South Carolina Personal Lines Practice Exam

How soon must an insurer pay a claim once the proof of loss is received under a dwelling policy?

1. 30 days

2. 45 days

3. 60 days

4. 90 days

The correct answer is: 60 days

Under a dwelling policy, once the insurer receives the proof of loss, they are required to pay the claim within 60 days. This timeframe is established to ensure that claims are settled promptly, which is crucial for the financial well-being and peace of mind of policyholders following a loss. This 60-day requirement aims to balance the need for thorough claim processing with the necessity of providing timely relief to policyholders. By stipulating this timeframe, the policy promotes efficiency within the insurance process, allowing homeowners to recover from losses without excessive delays. Understanding this timeframe is important for both policyholders and insurance professionals, as it outlines the insurer's obligations and helps set expectations about the claims process after a covered loss occurs. On the other hand, the other timeframes given in the choices do not align with the standards set in dwelling policies, as they would either delay claims unnecessarily or not reflect the intent for timely resolution.