Illinois Insurance State Practice Exam

In how many days must a payment be offered when liability is affirmed?

1. 15 days

2. 30 days

3. 45 days

4. 60 days

The correct answer is: 30 days

When liability is affirmed in an insurance claim, the insurer is required by Illinois law to offer payment to the claimant within 30 days. This requirement is designed to ensure prompt and fair handling of claims, allowing claimants to receive due compensation in a timely manner after their claim has been acknowledged as valid. The 30-day timeframe reflects the need for insurers to thoroughly assess claims and confirm liability before making a payment. It strikes a balance between the insurer's need for due diligence in processing a claim and the claimant's need for financial resolution following an incident that has given rise to the claim. Failing to meet this timeline can result in penalties for the insurer, highlighting the importance of adherence to this regulation.