You can find the timeout settings in the Global Settings tab, under Input.
Since there's no way of knowing if the current target is dead, the bot will continue to attack untill it fails to deal damage within the set interval. Once it fails it will consider the current target dead, attempt to loot and continue.
Action timeout == the damage timeout mentioned above
Loot delay == how long to wait after hitting the loot key, this is to compensate for the possible distance your avatar has to run before it actually loots the mob.