If an insurer denies a claim, how many days must they provide a reasonable explanation for the denial?

An insurer is required to provide a reasonable explanation for a claim denial within 30 days. This timeframe is designed to ensure transparency and fairness in the claims process, allowing policyholders to understand the basis of the denial and to take any further action that may be necessary, such as appealing the decision. The 30-day requirement helps maintain trust between insurers and their clients by ensuring that claims are handled promptly and that communication is clear and accessible.

Understanding the legal obligations of insurers in this context is crucial for policyholders as it empowers them to expect timely responses and justifications regarding their claims. This period is in line with regulatory standards aimed at protecting consumers and ensuring that they are treated equitably in their dealings with insurance companies.