74. The provision which requires an insurer to pay benefits immediately upon receipt of an acceptable written proof of loss submitted by an insured is
Answer: C
Timely payment of claim
This provision mandates that an insurer must pay benefits without delay once an acceptable written proof of loss is received from the insured. It ensures that policyholders receive their entitled benefits promptly after filing a claim.
A) Notice of claim.
The notice of claim refers to the insured's obligation to inform the insurer about a loss or claim. While it is an important process in the claims procedure, it does not specifically pertain to the timing of payment once a proof of loss has been submitted.
B) Grace period.
A grace period is a designated time after the due date during which a policyholder can make premium payments without losing coverage. This term does not relate to the payment of claims or the requirement to pay benefits upon receiving proof of loss.
C) Timely payment of claim.
This option accurately describes the provision in question, which emphasizes the insurer's obligation to pay benefits immediately upon receiving an acceptable proof of loss. This ensures that insured individuals are financially supported without unnecessary delays following their claims.
D) Reinstatement of claim.
Reinstatement of claim refers to the process of restoring a claim that may have lapsed or been denied. This option does not address the immediate payment of benefits upon receipt of proof of loss, making it irrelevant to the question at hand.
Conclusion
The concept of timely payment of claim is crucial as it protects the interests of the insured by ensuring they receive their benefits swiftly after filing a valid claim. All other options either relate to different aspects of the insurance process or do not address the prompt payment requirement, thereby confirming that "timely payment of claim" is the definitive correct answer.