayed payments
- Statutory penalties under Illinois law
- Attorney’s fees in some cases
The exact amount depends on how the delay impacted you, and whether the court finds the insurer’s conduct to be unlawful.
Frequently Asked Questions
Can I sue an insurance company even if my claim was not denied?
Yes. A claim does not need to be denied for bad faith to exist. An unreasonable delay that causes harm, such as financial loss or pressure to accept a low settlement, may support a bad faith claim.
Does hiring a lawyer make an insurance company act faster?
In many cases, insurance companies respond more promptly once an attorney becomes involved. Legal representation can help ensure deadlines are taken seriously and that the insurer follows its obligations under Illinois law.
What should I do if my insurance claim keeps getting delayed?
If your claim has been delayed for months, updates are vague, or you are not receiving clear answers, it may help to speak with a lawyer. Getting guidance early can help you understand your options and avoid missing important deadlines.
When to Speak with a Chicago Bad Faith Insurance Attorney
You don’t need to wait for the insurer to do the right thing. It may be time to contact a lawyer if your claim has been delayed for months without resolution, the insurer won’t give you clear or timely updates, or you are being pressured to settle for less than your costs.
Insurance companies often respond faster once an attorney gets involved. An experienced bad faith attorney can protect your rights and help hold the insurer accountable.
Deadlines matter. If you wait too long, you may lose your ability to take action. The sooner you get legal guidance, the more options you may have.
Talk to a Chicago Bad Faith Insurance Attorney
If you’re facing long delays from your insurer and not getting answers, don’t wait.
Speak with a trusted bad faith insurance attorney in Illinois today. Howard Ankin, founder of Ankin Law and a third-generation Chicago attorney, leads one of the largest injury firms in Illinois. He’s helped thousands navigate unfair claim delays.
Call 312-600-0000 to get started with a free consultation.
