Ohio Health Insurance Practice Exam

The correct answer indicates that an insured must give notice of a loss within 20 days under the Notice of Claim provision. This time frame is established to ensure that the insurance company can promptly investigate the claim, gather necessary information, and manage the claims process efficiently. Timely notification is crucial as it allows insurers to take appropriate action, assess liability, and determine coverage without undue delay.

In the context of insurance practices, this time limit also serves as a mechanism to protect both parties. For the insurer, it helps prevent losses due to delayed reporting, which can complicate the claims process and affect the quality of investigations. For the insured, understanding this provision ensures they maintain eligibility for claims coverage by reporting incidents on time.

While there are other timelines around claims procedures, the specific 20-day requirement for notifying about a loss aligns with standard practices in many insurance policies, ensuring clarity and efficiency in the claims process.