How Long Does An Insurance Company Have to Issue Payment After A Settlement Has Been Reached?
If you decide to settle a civil matter, how long will it take before you receive payment? What happens if you do not receive payment within a certain time period? Illinois statute 735 ILCS 5/2-2301 is designed to assist in answering your questions.
735 ILCS 2-2301 ("§2-2301") provides guidelines for the exchange of settlement documents and payment after a civil matter has been settled. Specifically, §2-2301 applies to settlements reached in cases involving personal injury, property damage, wrongful death, or tort actions involving a claim for money damages. In these instances, a release must be tendered to the plaintiff by the settling defendant within fourteen (14) days of written confirmation of settlement.
In addition, §2-2301 generally requires a settling defendant to pay all sums due to the Plaintiff within thirty (30) days of tender by the plaintiff of the executed release. If payment has not been made in a timely fashion, a judgment shall be entered against that defendant for the amount set forth in the executed release, plus costs incurred in obtaining the judgment, as well as statutory interest outlined in §2-1303.
There are some exceptions to general rules outlined in §2-2301. Namely, §2-2301 does not apply to the State of Illinois; any State agency, board, or Commission; any state officer or employee sued in his or her official capacity; any person or entity that is being represented by the Attorney General and provided indemnification by the State pursuant to the State Employee Indemnification Act; any municipality or unit of local government as defined under Article VII of the Illinois Constitution; and/or class action lawsuits.
If you or a loved one are contemplating the pursuit of a civil matter, or are contemplating the settlement, or feel that you have been waiting too long for a settlement check, contact the experienced team at Ball & McCann, P.C. for a free consultation so we can review the specific facts of your case, and ensure your rights are protected.