Minnesota Real Estate Exam Practice Question
After an insurance company reaches agreement with an insured on the amount of an auto claim, it must issue payment within a MAXIMUM of how many business days?
Correct Answer: B
Rationale: Insurance companies are required to issue payment for auto claims within a maximum of 5 business days after reaching an agreement with the insured. This timeframe ensures timely compensation for policyholders, promoting trust and satisfaction in the claims process.
Option A (3 days) is too short, as it does not allow adequate time for processing and issuing payment. Option C (15 days) exceeds the regulatory limit, potentially delaying necessary funds for the insured. Option D (30 days) is also incorrect, as it significantly extends the timeline beyond what is mandated, undermining the efficiency expected in the insurance industry.
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