Does the insurance company owe you interest on your settlement?
An insurance company is required to “promptly pay every insurance claim” within 30 days after the insurer is furnished a written notice of a covered loss and the amount of the loss. See Wis. Stat. § 628.46(1). If an insurance company does not promptly pay the insurance claim, they may be required to reimburse you at the rate of 12% per year. Therefore, depending on the amount of your settlement, the interest could represent a substantial amount of money for the client. The above statute is generally applicable between you and your insurance company. However, in 2006, our Supreme Court expanded the applicability of Wis. Stat. § 628.46 to third party liability cases. In the most common circumstances this means that if you have a claim against another driver’s insurance company and they do not pay the claim timely, that insurance company may be required to pay you an additional 12% interest on your settlement. See Kontowicz v. American Standard Ins. Co., 2006 WI 48, 290 Wis.2d 302.