Arizona Life and Health Practice Exam

How long must an insured wait to bring legal action against an insurer after submitting written proof of loss?

1. 30 days

2. 60 days

3. 90 days

4. 120 days

The correct answer is: 60 days

The requirement for an insured to wait 60 days after submitting written proof of loss before bringing legal action against an insurer is established to allow the insurer adequate time to process the claim and respond appropriately. This waiting period is essential for ensuring that any disputes regarding claims can be resolved through proper channels before resorting to litigation. Choosing 60 days provides a reasonable timeline that balances the interests of both the insured and the insurer. It prevents premature legal action, which could complicate the claims process and overwhelm the judicial system with disputes that might be resolved without court intervention if given enough time. Other timeframes, like 30 days or 90 days, do not align with the standard waiting period outlined in many state laws regarding insurance claims. A 30-day period would be insufficient for the insurer to evaluate and respond to the claim, while 90 days might unnecessarily delay a policyholder's ability to seek resolution through legal means should the insurer fail to act. Therefore, the 60-day waiting period strikes a balance appropriate for facilitating claim processing while also protecting the rights of the insured.