Question

Delta Insurers typically affirms or denies claims within 120 days after it receives proof of loss statements. Which statement is correct?

Answer 1

Answer:

Option A is correct

Explanation:

The 2 Option are:

i. The firm Delta Insurers typically affirms claims within 120 days after it receives proof of loss statements

ii. The firm Delta Insurers typically denies claims within 120 days after it receives proof of loss statements.

Delta insurance company is a typical insurance company that operates it business in line with the Insurance practice code in its operation country. Failure of perform those duties strictly will lead to revoke of operational license which will incur consequential loss for the Insurance Company.

Delta Insurers insures against peril of Vehicle, Fire, Burglary, Consequential loss, Business Interruption and so on.

The insurer however have its own mode of settling claims as stated in the Policy form. The statement might be stated in there that "we typically affirms claims within 120 days after we receives proof of loss statements". No insurer can states in its policy form that "we typically affirms claims within 120 days after it receives proof of loss statements", this is against the code of conduct of Insurance business