What must an insurer do after receiving a claim?

After receiving a claim, an insurer is required to affirm or deny the claim within a specified time frame, typically within 30 days. This requirement is essential because it ensures that policyholders receive timely communication regarding the status of their claims. Responding promptly allows the insured party to understand if their claim has been accepted or if further actions are necessary, such as providing additional information or documentation to support their claim.

The requirement for a quick response promotes accountability and consumer protection, giving policyholders assurance that their claims are being taken seriously. This guideline is often established by state regulations to encourage fair practices in the insurance industry.

While responding within 60 days may seem reasonable, the specific obligation to affirm or deny within 30 days is more established and mandates immediate action regarding the claim's status. Conducting a full investigation is important but must be done concurrently with the response process rather than delaying the response itself, as timely communication is vital for the insured. Additionally, delaying the response for more evidence could lead to frustration for policyholders and is not compliant with the regulations that aim to safeguard consumer interests.