The insurer need not pay interest on death benefits if the proceeds are paid within how many days after the insured's death?

• A. 20 days
• B. 15 days
• C. 5 days
• D. 30 days

Answer: (A)

Prompt payment of death benefits is treated as a timely settlement, so no interest is owed if the insurer settles quickly. In Louisiana, if the death benefit is paid within 20 days after the insured’s death, the insurer is not required to pay interest. If payment occurs after that window, interest on the benefit typically accrues from the date of death (or from when proof of death and required documents are received) until payment is made. This rule encourages prompt claims processing and clarifies when beneficiaries must receive additional interest compensation.