Section 304.17A-730 - Payment of interest for failing to pay, denying, or settling a clean claim as required(1) An insurer that fails to pay, deny, or settle a clean claim in accordance with KRS 304.17A-700 to 304.17A-730 and KRS 205.593, 304.14-135, and 304.99-123 shall pay interest according to the following schedule on the amount of the claim that remains unpaid:(a) For claims that are paid between one (1) and thirty (30) days from the date that payment was due under KRS 304.17A-702, interest at a rate of twelve percent (12%) per annum shall accrue from the date payment was due under KRS 304.17A-702;(b) For claims that are paid between thirty-one (31) and sixty (60) days from the date that payment was due under KRS 304.17A-702, interest at a rate of eighteen percent (18%) per annum shall accrue from the date payment was due under KRS 304.17A-702; and(c) For claims that are paid more than sixty (60) days from the date payment was due under KRS 304.17A-702, interest at a rate of twenty-one percent (21%) per annum shall accrue from the date that payment was due under KRS 304.17A-702.(2) When paying a claim after the time required by KRS 304.17A-702, the insurer shall add the interest payable to the amount of the unpaid claim without the necessity for any claim for that interest to be made by the provider filing the original claim. The interest obligation otherwise imposed by this section shall not apply if the failure to pay, deny, or settle a claim is due to, or results from, in whole or in part, acts or events beyond the control of the insurer, including but not limited to acts of God, natural disasters, epidemics, strikes or other labor disruptions, war, civil disturbance, riot, or complete or partial disruptions of facilities.Effective:7/15/2002
Amended 2002, Ky. Acts ch. 181, sec. 17, effective7/15/2002. -- Created 2000, Ky. Acts ch. 436, sec. 16, effective 7/14/2000.