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Massachusetts Bill Would Place Time Limit on Insurance Claims Investigations

A committee of the Massachusetts legislature held a hearing this week on H. 1151, a bill that would limit the amount of time insurance companies have to investigate the cause of a loss, and would require the insurer to make payments for the vehicle while the investigation is ongoing.


This bill, which was filed by Rep. Joseph D. McKenna, seeks to remove the burden on an individual who is required to make payments on a vehicle, even when the vehicle is no longer in use, while an insurance investigation is ongoing. These investigations can be lengthy, which is why the legislation also seeks to limit the time permitted for a claim investigation to just 30 days.


Under the terms of this bill, the insurance entity would be required to make payments to the financial institution that holds the title of the vehicle during the course of the investigation. If the cause of the loss is found to be fraudulent, the insurance entity is able to reap reimbursement from the insured.

To read more about this legislation, click here.