Clark v. State Farm Mutual Automobile Insurance

STRINE, Chief Justice:

I. INTRODUCTION

Section 2118B(c) of Title 21 is the focus of this putative class action. The statute provides that an insurer “shall” process and either pay or deny a claim for motor vehicle insurance benefits within thirty days of the insurer’s receipt of such a request. 1 It also provides that “[i]f an insurer fails to comply with the [thirty-day requirement],” then the insurer must also pay the claimant interest at a rate that ranges from 1.5% to 2.5% per month depending on the length of the delay. 2

The plaintiffs both have policies with State Farm Mutual Automobile…