Arizona Life and Health Practice Exam

When must an insured provide written proof of loss to take legal action against an insurer?

1. Before the policy is issued

2. After filing a claim

3. Upon cancellation of the policy

4. After the end of the grace period

The correct answer is: After filing a claim

The requirement for an insured to provide written proof of loss is essential for initiating any legal action against an insurer. This proof serves as documentation that a claim has been made, outlining the circumstances of the loss, and confirming the insurer's obligation to respond to the claim. Once a claim is filed, the insurer needs this proof to adequately investigate and assess the validity of the claim before any potential legal action can be taken. This process not only helps the insurer fulfill their duties under the policy but also protects the rights of the insured by ensuring that all relevant information is provided and recognized. In contrast, providing proof of loss before the policy is issued would not be applicable, as there would be no claim to document at that stage. Cancellation of the policy does not trigger a need for proof of loss that would lead to legal action; rather, it signifies the end of coverage. Lastly, waiting until after the end of the grace period does not align with the typical procedure for claims handling since legal action can only be initiated after a claim has been formally submitted, along with the required proof of loss.