Payment of claims. There shall be a provision that when the benefits under the policy become payable by reason of the death of the insured, settlement shall be made upon receipt of due proof of death and, at the insurer’s option, surrender of the policy and proof of the interest of the claimant or surrender of proof. If an insurer specifies a particular period prior to the expiration of which settlement shall be made, such period shall not exceed 2 months from the receipt of such proofs.
Last modified: February 27, 2006