Question

What must happen in order for an insurance company to make a payout? Check all that apply.


The insurance company must verify the claim.
The insured party must file a claim.
The insured party must purchase property.
The insurance policy must be in place.
The insured party must experience a covered loss.

Answer 1

Select:
- The insurance company must verify the claim. — Yes.
- The insured party must file a claim. — Yes (or otherwise notify the insurer per policy terms).
- The insured party must purchase property. — No.
- The insurance policy must be in place. — Yes (and typically in force at the time of loss).
- The insured party must experience a covered loss. — Yes.

Briefly: the insurer will pay only for losses that are covered by an active policy after the insured properly notifies the insurer and the claim is verified.