The next stop on our 50-state tour of claims handling guidelines is the Yellowhammer State – Alabama.

In Alabama, an insurance carrier must acknowledge reciept of a claim within 15 calendar days of reciept of the claim. Ala. Admin. Code r. 482-1-125.06(1). They must also provide all claims forms and instructions for their use within 15 calendar days from the date of their reciept of the claim. Ala. Admin. Code r. 482-1-125.06(4). They must respond to all communications from a claimant (where a response is requested) within 15 calendar days. Ala. Admin. Code r. 482-1-125.06(3). The insurance carrier must advise of acceptance or denial of a claim within 30 days of the reciept of a proof of loss, if a denial it must be in writing. Ala. Admin. Code r. 482-1-125.07(1). If additional time for investigation is needed, the insurance carrier must state the need and the reasons therefore within 30 days after their reciept of a proof of loss and then every 45 days thereafter. Ala. Admin. Code r. 482-1-125.07(2).

An insurance carrier in Alabama also must not knowingly prolong or withold from negotiations with the intent of having the statute of limitations run out. Ala. Admin. Code r. 482-1-125.07(4). Absent an agreement in the policy to the contrary, claim payments must be made within 30 days of acceptenace of liability or reaching an agreement for a compromise settlement. Ala. Admin. Code r. 482-1-125.07(5). Finally, absent a policy provision to the contrary, an insurer cannot deny or withhold payment of a claim on the basis that another party should be responsible. Ala. Admin. Code r. 482-1-125.07(3). Thus the carrier must pay the claim and pursue the potential third party in subrogation.

This video was chosen when I first decided to write this series: