There is no strict time limit on how long an insurance company can take to settle a claim in Kentucky. 

Kentucky law requires an insurance company to investigate a claim with reasonable promptness and diligence and to pay the claim when liability or coverage is reasonably clear. Obviously what is reasonable in this context can depend on the nature of the claim and the circumstances giving rise to it.  

On the other hand, a failure to do either can constitute a bad faith insurance practice and a violation of the Kentucky Unfair Claims Settlement Practices Act.