Maryland Life and Health Insurance License Practice Exam

The time limit for filing claim disputes is addressed in which provision of an accident and health policy?

1. Legal actions

2. Payment of claims

3. Renewal requirements

4. Evidence of insurability

The correct answer is: Legal actions

The correct option addresses the timeframe within which an insured must initiate legal action after a claim has been denied or disputed. The "Legal actions" provision specifies the limitations on filing such claims, ensuring that policyholders understand they need to act within a specified timeframe. This provision is crucial because it protects insurance companies from indefinite liability and encourages prompt resolution of claims disputes. The time limit typically varies by state, and this provision ensures that the insured is aware of these restrictions. It reinforces the idea that delay can affect rights under the policy, emphasizing the importance of timely action when disputes arise. Other provisions, like "Payment of claims" or "Renewal requirements," do not specifically cover the timeframe for legal actions or disputes over claims, and "Evidence of insurability" relates to proof required for coverage eligibility, not claim disputes.