What is the first step an insurer must take after receiving a claim?

The first step an insurer must take after receiving a claim is to acknowledge receipt of the claim. This is essential as it establishes communication with the policyholder and sets the expectation for the claims process. Acknowledgment serves to reassure the policyholder that their claim is being processed and provides an opportunity to communicate timelines and next steps.

This step is particularly important in maintaining trust and transparency between the insurer and the policyholder. By acknowledging the receipt of the claim, the insurer also initiates the claims handling process, which includes subsequent steps like investigating the claim, contacting the policyholder for additional information, and assessing damages.

While other options involve critical actions in the claims process, they occur after the acknowledgment of the claim. For instance, investigating the pertinent facts and assessing damages are vital components of the claims process, but they cannot effectively begin without first confirming to the policyholder that their claim has been received and is being taken seriously.