Other Than Life (OTL) Practice Exam

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Study comprehensively for the Other Than Life Test with detailed multiple-choice questions and explanatory flashcards. Prepare for success!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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Under an auto policy, when must the insurer begin to pay the settlement after receiving proof of loss?

Must pay the loss within a year
Must negotiate settlement
Must pay the loss within ninety days
Must begin to pay the settlement within 60 days

The correct answer is: Must begin to pay the settlement within 60 days

The insurer is required to begin paying the settlement within 60 days after receiving proof of loss. This timeframe is important because it provides a clear expectation for insured individuals regarding when they can expect compensation for their losses following an incident covered by their auto policy. The 60-day period is in place to ensure prompt action by the insurance company, which helps to alleviate the financial burden on the insured during a challenging time. Timely compensation is crucial in maintaining trust in the insurance process and ensuring that policyholders can recover from losses efficiently. While other options suggest different timeframes or processes, the 60-day requirement is the specific standard intended to ensure timely settlement of claims.