Insurance Demand Letter Response Time

Waiting for an insurance company to respond to a demand letter can be stressful. In Nevada, insurance companies are allowed 30 working days to make a decision on a claim after receiving completed proof-of-loss forms. However, there is no law that requires an insurance company to respond to a demand letter, and there are several factors that can delay the amount of time it takes for a response.

Insurance Demand Letter Response Time

Best-Case Scenario

Hopefully, the insurance company will respond to your demand letter within 30 working days, as long as you provide complete information on everything they need. When you write the demand letter, you can set your own deadline, but it does not mean the insurer will meet it.

Factors That Can Delay the Insurance Demand Letter Response Time

The following factors can impact how long an insurance company takes to respond to your demand letter:

  • Incomplete Information: The insurance company may have to ask for more information if you do not provide it in the initial demand package.
  • Extension: The insurance company may have to request an extension if their adjusters have a large caseload or due to the size of your claim. The larger your claim, the more investigation it will require.
  • Lack of Prior Communication: If you or your personal injury lawyer have not communicated with the insurance company prior to sending your demand letter, they may take longer to respond if they must determine whether it is a valid claim.
  • Pre-existing Injuries: Pre-existing injuries or conditions do not disqualify you from recovering compensation, but suspicions may be raised about reimbursing medical care after the accident you were already receiving. As a result, you must be able to provide medical evidence that the accident furthered or aggravated your injury.
  • The Policyholder’s Limits: The insurance company will need time to thoroughly review your claim and look for ways to minimize liability if their policyholder’s policy limits are substantially large.

Common Insurance Company Responses to a Demand Letter

Insurance companies will send a timely response to a demand letter in most cases. When they do, it will often consist of one of the following:


The insurance adjuster may reject your claim, even if it is valid. Common reasons include questions about fault, your injuries, a lack of documentation to support your claim, too high of a settlement demand, or the adjuster may simply be overwhelmed or difficult.

Counter Offer

The insurer may respond with a counteroffer to your settlement demand. It is your choice whether to accept or counter it, and negotiations may go back and forth for some time.


A response from an insurance company accepting a demand letter is rare. In the event it does occur, you will receive your requested compensation after signing a release of liability form.

If you do not receive any response from the insurance company or disagree with their response, you and your attorney can send a follow-up letter. If you still get no response or an unfavorable one, the next step is often to file a lawsuit.

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