Arkansas Life and Health Insurance Practice Exam

Which health insurance provision states that the insurance company must pay Medical Expense Claims immediately?

1. Payment of Claims

2. Time of Payment of Claims

3. Claims Forms

4. Proof of Loss

The correct answer is: Payment of Claims

The correct answer is "Payment of Claims." This health insurance provision requires insurance companies to pay Medical Expense Claims promptly once they are confirmed and approved. It ensures that policyholders receive timely financial support for their medical expenses covered under the policy. The other options are not directly related to the immediate payment of claims: - Time of Payment of Claims: This provision might specify the timeframe within which the insurance company must make payments but does not directly address immediate payments. - Claims Forms: This provision outlines the necessary documentation and forms that policyholders must submit to file a claim, but it does not dictate the timing of payment. - Proof of Loss: This provision requires policyholders to provide evidence of loss or expenses incurred, but it doesn't address the timing of claim payments.