When is an insurer obligated to pay a claim?

The insurer is obligated to pay a claim upon receipt of a properly filed claim. This means that once the insured submits a claim that meets the requirements outlined in the insurance policy, the insurer must begin the process of review and assessment. This obligation is generally grounded in the principle of good faith and fair dealing, which is central to insurance contracts. It signifies that insurers have a duty to honor claims that are presented according to the policy terms.

The requirement for a properly filed claim often includes necessary documentation and adherence to the timeframes set within the policy. Once this claim is received and verified, the insurer is responsible for determining the validity of the claim and processing it in accordance with state regulations and the terms of the policy.

In contrast, other options suggest conditions that are not standard obligations under most insurance contracts. Requiring completion of repairs suggests that there might be an additional hurdle the insured must meet before payment, which is not typically how claims are processed. Similarly, notarization of a policy does not establish a trigger point for claims payment, as policies are valid upon signing and delivery rather than notarization. Additionally, while agreement on the loss amount can facilitate claim resolution, it is not a prerequisite for the insurer’s obligation to pay once a claim is properly