Under Wisconsin law, insurance companies must pay undisputed claims within 30 days of receiving written notice of the claim. If they do not, the claims are subject to 12 percent interest. In an opinion just issued, however, the Court of Appeals of Wisconsin held that that 12 percent rate does not apply to personal injury settlements that are untimely paid. In that case, Robert Singler settled a personal injury claim with Zurich American Insurance for $1.9 million. Because Zurich did not pay the settlement within 30 days, Mr. Singler sought 12 percent interest on the settlement. The trial court agreed with Mr. Singler and awarded him an additional $23,000 in interest. The court of appeals reversed the trial court, holding that the statute which provides for the 12 percent interest rate does not apply to insurance claim settlements. Instead, the court of appeals awarded Mr. Singler five percent interest, relying upon a judgment debtor statute. Read the entire court of appeals decision here.
The Wisconsin personal injury lawyers of Samster, Konkel & Safran have extensive experience helping clients with claims against insurance companies. We assist in recovering for personal injuries, pain and suffering, lost wages and property damage. If you or someone you know has been injured, contact us for a free online claim evaluation.