AD Banker Comprehensive Practice Exam

An insurance company must not delay a death claim settlement beyond what period after receiving proof of death?

1. 1 month

2. 3 months

3. 2 months

4. 6 months

The correct answer is: 2 months

The correct answer is based on regulations that govern how insurance companies handle death claims. Specifically, most jurisdictions require that insurance companies settle a death claim within a specified timeframe after they have received proof of death, which is typically set at 2 months. This rule is in place to ensure that beneficiaries receive their due claims in a timely manner following the loss of a loved one, promoting fairness and efficiency in the claims process. By adhering to this 2-month standard, insurers are encouraged to conduct their investigations and processes promptly, minimizing undue hardship for beneficiaries who are already facing emotional and financial difficulties.