Under provincial and territorial insurance laws, within what timeframe is an insurer obligated to pay a claim upon receiving satisfactory evidence?

• A. 30 days
• B. 15 days
• C. 60 days
• D. 90 days

Answer: (A)

When a claim is supported by satisfactory evidence, insurers are required to pay within a short, standard timeframe. In provincial and territorial law, that window is typically 30 days after the insurer receives the required proof of loss or other documentation. This ensures the claimant isn’t left waiting too long for funds needed to replace or repair what was lost.

Satisfactory evidence means the insurer has all the necessary documents to verify the claim—completed forms, proofs of loss, medical or police reports as applicable, and any other information the policy requires. Once those documents are received and accepted, the obligation to pay kicks in within 30 days.

If payment slips beyond the 30-day mark, some jurisdictions allow interest to accrue on the overdue amount, reflecting the delayed settlement. The other timeframes listed are not the standard requirement: 15 days is generally too short for processing, while 60 or 90 days are longer than the typical statutory obligation and may occur only in exceptional circumstances or disputes.