California Insurance Code & EthicsQuestion 32 of 215
Under the Fair Claims Settlement Practices Regulations, after an insurer receives proof of claim, within how many calendar days must it accept or deny the claim in whole or in part?
a.15 calendar days
b.30 calendar days
c.40 calendar days
d.60 calendar days
Explanation
10 CCR §2695.7(b) requires the insurer to accept or deny a claim, in whole or in part, no later than 40 calendar days after receiving proof of claim. The 15-day figure relates to acknowledging receipt of the claim, and 30 days is the deadline to issue payment after an agreement is reached. Sixty days is not a benchmark in the regulation.
Law Reference: 10 CCR §2695.5(e)Practice all 215 questions free — no signup required.
Related questions on this topic
- A property and casualty broker tells a prospect that a competing insurer is on the verge of insolvency, knowing the statement is false. Under the Unfair Insurance Practices Act, this conduct is best described as:
- An insured calls her insurer to report a covered fire loss. By what deadline must the insurer acknowledge receipt of the claim communication?
- Once an insurer and insured agree on the amount of a covered loss, the insurer must tender payment within how many calendar days?
- A licensed P&C broker-agent renewing a license must complete how many hours of continuing education during each two-year license period?
- Which statement best describes the distinction between an insurance agent and a broker under California law?
- A P&C broker collects $5,000 in premiums from a client to bind a homeowners policy with an admitted insurer. Under the fiduciary duty statute, the broker must:
Last reviewed: · editorial process
PrepPass Editorial Team · Verified against California Property & Casualty Insurance License Exam · How we review