79. 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 requires an insurer to pay benefits immediately upon receipt of an acceptable written proof of loss.
This provision ensures that once an insured submits a valid proof of loss, the insurer is obligated to make prompt payment of benefits without unnecessary delays.
A) Notice of claim.
The notice of claim refers to the requirement for the insured to inform the insurer about a loss event. While it is an important step in the claims process, it does not mandate immediate payment upon submission of proof of loss, making it incorrect in this context.
B) Grace period.
A grace period allows the insured additional time to pay premiums without losing coverage, but it does not relate to the payment of claims or the timing of benefit disbursement after a proof of loss is submitted. Therefore, this option is not relevant to the question.
C) Timely payment of claim.
This option correctly identifies the provision that requires insurers to pay benefits promptly once they receive an acceptable written proof of loss. It emphasizes the insurer's obligation to act quickly in order to support the insured after a loss has occurred.
D) Reinstatement claim.
A reinstatement claim pertains to the process of restoring coverage after it has lapsed due to non-payment of premiums. This term does not address the immediate payment of benefits related to proof of loss, making it an incorrect option in this scenario.
Conclusion
The correct answer, "timely payment of claim," is definitively right as it directly addresses the insurer's obligation to provide benefits promptly upon receiving proof of loss. All other options fail to encapsulate this critical aspect of claims processing, either discussing unrelated topics or misinterpreting the insurer's responsibilities.