Question

Under the Unfair Trade Practices Act, claim forms must be sent to the insured within _______ from the date a claim is reported.

a) 5 days
b) 10 days
c) 15 days
d) 30 days

Answer 1

Under the Unfair Trade Practices Act, claim forms must be sent to the insured within 10 days from the date the claim is reported, to ensure timely processing and uphold consumer protection standards.

Step-by-step explanation:

The question relates to the provisions of the Unfair Trade Practices Act, specifically concerning the timeframe within which claim forms must be sent to the insured after a claim is reported. The correct answer to the question is b) 10 days. This means that after a claim is reported under the Unfair Trade Practices Act, the insurance company is required to send the claim forms to the insured within 10 days.

The intention behind this regulation is to ensure timely processing of claims and avoid unfair delays that can inconvenience or harm insured individuals. It's part of broader consumer protection laws that aim to hold insurance companies accountable and make the claims process more transparent and efficient.