Question

In the claims payment provisions in a health policy, the standard time for a company to deliver a claim form once it has been notified of a loss is:

a) 5 days
b) 15 days
c) 30 days
d) 45 days

Answer 1

The standard time for an insurance company to deliver a claim form once notified of a loss is 15 days, which is part of the efficient operation and the fundamental law of insurance.

Step-by-step explanation:

In the context of the claims payment provisions in a health policy, the standard time for an insurance company to provide a claim form to the insured after being notified of a loss is 15 days. This timeframe is crucial as it allows the claim process to begin in a timely manner, which contributes to the efficient operation of the insurance company. Moreover, it is important to note that in the broader perspective of insurance, the fundamental law of insurance dictates that the collected premiums from policyholders must be adequate to cover the costs of the insured's claims, the administrative costs of running the insurance company, and also allow for the company's profits. These components ensure the financial stability and viability of the insurance firm.