What must an insurer do within 90 days of receiving all pertinent information about a claim?

An insurer is required to approve or deny a claim within 90 days of receiving all pertinent information. This timeframe is crucial as it ensures timely processing of claims, which protects the rights of the policyholder and fosters trust in the insurance process. By establishing a clear deadline, the regulations ensure that policyholders are not left in limbo, waiting indefinitely for a decision regarding their claims.

When an insurer receives a claim, it gathers all necessary information to assess the validity and extent of the claim. Once they have all the pertinent details, they must act decisively within the stipulated time. This requirement also helps insurers manage their operations effectively, as extending the review period indefinitely could lead to inefficiencies and dissatisfaction among clients.

This obligation underscores the importance of prompt communication and decision-making within the insurance industry, balancing the need for thoroughness with the practical aspect of timely responses to claimants.