Interest on Unpaid Death Claim

[Mark]

I had a client that the company was waiting on medical records after the death claim and it took 5 months to pay her. She got 8% interest on her money. I think GA gives you 60 days to pay a claim without having to pay interest.

Does your state pay any kind of interest rates on death claims that take a while to pay or like this?

 

[LGilmore]

The ones I have handled have paid interest for every day after death. I don't know what my state's requirement is, sorry. I just assumed all companies pay their death claims that way.

 

[VolAgent]

As I understand it, interest starts once the insurance company receives proof of death. Claim form and death certificate.

If they choose to investigate, they run up the interest amount. So really, they probably hate doctors dragging it out as much if not more than the beneficiaries.