Often referred to as policy limits, insurance limits are caps on the amount of money an insurance company will pay for a covered loss. An insurance policy limit will be set out in the insurance policy, often on the declarations page. This is a summary of the key characteristics about the insurance policy, including the policy limits, types of coverage, named insureds, etc.
If an otherwise covered loss results in a payment that exceeds the policy limit, the insurance company will only pay up to the insurance limits, with the insured having to personally pay anything above that threshold.
How Insurance Companies Make Payments for Personal Injury Claims
When making an insurance payment for a personal injury claim, the recipient of the payment may be required to sign a release. This basically states that, as a condition of the person receiving the money, they waive their rights to sue the at-fault party.
How Long Does It Take To Receive Insurance Claim Payments?
For most claims, an insurance company must conduct its investigation within 15 days of claim notification and has 40 days to accept or deny the claim. If the insurer accepts the claim, California law requires payment within 30 days after having the release signed. In some cases, this 30-day deadline can be extended. This payment can also take one of several forms, such as:
- Paper check
- Electronic deposit
- Payment to a service provider, such as a vehicle repair shop or a hospital
- Payment to a lien holder
Talk to a California Insurance and Personal Injury Lawyer
If you’ve filed an insurance claim that could exceed policy limits, you may have other options to obtain full compensation. For example, the liable party might have other assets you can go after if you file a personal injury lawsuit. There might also be other at-fault parties that you can recover from, too. However, it’ll usually take the skills and experience of a lawyer to help navigate this complicated process.
Luckily, the lawyers at Maison Law can help. Contact us today for a free consultation and no-obligation case evaluation. You don’t pay us anything unless we can first recover money on your behalf.
