Final answer:
The NAIC provision 'Legal Actions' requires an insured to wait 60 days after filing a proof of loss before initiating legal proceedings against the insurer.
Step-by-step explanation:
The NAIC provision for "Legal Actions" is included in insurance contracts to dictate the period one must wait after submitting a proof of loss before initiating a lawsuit against the insurer. An insured must wait 60 days after filing a proof of loss with the insurance company before any formal legal action can be taken against the insurer. This waiting period allows insurers the opportunity to fully investigate a claim, and to pay out or deny the claim, prior to any legal proceedings. Not adhering to this timeframe may result in a policyholder's lawsuit being dismissed for not complying with the contractual provisions.