May 8, 2023

When Must the Insurance Adjuster Respond to Your Demand letter?

Before resolving any personal injury claim, you and your personal injury lawyer should send a demand letter to the insurance company of the individual/entity against whom you are filing a claim. This is one of the initial steps in proceedings related to personal injury.

The demand letter will give a comprehensive account of the incident that caused your injury and other associated information. Included in the summary will be your medical history, any losses and damages resulting from the incident, and the dollar amount you are willing to accept. 

Once the insurance company has received the demand letter, when must the insurance adjuster respond to your demand letter?

We will explain below.

How Long Does the Insurance Company Have to Respond to a Demand Letter?

The State of Texas has set a timeline for insurers to complete specific steps in claims handling. Government regulations specify when each step of the insurance process must be completed, giving insurance companies guidelines to follow. Adherence to the laws guarantees that all policy components are completed quickly. The set deadlines aim to keep the process streamlined and timely for all parties involved

You must notify the insurance company within 15 days of the initial filing to ensure the accurate processing of an insurance claim. This is followed by requests for additional information necessary to process and properly investigate the claim

Upon obtaining all the materials needed to evaluate a claim, the company must provide an answer within 15 days. If an extenuating circumstance presents itself, an extension may be needed. The organization must issue a settlement check within five days of claim approval.

Though personal injury cases have a deadline, they must be resolved in a few months. The time it takes to settle a case can vary greatly, depending on the specifics of the incident and the claim.

What Happens if an Insurance Company Does Not Respond to a Demand Letter?

If your insurance provider fails to respond to an official demand letter, your Texas-based personal injury lawyer may advise pursuing a lawsuit and bad faith claim. Such action suggests that the company is not fulfilling its legal and fiduciary duties and may trigger legal consequences for them.

Taking the legal route of filing a lawsuit to resolve a personal injury claim can be lengthy, potentially leading to delayed settlements. 

If you feel that your rights have been violated and fair compensation is due following an accident, then filing a lawsuit might be the only way to secure justice. Going to court can help ensure that you get what you deserve

Punitive damages are usually hard to come by, but if your lawyer believes you deserve it, then litigation is the only way to obtain them. Therefore, working closely with your attorney is essential to ensure your case is as strong as possible. 

What's the Next Step After the Demand Letter?

Typically, you anticipate receiving your settlement check within three to six weeks after signing a settlement release.

When you have signed the necessary forms with your lawyer, the insurance company will process the claim and then issue a check directly to your lawyer. Upon receiving the check, your lawyer shall deposit it into an escrow account. When the payment from the settlement is successfully processed, your lawyer will use it to cover any financial obligations you might have.

For example, you may have to pay your health insurance company and any hospital or medical provider for treatments that are connected with the accident. And, as detailed in the agreement when you initially retained them, your lawyer will deduct their fees after any incurred expenses have been taken care of.

Other than the legal fees, your lawyer could subtract court fees and expert witness fees from the total amount you owe. Once all those are paid off, a payment check will be issued to you by your attorney. This can be deposited into your bank account, allowing you to access and use the funds as required.

How Long Do Most Insurance Companies Take to Respond to a Demand Letter?

Several factors can impact the speed at which an insurance company will respond to your demand letter. These include the complexity of the issue, the amount of documentation required, and the amount of contact information provided. 

The following factors can impact the length of time it takes to respond:

  • The size of your claim is an essential factor when considering approval. If it is a large claim or your medical bills far exceed the at-fault party's coverage limits, higher-level approval may be needed to process it.
  • The size of an insurance company can significantly influence its ability to address claims. Larger companies usually have the staff and resources to answer claims faster, while smaller ones may take longer. Internal factors such as the adjuster's caseload can also affect the response time.
  • They might respond faster if you have already communicated with the insurer about your injuries or any medical bills. Recording all communications about these matters is advisable for faster resolution.
  • Pre-existing health issues can impact the time it takes for an insurer to respond. These can include any conditions that existed before the accident or treatment. It is important to disclose these details when claiming to ensure a response from your insurer.
  • The more expensive the insurance policy, the higher the potential costs for the insurer. To avoid paying out too much, insurers will carefully examine your claim to keep their exposure as low as possible.


If you have been wrongfully injured due to someone else's negligence, Rose Sanders Law Firm, PLLC is here to help you fight for the compensation you deserve.

Our Texas personal injury experts have the knowledge and skill to take your case to court and are willing to do so to secure maximum compensation for you. They will also not hesitate to apply aggressive legal tactics to defend your interests.

Our team is dedicated to providing personalized attention to every client. We take the time to understand your specific needs and customize our services to best fit them.

Don't hesitate to contact us now for a free case evaluation.

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