Fair claims rules turn "handle it promptly" into calendar days. Memorize the chain 15 → 40 → 30, all calendar days.
The standard timeline:
- Within 15 calendar days after notice of claim: acknowledge it, provide the necessary forms and begin investigating (10 CCR §2695.5(e)).
- Within 40 calendar days after receiving proof of claim: accept or deny the claim (§2695.7(b)).
- Within 30 calendar days after accepting: pay the claim (§2695.7(h)).
The 30 and the 40 are the numbers candidates swap most often.
Need more time? If the insurer cannot decide within the 40 days, it must give the claimant written notice within those 40 days, and again every 30 calendar days after that, explaining why more time is needed (§2695.7(c)).
Extra standards for first party residential and commercial property claims (§2695.9):
Under a replacement cost policy, when replaced items do not match in quality, color or size, the insurer must replace all items in the damaged area so they have a reasonably uniform appearance.
On a replacement cost basis the insured does not pay for depreciation, only the applicable deductible.
The insurer may not require that repairs be made by a specific person or company.