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Bill

HD 1282

An Act to provide prompt payment following settlement by insurance company

194th Legislature (2025-2026) Introduced by Jeff Roy

Massachusetts bill requiring insurers to pay claim settlements within a specified timeframe to prevent compensation delays for claimants.

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WeVote Research Nonpartisan
Bill Summary · HD 1282

Legislative bill overview

HD 1282 requires insurance companies to issue payment to claimants within a specified timeframe following settlement of a claim. The bill aims to prevent delays in compensating individuals after their insurance disputes are resolved. This applies to all types of insurance settlements covered under Massachusetts insurance law.

Why is this important

Delayed insurance payouts can create financial hardship for claimants who have already experienced losses (medical expenses, property damage, etc.) and negotiated settlements in good faith. Establishing a legal deadline ensures companies cannot use payment delays as a cost-management strategy and provides certainty for claimants about when funds will arrive.

Potential points of contention

  • Timeline feasibility: The bill's specific payment deadline may be difficult for insurers to meet in complex cases requiring document verification, fraud investigation, or coordination with multiple parties
  • Administrative burden: Strict timelines could increase operational costs for insurance companies, potentially raising premiums for consumers
  • Definition of "settlement": Ambiguity about what constitutes a final settlement versus preliminary agreements could create disputes about when the payment clock starts

Compiled from official sources — confirm details with the bill’s official record.

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