Reasonable Promptness, as used in Section 154.6(b) of the Code [215 ILCS 5/154.6(b)] , shall mean a maximum of 15 working days from receipt of communication from a claimant or insured.
Prompt, Fair and Equitable Settlement of Claim
Under Illinois admin code, an insurer must conduct a “prompt investigation,” which applies to all activities
of the insured related directly or indirectly to the determination of liability based on claims under the
coverage afforded by the policy and shall be evidenced by a bona fide effort to communicate with all
insureds and claimants where eligibility is reasonably clear within 21 working days after a notification of
loss. See Ill. Admin. Code tit. 50, § 919.40.
Furthermore, an insurer must affirm or deny liability on claims within a reasonable time and shall
offer payment within 30 days of affirmation of liability, if the amount of claim is determined and not in
dispute. For those portions of the claim which are not in dispute and the payee is known, the insurer
shall tender payment within 30 days. See Ill. Admin. Code tit. 50, § 919.50(a).
On first-party claims if a settlement of a claim is less than the amount claimed, or if the claim is
denied, the insurer must provide to the insured a reasonable written explanation of the basis of the
lower offer or denial within 30 days after the investigation and determination of liability is completed.
See Ill. Admin. Code tit. 50, § 919.50(a)(1).
