If a claim remains unpaid for more than 25 days after receiving proof of loss, what action must the insurer take?

The correct action when a claim remains unpaid for more than 25 days after receiving proof of loss is to notify the public adjuster of the reasons for the delay in claims settlement. This requirement is outlined in various state regulations, including those applicable in Illinois.

When a claim is filed, communication and transparency are crucial for maintaining trust. If an insurer fails to settle a claim within the specified timeframe after proof of loss is submitted, it is their responsibility to inform the public adjuster, who typically represents the policyholder and advocates for their interests. This ensures that the policyholder is kept in the loop regarding the status of their claim and the reasons behind any delays. Additionally, this communication allows for the potential resolution of issues that may be causing the hold-up, ensuring that matters are addressed proactively.

The other options, while they may seem plausible, do not align with regulatory requirements for claims processing and the obligations of insurers in Illinois. Therefore, the need for communication with the public adjuster is essential to facilitate a fair and timely claims process.