What is the timeframe insurers must adhere to for paying claims under the Prompt Pay Law?

Under Vermont's Prompt Pay Law, insurers are required to pay claims within 30 days of receiving the claim. This timeframe is established to ensure that policyholders receive timely payments for their claims, contributing to a more efficient processing system and improving customer satisfaction.

By adhering to a 30-day requirement, insurers can maintain a standard that supports the financial well-being of their clients, as delayed payments can result in significant hardships for those relying on timely reimbursements. This law provides a framework that balances the need for insurers to thoroughly review and process claims while also ensuring that the interests of policyholders are prioritized.