After satisfactory proof of loss is submitted, when must ABC insurance company begin paying interest on the death proceeds?

In North Carolina, after an insurance company has received satisfactory proof of loss, the company is required to begin paying interest on death proceeds starting 30 days after the proof of loss is submitted. This regulation ensures that beneficiaries of a life insurance policy are compensated fairly and timely once they have fulfilled their responsibility in providing necessary documentation regarding the claim.

The law facilitates the prompt payment of interest as an acknowledgment of the time value of money while the company processes the claim. Thus, if the insurance company fails to make payment within the 30-day window after the confirmation of satisfactory proof, they become liable for interest on the benefit amount, ensuring that beneficiaries do not suffer financially due to delays in processing. This provision serves to protect the interests of policyholders and their beneficiaries, reinforcing the obligation of insurance providers to act in a timely manner following a loss.