If a claim is not paid within 30 days, how much interest must the insurance company pay?

In Wisconsin, if an insurance company fails to pay a claim within 30 days, it is required to pay interest on the amount due at a statutory rate. This rate is set at 12%. The rationale behind this is to incentivize prompt payment of claims and to compensate the claimant for any delays in receiving their rightful benefits. Interest is calculated from the date the claim is presented until the payment is made, thereby protecting the policyholders and ensuring they are not financially penalized for the delays of insurers.

The other options do not reflect the actual regulations pertaining to insurance claim payments in Wisconsin. The specific interest rate is designed to provide a clear standard rather than imposing punitive daily fines or arbitrary amounts. Understanding this can help policyholders assert their rights if a claim payment is delayed.