Health · Chapter 18 · Claims Provisions
Time Payment of Claims
Definition
Mandatory provision requiring the insurer to pay a claim immediately upon receiving proof of loss. Periodic benefits (disability income) must be paid no less frequently than monthly.
In plain English
Lump-sum claims: pay now. Disability checks: at least once a month.
Exam tip
Read carefully — "no less frequently than monthly" is a minimum frequency, not a requirement to pay exactly monthly.
Easy to confuse with
These are what this term gets tested against — if you can't tell them apart cold, drill the contrast.
Related terms