Notice About interest for Life & Disability Claims

Every state has enacted laws or regulations dealing with insurer’s delaying payment of claims. Illinois law requires that insurance companies disclose the following information regarding the settlement of the death claim on the Ordinary Life insurance and Ordinary Accident polic (y /ies) issued in the state of Illinois:

Interest shall accrue on the proceeds payable because of the death of the insured, from date of the death, at the rate of 10% annually on the total amount payable or the face amount if payments ate to be made in installments until the total payment or first installment is paid, unless payment is made within 31 days from the latest of the following to occur:

1. The date that due proof of death is received by the insurance company;
2. The date that the insurance company receives sufficient information to determine its liability, the extent of the liability, and the appropriate payee legally entitled to the proceeds; or
3. The date that legal impediments to payment of the  proceeds that depend on the action of parities other than the insurance company are resolved and sufficient evidence of the same is provided to the insurance company; legal impediments to the payment include, but are not limited to,
   1. The establishment of guardianships and conservatorships,
   2. The appointment and qualification of trustees, executors, and administrators, and
   3. The submission of information required to satisfy State and federal reporting requirements.