Final answer:
The insured must wait 60 days before bringing legal action against the insurer, following the 'proof of loss' clause in insurance policies. This waiting period allows the insurer to properly investigate and adjust the claim. The premiums paid by policyholders ultimately cover claims, operational costs, and allow for insurance company profits.
Step-by-step explanation:
When an accident and health insurer receives written proof of loss from an insured, the insured must typically wait a specified period before engaging in certain actions. In the context of the question, the insured must wait 60 days before bringing legal action against the insurer. This waiting period, known as the 'proof of loss' clause, is a common provision in insurance policies ensuring that the insurer has adequate time to investigate and adjust the claim.
Insurance policies are designed to provide financial protection for various events, such as when medical expenses are incurred, the policyholder dies, a car is damaged, stolen, or causes damage to others, or a dwelling is burglarized. However, the process after a claim is filed includes a period where the insurer assesses the claim to prevent fraud and ensure proper payout. It's also important to note that policyholders contribute to the system through premiums, covering their claims, the costs of operating the company, and allowing for the firm's profits.