Insurance companies sometimes seek out ways to deny a claim even if the person making the claim is entitled to be paid. Sometimes, even when they pay, insurance companies delay an excessively long time in doing so. Such an excessive delay was the basis of an Ascension Parish man’s lawsuit against his auto insurer. The man lost his case, though, after a trial court and the Louisiana Court of Appeal decided that the insurance company’s payment was made in a timely manner, even though the man’s lawyer did not receive the insurance company’s check until three days after the deadline imposed by the Louisiana Statutes.
The case arose from a 2010 auto accident involving Beau Schexnaildre and Nathan Spicer. Spicer was at fault, and the two sides eventually settled Schexnaildre’s claim through Spicer’s insurance. After that resolution, Schexnaildre also sought payment from his own insurance company, State Farm Mutual Automobile Insurance Co., under the terms of his underinsured motorist coverage. Thirty-three days after Schexnaildre made his claim, his lawyer received a check from State Farm for $25,000, the limit of the man’s underinsured motorist coverage.