If no objection is made, when does a claim become compensable?

• A. 30 days
• B. 60 days
• C. 90 days
• D. 45 days

Answer: (C)

In many jurisdictions, a claim may become compensable if no objections are raised within a specified timeframe after it has been filed. The correct answer of 90 days reflects a common industry standard, whereby, if an insurer does not dispute the claim within this period, the claim is generally considered valid and compensable.

This time frame allows the insurer adequate opportunity to review the claim for validity, investigate its circumstances, and decide on potential objections. The 90-day period provides a balance between the need for timely decision-making and the necessity of thorough investigation to ensure that all claims are legitimate before compensation is issued.

Shorter time frames, such as 30, 45, or 60 days, might not afford insurers enough time to appropriately assess and respond to claims, potentially leading to premature or unjust approvals. Thus, the 90-day window is often an established standard that reflects the need for due diligence in the review process.