What must an insurer do when accepting a claim?

When an insurer accepts a claim, the key obligation is to pay promptly. This duty arises from the contractual relationship between the insurer and the policyholder, where the insurer has agreed to provide financial protection in exchange for premiums. Once a claim is accepted, the insurer is responsible for fulfilling their end of the contract by ensuring that payments are made in a timely manner to cover the covered losses or damages.

Prompt payment helps the policyholder manage their financial situation during a difficult time. It reflects the insurer's commitment to customer service and compliance with good faith practices, which are central to the insurance industry. Additionally, many states, including Missouri, have regulations that require insurers to process claims in a timely fashion.

The other options, while they may encompass actions that could be relevant in different contexts, do not represent the primary responsibility of the insurer once a claim is accepted. For instance, beginning a new investigation may occur if there are disputes about the claim, and notifying the policyholder of coverage limits is generally part of the initial stages of the insurance process rather than the claims payment process. Filing an appeal would be applicable in situations where a claim is denied or disputed, not when a claim is accepted.