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.
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.
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