Question

William owned a life insurance policy with his wife as the life insured and his daughter Selma, as the beneficiary. William's wife died and Selma submitted the death claim and all of the necessary documents to the insurer to process the claim. Which statement best describes how the insurance company is required to handle the death benefit claim?

a) The insurer is obligated pay the benefit within 30 days of receiving satisfactory evidence.
b) The insurer is obligated to pay the benefit within 60 days of receiving satisfactory evidence.
c) The insurer is obligated to pay the benefit within 45 days of receiving satisfactory evidence.
d) The insurer is obligated to pay the benefit within 90 days of receiving satisfactory evidence.

Answer 1

The insurance company is obligated to pay the death benefit within 30 days of receiving satisfactory evidence.

Step-by-step explanation:

In the given scenario, William owned a life insurance policy with his wife as the life insured and his daughter Selma as the beneficiary. When William's wife passed away, Selma submitted the death claim and all the necessary documents to the insurer for processing. The correct statement that describes how the insurance company is required to handle the death benefit claim is option a) The insurer is obligated to pay the benefit within 30 days of receiving satisfactory evidence. The insurer has a legal obligation to process and pay the death benefit promptly once they have received the necessary documentation.