Have you ever had difficulty receiving payment from an insurance adjuster in a timely manner? It can be frustrating when you’re waiting for the funds you deserve after a loss or accident, only to be met with delays and excuses. But what exactly causes these delays? Why is the adjuster not paying you on time?
Why Won’t the Adjuster Pay You on Time?
In most cases there is absolutely nothing that prevents an adjuster from paying you on time. It’s just a matter of their interest and inclination in doing so.
In some cases when the employer is self-insured, they must send money periodically to the insurance company. In those instances, we’ve heard adjusters use the excuse that they are waiting for money from the employer but that’s just an excuse. It is the adjuster’s responsibility to make sure she has proper reserves.
More often we suspect that the adjuster is toying with you. They knows that under current North Carolina law the check isn’t due for ten days after the time you missed work. Thus, if you missed the first day of the month the adjuster doesn’t have to pay you until the tenth.
What if they don’t? Well, nothing happens immediately. If they’re fourteen days late – the twenty-fourth day from the date of payment- then the Industrial Commission “may” impose a 10% penalty. Thus, if the adjuster sits on your $500 weekly check for three weeks the NCIC might sanction her $50.
Mind you, the Industrial Commission is open to waiving that penalty if the defendants present compelling evidence that they shouldn’t be fined. In the past we’ve seen the Industrial Commission waive the late penalty for reasons which included “I forgot”, “my attorney didn’t tell me to”, and “I put in an order for it to be mailed… something must have happened.”
More likely than not the NCIC will impose the penalty, but questions certainly remain as to whether that’s a significant deterrent. We’ve had luck with taking a different approach and have obtained orders requiring an adjuster to pay timely. If there is a consistent failure to comply with this order, we’ve been able to get sanctions with some teeth to them.
Is It Allowed for Adjusters to Not Pay on Time?
No, it is not allowed for adjusters to not pay on time. Adjusters are responsible for evaluating insurance claims and determining the appropriate amount of compensation to be paid to policyholders. This process should be carried out in a timely manner and in accordance with the terms and conditions of the insurance policy.
Insurance companies have a legal obligation to act in good faith and deal fairly with their policyholders. This includes promptly investigating claims, making a fair assessment of the damages, and providing timely payment. Failure to do so can result in legal consequences, such as breach of contract claims or bad faith lawsuits.
However, there may be certain circumstances that can cause delays in the payment process. For example, if there is a dispute over the coverage or the amount of damages, the adjuster may need additional time to gather evidence and negotiate with the policyholder. Additionally, if there are administrative issues or technical difficulties, it could also cause delays in the payment process.
If you are experiencing delays in receiving payment from an adjuster, it is important to communicate with them and inquire about the reasons for the delay. In some cases, it may be a simple oversight or a misunderstanding that can be resolved through open dialogue. However, if you believe that the adjuster is intentionally delaying payment without valid reasons, you may need to seek legal advice and take appropriate action to protect your rights as a policyholder.
How Do You Improve Timeliness of Payments?
Improving the timeliness of payments from an adjuster can be a frustrating task, but there are several steps you can take to increase the chances of receiving your payment on time.
1. Clear and Accurate Documentation
Make sure to provide all the necessary documentation and information required by the adjuster. This includes invoices, receipts, and any supporting documents that validate your claim. Clear and organized documentation can help expedite the payment process.
2. Follow up Regularly
Don’t hesitate to follow up with the adjuster to inquire about the status of your payment. Politely and professionally remind them of the agreed-upon payment terms and deadlines. Regular communication shows your commitment and can prompt the adjuster to prioritize your payment.
3. Establish Clear Payment Terms
Before starting any work or providing services, it’s essential to establish clear payment terms with the adjuster. Clearly outline the payment schedule, due dates, and any penalties or late fees for delayed payments. Having these terms in writing can help hold the adjuster accountable and ensure timely payments.
4. Build a Good Relationship
Developing a positive and professional relationship with the adjuster can go a long way in improving the timeliness of payments. Be responsive, cooperative, and maintain open lines of communication. A good relationship can encourage the adjuster to prioritize your payment and resolve any potential issues promptly.
5. Escalate the Issue if Necessary
If you have followed all the necessary steps and still face delays in payment, it may be necessary to escalate the issue. Contact a supervisor or manager within the adjuster’s organization and explain the situation. They may have the authority to expedite the payment or provide a resolution.
6. Consider Legal Options
In extreme cases where all other attempts have failed, you may need to consider legal action. Consult with an attorney specializing in insurance or contract law to explore your options and determine the best course of action.
