When does the insurer pay claims under Time Payment of Claims by the insurer?

• A. After 60 days
• B. Immediately upon receipt of proof of loss
• C. After investigation
• D. At end of policy year

Answer: (B)

Time payment of claims means the insurer must settle promptly once the insured provides proof of loss. The key idea is that once the necessary documentation showing that a loss occurred and the amount due is submitted, payment is due without unnecessary delay. This protects the insured from waiting months or being forced into lengthy investigations before receiving benefits. So, the correct approach is that payment happens immediately after the insurer receives proof of loss.

Delaying until an investigation is completed, waiting 60 days, or paying only at the end of the policy year would undermine the purpose of timely settlement. Proof of loss is the claim documentation the insured provides, and once that is received, the insurer is expected to remit payment promptly, subject to any policy terms and proper validation.