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LLQP (Life Licence Qualification Program) Practice Exam · Question

An individual disability income policy in Ontario typically contains statutory conditions. Under which statutory condition must the insurer pay the claim within a specified timeframe after receiving proof of loss?

The 'Payment of Claims' (or 'Time of Payment of Claims') statutory condition specifies that the insurer must pay indemnities (benefits) immediately upon receipt

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Question: An individual disability income policy in Ontario typically contains statutory conditions. Under which statutory condition must the insurer pay the claim within a specified timeframe after receiving proof of loss?

Answer options:

  • Proof of Loss
  • Notice and Proof of Claim ✅ Payment of Claims
  • Termination

Correct answer: Payment of Claims

Explanation: The 'Payment of Claims' (or 'Time of Payment of Claims') statutory condition specifies that the insurer must pay indemnities (benefits) immediately upon receipt of due proof of claim, or within a set number of days depending on the type of benefit.

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