How soon must an insurer pay a claim once it is received?

Insurers are typically required to act on claims in a timely manner to ensure that policyholders receive the benefits they are entitled to. In Michigan, the law stipulates that an insurer must pay a claim within 90 days of receiving the claim, provided that the claim is deemed valid and complete. This timeframe is designed to protect consumers by ensuring that they do not experience undue delays in receiving payment for their insurance claims. The requirement to settle claims within 90 days establishes a clear standard for both insurers and policyholders, facilitating transparency and promoting trust in the insurance process.

Understanding this timeline is crucial for anyone working in the insurance industry so that they can provide accurate information and serve the needs of clients effectively.