State RegulationsFL specificDifficulty 1/5
Under Florida's unfair claim settlement standards, what must an insurer do within 30 days after receiving a completed proof of loss?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under Fla. Stat. 626.9541(1)(i)3.e, within 30 days after receiving a completed proof of loss, an insurer must confirm or deny coverage and, if coverage exists, the amount payable. This forces the insurer to give the claimant a definite answer — acceptance or denial with an amount — rather than leaving the claim in limbo. Failing to do so is an unfair claim settlement practice enforceable by the Department of Financial Services.
Why the other options are wrong
- A) The insurer must confirm or deny coverage and the amount; it may still investigate, but it owes a definite answer, not automatic payment.
- C) Claims are not adjudicated by the Department of Financial Services in the first instance; the insurer must answer the proof of loss itself.
- D) The 30-day duty runs to the claimant regarding coverage and amount; it has nothing to do with suspending agent commissions.
Memory hook
Thirty days: say yes or no — with the amount.