When must an insurer pay interest on death benefits following the death of the insured?

An insurer is required to pay interest on death benefits following the death of the insured within a specific timeframe to ensure the beneficiaries are compensated fairly and promptly. The law stipulates that if the insurer does not promptly pay the death benefit, interest begins to accrue from the date of the insured's death until the date the benefits are paid. The correct timeframe for this obligation is 20 days. This ensures that beneficiaries do not suffer financial loss due to delays in the payout, as interest provides compensation for the waiting period before the payment is received.

This regulation underscores the importance of prompt claim processing by insurers while protecting the rights of policy beneficiaries, ensuring they are treated fairly in their time of loss.