Indiana Code 27-8-5.7-6. Payment or denial of claims; interest
(1) If the claim is filed electronically, within thirty (30) days after the date the claim is received by the insurer.
Terms Used In Indiana Code 27-8-5.7-6
- accident and sickness insurance policy: has the meaning set forth in IC 27-8-5-1. See Indiana Code 27-8-5.7-1
- clean claim: means a claim submitted by a provider for payment under an accident and sickness insurance policy issued in Indiana that has no defect, impropriety, or particular circumstance requiring special treatment preventing payment. See Indiana Code 27-8-5.7-2
- insurer: means an insurance company issued a certificate of authority in Indiana to issue accident and sickness insurance policies. See Indiana Code 27-8-5.7-3
- Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
- provider: has the meaning set forth in IC 27-8-11-1. See Indiana Code 27-8-5.7-4
(b) If:
(1) an insurer fails to pay or deny a clean claim in the time required under subsection (a); and
(2) the insurer subsequently pays the claim;
the insurer shall pay the provider that submitted the claim interest on the accident and sickness insurance policy allowable amount of the claim paid under this section.
(c) Interest paid under subsection (b):
(1) accrues beginning:
(A) thirty-one (31) days after the date the claim is filed under subsection (a)(1); or
(B) forty-six (46) days after the date the claim is filed under subsection (a)(2); and
(2) stops accruing on the date the claim is paid.
(d) In paying interest under subsection (b), an insurer shall use the same interest rate as provided in IC 12-15-21-3(7)(A).
As added by P.L.162-2001, SEC.5.