Question

Does the insurance carrier have any duties after a policy is written but the policy period is still in effect?

Option 1: The insurance carrier has no further duties once the policy is written.
Option 2: The insurance carrier must periodically review and update the policy.
Option 3: The insurance carrier must provide timely claim processing and customer support.
Option 4: The insurance carrier is responsible for renewing the policy without further obligations.

Answer 1

The insurance carrier must provide timely claim processing and customer support.

Step-by-step explanation:

The correct answer is Option 3: The insurance carrier must provide timely claim processing and customer support.

Once a policy is written and the policy period is still in effect, the insurance carrier has an obligation to process claims in a timely manner and provide customer support to policyholders. This means that if a policyholder submits a claim during the policy period, the insurance carrier must process it promptly and provide any necessary assistance to the policyholder.

For example, if a policyholder's car is damaged and they file an insurance claim, the insurance carrier must process the claim and provide support to the policyholder throughout the claims process, such as guiding them through the necessary paperwork and answering any questions or concerns they may have.