Ohio Insurance Laws and Regulations Practice Exam

If health insurance benefits are not paid on a timely basis, the benefits paid shall bear simple interest from a date ____ months after satisfactory proof of loss was received by the insurer.

1. 1

2. 2

3. 3

4. 4

The correct answer is: 2

If health insurance benefits are not paid on a timely basis, the benefits paid shall bear simple interest from 2 months after satisfactory proof of loss was received by the insurer. This means that if an individual files a claim with their insurer and it takes longer than 2 months for the insurer to process and pay out the benefits, the insurer is required to also pay simple interest on the benefits. Option A (1) is too short of a period and does not allow for enough time for the insurer to process the claim. Option C (3) and D (4) may be too long of a period and would potentially result in the insurer paying more interest than necessary. Therefore, option B (2) is the correct choice and strikes a balance between providing adequate time for processing the claim and avoiding excessive interest payments.