Guide · Insurance
How long does an insurer have to pay a claim in California?
Under California’s Fair Claims Settlement Practices Regulations, an insurer generally must acknowledge a claim within 15 days, accept or deny it within 40 days of receiving proof of claim, and pay an accepted claim within 30 days. If the insurer needs more time to decide, it must explain why in writing and update you every 30 days.
The deadlines, in order
| Step | Deadline | Rule |
|---|---|---|
| Acknowledge the claim, provide forms and begin investigating | 15 calendar days after notice of the claim | § 2695.5(e) |
| Respond to your communications | 15 calendar days | § 2695.5(b) |
| Accept or deny the claim | 40 calendar days after receiving proof of claim | § 2695.7(b) |
| If more time is needed, explain why in writing | Within the 40 days, then every 30 days | § 2695.7(c)(1) |
| Pay an accepted claim | 30 calendar days after acceptance | § 2695.7(h) |
What counts as proof of claim
Proof of claim is any evidence of the claim that reasonably supports the amount and the insurer’s liability, such as estimates, invoices, photos and a proof of loss form (§ 2695.2(s)). The 40-day clock runs from when the insurer receives it, so send documents in writing and keep proof of delivery.
Property and business claims
These deadlines apply to property and business claims as well as auto claims. For a commercial property or business interruption claim, the insurer may ask for financial records to support lost income. Respond promptly so the delay can’t be blamed on you.
Deadline
Your own deadline to sue may be one year
Property policies in California often require suit within 12 months of the loss (Ins. Code § 2071). That period is paused while the insurer considers the claim (Prudential-LMI v. Superior Court), and the pause ends when the claim is denied.
If the insurer misses a deadline
A missed deadline does not automatically mean the claim must be paid, but it is a regulatory violation and can be evidence of bad faith. Write to the adjuster, cite the rule and ask for a decision. You can also file a complaint with the California Department of Insurance.
Nevada
Nevada sets its own timing rules in NRS 686A.310 and the Nevada Administrative Code, and an insured can sue for damages caused by listed unfair practices.
Sources
- California Code of Regulations, title 10, § 2695.5, duties upon receipt of communications.
- California Code of Regulations, title 10, § 2695.7, standards for prompt, fair and equitable settlements.
- California Code of Regulations, title 10, § 2695.2, definitions.
- California Insurance Code § 2071, standard form fire insurance policy.
- Prudential-LMI Commercial Insurance v. Superior Court (1990) 51 Cal.3d 674.
- Nevada Revised Statutes § 686A.310.
Common questions
Don’t see yours? Call (323) 410-0300.
How long does an insurance company have to accept or deny a claim in California?
Generally 40 days from receiving proof of claim, unless it notifies you in writing that it needs more time and explains why.
How long does an insurer have to pay after accepting a claim?
Generally 30 days after accepting the claim.
What if the insurer keeps asking for more documents?
Respond in writing and keep copies. The insurer must tell you what it needs and why, and must update you every 30 days while it investigates.
Related
The information on this page is general and is not legal advice. Contacting the firm does not create an attorney-client relationship. Prior results do not guarantee a similar outcome.