Notice of a claim is, of course, the reason for opening an insurance claim file. In many jurisdictions, however, the closely scrutinized handling of a hurricane or another catastrophe claim requires special awareness. Many states, such as Michigan, carry statutes requiring that claims be paid in whole or in part within a reasonable amount of time. In other states, such as Wisconsin, similar statutes stipulate that any partial amount of an insurance claim is considered overdue if not paid within a time certain — 30 days, under the Wisconsin statute — after such written notice is furnished to the insurer.

The Wisconsin Supreme Court, parenthetically, has ruled that this statutory requirement is not the same as good-faith or bad-faith claim handling. Instead, the statutory penalty applies regardless of the manner in which the particular insurance claim is being handled. Thus, a claim professional must determine if there is sufficient proof to warrant paying part of a claim that has been filed under an insurance policy, even if the particular proof does not establish coverage for the entire claim.

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