Prompt processing of payment by insurer
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AR Code › Title 23 › Chapter 63 › Subchapter 1 › Section 23-63-107
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(a) An insurer shall not intentionally or unreasonably delay, for more than three (3) business days after presentment for collection, the processing of any properly executed and endorsed check, draft, or electronic funds transfer issued in settlement of an insurance claim. (b) It is the intent of the General Assembly that an insured or a claimant be paid the insured's or the claimant's settlement proceeds at the earliest possible time. (c) Any insurer violating this section shall pay the insured or the claimant a penalty of two hundred dollars ($200) or fifteen percent (15%) of the face amount of the check, draft, or electronic funds transfer, whichever is higher. Amended by Act 2021, No. 367,§ 10, eff. 7/28/2021. Acts 1983, No. 477, § 3; A.S.A. 1947, § 66-2018.
(a) An insurer shall not intentionally or unreasonably delay, for more than three (3) business days after presentment for collection, the processing of any properly executed and endorsed check, draft, or electronic funds transfer issued in settlement of an insurance claim.
(b) It is the intent of the General Assembly that an insured or a claimant be paid the insured's or the claimant's settlement proceeds at the earliest possible time.
(c) Any insurer violating this section shall pay the insured or the claimant a penalty of two hundred dollars ($200) or fifteen percent (15%) of the face amount of the check, draft, or electronic funds transfer, whichever is higher.
Amended by Act 2021, No. 367,§ 10, eff. 7/28/2021.
Acts 1983, No. 477, § 3; A.S.A. 1947, § 66-2018.
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