Purpose
A status update letter keeps the insured or claimant informed about the progress of a claim investigation. Regular status updates are both a regulatory expectation and a practical tool for reducing complaints, bad-faith exposure, and unnecessary calls to the claims department.
When to Send
Status letters should be sent at regular intervals during an open investigation. Many jurisdictions require updates every 30 to 45 days if the claim remains open. Even where not mandated, proactive communication is a best practice.
California Timing and Smoke Claims
Under 10 CCR §2695.7(b)–(c), the general decision period runs from receipt of proof of claim. If additional time is needed, give the first written explanation within the applicable decision period, then every 30 calendar days until determination or service of notice of legal action. Specify additional information needed and continuing reasons for delay; if awaiting a future event, explain it and estimate when a decision can be made. Check the exceptions in the California deadline guidance.
For smoke claims, use the maintained California smoke-damage guidance to identify applicable inspection, testing, restoration, and clearance steps. A status notice does not itself extend a separate statutory inspection or payment deadline.
Required Components
Current Status
State clearly where the claim stands. Is the investigation ongoing? Are specific items pending? Is a coverage determination expected soon?
What Has Been Done
Summarize the investigation steps completed since the last communication — inspections, document reviews, expert consultations, recorded statements.
What Is Still Needed
If the carrier is waiting for information from the insured or a third party, state specifically what is needed and who is expected to provide it.
Expected Timeline
Provide a realistic estimate of when the next communication or decision can be expected. If delays are unavoidable, explain why.
Contact Information
Confirm the assigned adjuster's name, phone number, and email address.
Jurisdiction Notes
California — 2028
SB 876’s new primary-contact and adjuster-change reporting rules operate in 2028; the §2071 form amendments apply to policies originated or renewed on or after January 1, 2028. See the triggers and required report contents. Retain the existing emergency-claim third-adjuster rule until the new rule operates.
Louisiana
A contractor-verification payment delay requires documented verification efforts and a written notice within five business days after the failed attempt to qualify for Act 932’s limited protection. See the contractor-verification notice.
Adjuster Guidance
- Do not send generic "your claim is being reviewed" letters — add substance
- If the investigation is delayed, explain the reason honestly
- Track status-letter deadlines to ensure regulatory compliance
- Use status letters proactively to prevent DOI complaints
- Keep a copy of every status letter in the claim file with the date sent
