How many days do insurers have to pay the amount agreed upon in a settlement after the agreement is made?

In New York, insurers are required to pay the amount agreed upon in a settlement within five days after reaching that agreement. This timeframe ensures that claimants receive their compensation promptly following the resolution of their claim. The five-day window is designed to promote efficiency and to provide assurance to policyholders that their settlements will be honored in a timely manner.

A longer timeframe, such as 10, 15, or 30 days, would not align with New York's regulations regarding the timely payment of claims in auto damage situations. The compact period reflects the importance of quick responses in the insurance industry, which is vital for maintaining customer trust and satisfaction. Thus, understanding this requirement is essential for anyone involved in the appraisal or claims process within the state.