State RegulationsVA specificDifficulty 3/5
An insurer receives written proof of loss on an individual accident and sickness claim and pays the benefit several weeks later. Under Va. Code § 38.2-3407.1, when did interest on the claim proceeds begin to accrue?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Va. Code § 38.2-3407.1 requires accident and sickness claim proceeds to bear interest at the legal rate beginning with the 15th working day after the insurer receives proof of loss. The clock is not tied to the loss date or the policy date — it runs from when the insurer has the documentation it needs to evaluate the claim. An insurer that pays weeks late owes the statutory interest on top of the benefit, giving insurers a financial reason to move quickly and giving claimants a defined remedy enforceable through the Virginia Bureau of Insurance.
Why the other options are wrong
- A) The policy's issue date has nothing to do with claim interest; the statutory trigger is receipt of proof of loss.
- C) There is no 45th-day loss-date trigger for claim interest; the count starts at the 15th working day after proof of loss is received.
- D) Virginia expressly mandates interest on delayed A&H claim payments, so a never-accrues statement is wrong.
Memory hook
Proof received, then 15 working days — after that the insurer pays interest.