Detailed answer — typical timelines and what actually happens

There is no single fixed deadline under Alabama law that forces an insurer to make an initial settlement offer immediately after you send a demand. Instead, response time varies with the claim’s facts, the insurer’s procedures, and whether coverage or liability is disputed. Below are realistic timelines you can expect and why responses differ.

Immediate acknowledgement (0–14 days)

Most insurers acknowledge receipt of a demand quickly — often within a week or two. That acknowledgement may confirm they received your demand and are opening (or continuing) an investigation. If you do not receive any acknowledgement within 14 days, follow up by phone and in writing.

Initial review and information request (7–30 days)

The insurer will review the demand and the file. Typical early steps include: checking coverage limits, reviewing police and accident reports, ordering or requesting medical records, checking prior claims, and contacting the insured or witnesses. Insurers often request additional records or an authorization for medical records. This phase commonly lasts two to four weeks but can be shorter for simple property claims or longer for complex injuries.

Investigation and valuation (30–90 days)

The insurer must establish liability and value the damages. For small, clear liability claims with complete records, adjusters sometimes make an offer within 30 days. For moderate claims they may take 45–90 days while they collect records, obtain an estimate or lien information, or schedule an independent medical exam (IME). Catastrophic injuries, claims with disputed liability, or those involving multiple insurers often take several months to reach an initial offer.

When offers may be delayed beyond 90 days

Expect significant delay if any of the following apply: ongoing medical treatment with unknown future needs, coverage disputes, multiple parties or insurers, complex liability questions, pending lien negotiations, or when the insurer requests an IME. In such cases the insurer may not make any reasonable settlement offer until the prognosis is clearer.

Low-value or “fast-pay” claims (days to a few weeks)

For minor property damage or clear liability soft-tissue claims, insurers often make quick offers—sometimes within days—especially when the demand is modest and documentation is complete.

What an “initial offer” typically represents

The insurer’s first numeric offer is usually a starting point for negotiation. It may be lower than the value you expect. Insurers protect reserve funds and often test settlement appetite. You can accept, reject, or counter. Many cases settle after several rounds; some never settle before a lawsuit is filed.

Alabama regulatory context

Alabama regulates insurance conduct through the Alabama Department of Insurance. The Department publishes consumer guidance and enforces statutes and regulations addressing unfair claim settlement practices. For general information, see the Alabama Department of Insurance consumer pages: https://www.aldoi.gov/. For statutes and the state legislature site, consult: https://www.legislature.state.al.us/.

Note: This article does not provide legal advice. If you have specific timing concerns or suspect bad faith delay, contact an attorney who practices in Alabama insurance claims.

Common factors that lengthen or shorten the timeline

• Completeness of your demand: A clear demand with full medical records, invoices, photos, and receipts speeds review.
• Severity and ongoing treatment: Active or future medical needs increase uncertainty and typically extend negotiation.
• Liability clarity: Clear fault cases settle faster than disputed-fault cases.
• Coverage limits and policy issues: Coverage disputes or multiple policies slow progress.
• Insurer investigation practices: Some carriers routinely take longer to gather IME reports, lien figures, or property estimates.
• Medical liens and Medicare/Medicaid: Resolving lien or subrogation issues can add weeks or months.
• Third-party coordination: When several insurers are involved, coordination causes delay.

Practical steps to accelerate a response

1. Send a clear, documented demand: include a concise demand letter stating your position, the damages amount you seek, all medical records, bills, receipts, loss documentation, and a signed medical authorization if appropriate.
2. Set a reasonable response deadline: e.g., “Please respond in writing within 30 days” — this creates a clear expectation you can later point to in follow-up.
3. Follow up promptly: call and send a short written follow-up if there’s no acknowledgement within 7–14 days, and again after 30 days if no substantive response.
4. Keep records of all communications: note dates, names, and summaries of phone calls; keep emails and certified mail receipts.
5. Provide outstanding records quickly: when the insurer asks for records or clarification, provide them quickly to prevent needless delay.
6. Consider mediation or demand expansion: if the insurer stalls, propose nonbinding mediation or provide additional valuation support (e.g., life-care plan for catastrophic injuries).
7. Preserve your rights: track the statute of limitations for your claim and consider tolling agreements or filing suit before the deadline if necessary.

When to get an attorney involved

Consider hiring an attorney if any of the following occur:

• The insurer ignores reasonable documentation and fails to respond after repeated follow-ups.
• There is an unexplained, substantial delay (months) with active treatment and no good reason.
• Coverage is disputed or the insurer denies the claim incorrectly.
• The claim value is significant or the injuries are complex.
• You receive an unreasonably low initial offer that does not reflect documented damages.

An Alabama attorney can help prepare stronger demands, push for timely responses, negotiate releases that protect you from future claims, and file suit to protect statute of limitations rights if needed.

Helpful hints

• Send demands by certified mail and keep proof of delivery.
• Be concise in the demand letter: state the facts, liability basis, damages, and a clear dollar demand.
• Include a signed medical authorization to avoid delays obtaining records.
• Ask for an acknowledgement and set a 30-day response window in the letter.
• Track medical treatment and update the insurer with new records as they arrive.
• If you negotiate, reserve a right to re-open discussions if new medical issues emerge (avoid overly broad full releases without legal review).
• Keep an eye on deadlines: even if negotiating, you may need to file suit before the statute of limitations runs out.