What is the maximum time duration within which an insurance company must pay claims?

The maximum time duration within which an insurance company must pay claims is established to ensure timely processing and payment to policyholders. In many jurisdictions, including Washington, the law stipulates that insurers are required to pay claims within 60 days of receiving proof of loss. This timeframe is designed to provide adequate time for the insurer to investigate the claim and make a determination, while also ensuring that policyholders receive their benefits in a reasonable period.

This regulation helps maintain a standard for insurance practices and protects consumers from unnecessary delays in receiving the funds they are entitled to under their insurance policies. Hence, the correct answer reflects this legal requirement, ensuring that policyholders are treated equitably and that their claims are handled efficiently within the specified duration.