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

In Wisconsin, property insurance regulations specify that if an insurance claim is not paid within 30 days, the insurance company is required to pay interest on the amount of the claim at a rate of 12% per annum. This requirement ensures that policyholders receive a fair compensation for the time they have to wait for their claims to be processed and paid out. Interest serves as an incentive for insurance companies to resolve claims promptly and fairly, reflecting the principle that policyholders should not suffer financial loss due to delays in claim payments.

The other answers do not align with the state regulations regarding the payment of claims. A rate of 15% is not specified in the legal framework, and options referring to a specific monetary fine or a multiplication of the claim amount do not correlate with the statutory requirements laid out for delays in claim payments. Therefore, the correct information about the interest rate applicable after 30 days highlights the balance between protecting the rights of policyholders and maintaining accountability for insurance companies.