According to the time of payment of claims provision, the insurer must make the payment immediately after receiving proof of loss, EXCEPT?

The time of payment of claims provision in insurance policies stipulates that insurers are generally required to make payment promptly after they receive proof of loss. However, there are certain exceptions to this requirement, and one of the most notable exceptions involves claims that involve periodic payments.

Periodic payment claims refer to situations where benefits are paid out over a series of installments rather than as a lump sum. This is common in varying types of insurance, including some disability and long-term care policies. In these cases, the nature of the claim necessitates a defined schedule for payments which aligns with the ongoing needs of the insured rather than a one-time payment. Thus, the insurer is not obligated to make an immediate payment as with other types of claims, which allows them to manage their cash flow while still fulfilling their contractual obligations through scheduled payments.

For the other types of claims mentioned - accidental death, life insurance, and health insurance - the expectation of immediate payment after proof of loss is typically upheld unless otherwise specified. These claims usually involve lump sum payments that are due upon the completion of the claims process. This distinction highlights why periodic payment claims are treated differently under the time of payment of claims provision.