Section 11.109. Payment for loss.

(1) Upon assignment of a claim from the assigned claims facility, the servicing insurer shall investigate the claim  expeditiously and make prompt payment for loss within the time prescribed by the act.

(2)   Interest due for late payment of a claim shall be  paid  by  the servicing insurer to which the claim  is  assigned.  A  servicing   insurer shall not be reimbursed for the amount of interest paid.

(3)     A servicing insurer may require an additional medical examination of a claimant. Failure of a claimant to comply with the request may be cause for denial of benefits.

(4)   Payment for allowable expenses incurred shall be made under section 3112 of the act.

(5)    Payment for work loss shall be made under section 3112 of the act. Written verification from an employer may be required by  a  servicing insurer before payment.

(6)   Payment for survivor's loss benefits shall be made to the surviving spouse or eligible dependents under section 3112 of the act. If there is no surviving spouse, benefits for a minor shall be paid to a guardian appointed by a court of competent jurisdiction. A certified copy of guardian appointment may be  required   by  a servicing   insurer   before payment.

History: 1979 AC; 1989 AACS.