California Property & Casualty Broker-AgentCalifornia LawMedium
A California insured submits a claim for property damage. The insurer acknowledges receipt of the claim. According to the California Fair Claims Settlement Practices Regulations, within how many calendar days must the insurer accept or deny the claim, in whole or in part, after proof of claim is completed?
- A40 calendar days
- B15 calendar days
- C30 calendar days
- D20 calendar days
Show answer & explanationAnswer & explanation
Correct answer: A. 40 calendar days
The California Fair Claims Settlement Practices Regulations require an insurer to accept or deny a claim, in whole or in part, within 40 calendar days after proof of claim is completed.
Why the other options are wrong
- B. 15 days is the timeframe for acknowledging receipt of claims and responding to communications, not for final acceptance/denial.
- C. 30 days is a common timeframe for some insurer actions, but not for the final accept/deny decision after proof of claim.
- D. 20 days is not a standard timeframe for claim acceptance/denial under these regulations.
Claim Acceptance/Denial Timeline
Under California's Fair Claims Settlement Practices Regulations, an insurer must accept or deny a claim, in whole or in part, within 40 calendar days after all necessary proof of claim information has been received and completed.
- 40 calendar days
- After proof of claim complete
- Fair Claims Settlement Practices
Memory trick: 40 days to 'DECIDE' (Deny, Evaluate, Compensate, Investigate, Deliver, Explain).