What action must insurers take after proof of loss statements are completed?

After proof of loss statements are completed, insurers are required to affirm or deny coverage of claims. This step is crucial in the claims process because it establishes whether the insurer recognizes the validity of the claim based on the information provided in the proof of loss documentation. By asserting coverage, the insurer commits to processing the claim and potentially providing financial compensation to the policyholder, while denying coverage means the insurer will not pay for the claim, often accompanied by an explanation of the reasons for that decision.

This requirement for insurers reflects their obligation to respond to claims in a timely manner, ensuring that policyholders receive clear communication regarding their coverage. It is a fundamental aspect of maintaining trust and transparency within the insurance relationship.