When you are injured because of another person’s negligence, the last thing you expect is resistance from the insurance company responsible for covering your losses. Unfortunately, delays in the settlement of personal injury claims are common. These delays not only increase stress during a difficult time, but they also risk compounding financial burdens such as unpaid medical bills and lost wages. In Montana, the law requires insurance companies to handle claims fairly and in good faith. However, when they fail to do so, you have rights and remedies under state law. At Miller Tourtlotte Law, PLLC, we assist injury victims across Montana in holding insurance companies accountable when delays threaten their recovery.
Understanding Why Insurance Companies Delay Settlements
Insurance companies often present themselves as efficient and responsive businesses, but in practice, they sometimes benefit financially from stalling. By delaying payment, an insurer continues to invest and earn interest on funds that rightfully belong to you. In other situations, delay is used strategically, with the hope that you will become desperate enough to accept a settlement for less than your claim is worth.
Some delays are attributed to legitimate investigations into liability or damages, but even these investigations must be carried out promptly and reasonably. Under Montana law, an insurer cannot extend an investigation indefinitely without explanation. When weeks turn into months, or when the company repeatedly requests the same information without advancing the claim, these are signs that the insurer may be engaging in improper conduct.
Montana Law Governing Insurance Claim Practices
Montana has enacted clear statutory protections to address unfair claim settlement practices. The most important provision for injured persons is MCA § 33-18-201, which prohibits insurers from engaging in certain behaviors. Specifically, the statute forbids failing to acknowledge or act reasonably promptly upon communications, failing to conduct a reasonable investigation, refusing to pay claims without conducting such an investigation, and not attempting in good faith to settle claims when liability has become reasonably clear.
Unlike some jurisdictions, Montana law does not prescribe exact deadlines, such as a fixed number of days in which an insurer must pay. Instead, the standard applied is reasonableness. This means each case must be assessed on its own facts. A delay may be justified where liability is uncertain or where the damages are complex, but it is not justified if the insurer is using stalling tactics without legitimate cause.
The Montana Supreme Court has also recognized common law bad faith actions, which allow an insured to pursue damages when an insurer violates its duty to act in good faith. These claims can provide remedies beyond the original settlement value, including compensation for emotional distress and, in some cases, punitive damages if the conduct is egregious.
Recognizing When Delay Becomes Improper
It is important to distinguish between ordinary processing times and conduct that violates your rights. If an insurer fails to return calls, ignores written requests for information, or offers only vague explanations for prolonged delays, these are warning signs. Similarly, when the company acknowledges liability but withholds payment without justification, that conduct may cross the line into bad faith.
Another common issue arises when insurers engage in what appears to be an endless cycle of document requests. While insurers are entitled to verify information, they are not entitled to harass you or to use paperwork as a means of avoiding timely payment. If you believe that your insurer is intentionally slowing the process, Montana law gives you the ability to challenge that behavior.
The Consequences of Delayed Settlements for Victims
For an injured person, a delayed settlement has tangible and often devastating consequences. Medical bills continue to arrive. Creditors may call. In serious injury cases, a victim may be unable to work for months, leaving families without a steady income. The stress of financial instability adds to the physical and emotional toll of the accident itself.
From a legal standpoint, delay can also impact your ability to preserve evidence, maintain witness cooperation, and pursue necessary treatment. If insurers delay long enough, they may create leverage in negotiations by exploiting your urgent need for relief. This is precisely why Montana’s statutory protections exist: to prevent companies from gaining an advantage at the expense of victims’ rights.
Steps You Can Take If the Insurance Company Delays Your Settlement
If you find yourself in this position, the first step is to carefully document your communications with the insurer. Keep copies of letters, emails, and notes of phone conversations. Document the dates of requests made and the responses you receive. Such evidence is crucial if you later need to demonstrate that the company failed to act reasonably.
You should also be aware of Montana’s statute of limitations for personal injury claims. Under MCA § 27-2-204, you generally have three years from the date of injury to file a lawsuit. While insurers may hope that delay will weaken your bargaining power, it should never be allowed to push your claim past the statutory deadline.
If the delay continues despite your efforts to communicate and cooperate, consulting with an attorney experienced in Montana insurance law is often the most effective step. An attorney can evaluate whether the delay violates MCA § 33-18-201 or constitutes common law bad faith. In some cases, simply having counsel intervene is enough to motivate the insurer to act, while in others litigation may be necessary.
Montana Personal Injury Lawyer
Delays in settlement can feel overwhelming, but you are not without options. Montana law provides protections to ensure that insurers act fairly and promptly, and when they do not, you can pursue legal remedies. At Miller Tourtlotte Law, PLLC, we represent clients across Montana who are facing unreasonable delays in their personal injury claims. We have the experience to identify when an insurer has crossed the line into unlawful behavior and to take action on your behalf.
If your personal injury settlement has been delayed, you do not need to face the situation alone. Contact Miller Tourtlotte Law, PLLC by calling (406) 888-2222 or contacting us online for a free consultation. Our personal injury lawyers in Montana will review your case, explain your rights, and help you pursue the settlement you deserve.
