What is the timeframe within which an insurer must pay a claim once it is received?

The timeframe within which an insurer must pay a claim after receiving it is commonly set at 90 days. This period is established to ensure that insurers process claims in a timely manner, allowing policyholders to receive their due benefits without unnecessary delays. The 90-day timeframe reflects a balance between giving insurers sufficient time to thoroughly review claims and ensuring that policyholders do not face prolonged waiting periods for compensation.

In practice, this helps maintain fairness and efficiency in the claims process, as it encourages insurers to act promptly while also allowing them to conduct necessary investigations or verifications when needed. This timeframe may vary slightly depending on specific state regulations or individual policy provisions, but 90 days is a widely accepted standard in the insurance industry.