What must policyholders submit to the insurer in order to be compensated for a loss?

• A. Proof of Payment
• B. Proof of Loss
• C. Claim Statement
• D. Incident Report

Answer: (B)

The correct response is that policyholders must submit proof of loss to their insurer in order to receive compensation for a loss. Proof of loss is a formal statement sent to an insurance company in which the policyholder provides details about the incident and the amount of money they are claiming. This document is crucial because it includes necessary information like the date of the loss, the nature of the loss, and any supporting documentation required to substantiate the claim.

Submitting proof of loss ensures that the insurer has a clear and comprehensive understanding of the claim being made, which facilitates the evaluation and settlement process. It serves as a legal record that the policyholder is formally notifying the insurer of their claim, and it often serves as a basis for the investigation that follows.

While proof of payment, a claim statement, and an incident report might be relevant in certain situations, they do not fulfill the specific requirement for initiating the claims process. Proof of payment may be used to support a claim after it has been submitted, but it is not the initial document required. A claim statement and an incident report could also assist in the claims process but would not replace the necessity of submitting proof of loss.