Section 31A-26-301 - Timely payment of claims(1)(a) Unless otherwise provided by law, an insurer shall timely pay every valid insurance claim made by an insured.(b) By rule the commissioner may prescribe:(i) the kinds of notice and proof of loss that will establish validity;(ii) the manner in which an insurer may make a bona fide denial of a claim;(iii) the periods of time within which payment is required to be made to be timely; and(iv) the reasonable interest rates to be charged upon late claim payments.(2)(a) Notwithstanding Subsection (1) and subject to Subsection (2)(b), the payment of a claim is not overdue during any period in which: (i) the insurer is unable to pay the claim because there is no recipient legally able to give a valid release for the payment; or(ii) the insurer is unable to determine who is entitled to receive the payment.(b) Subsection (2)(a) applies only if the insurer:(i) promptly notifies the claimant of the inability to pay the claim; and(ii) offers in good faith to pay the claim promptly when the inability to pay the claim is removed.(3) This section applies only to a claim for first party benefits made by a person who is: (a) named or defined as an insured under the terms of an insurance policy;(b) described as a covered person under the terms of a policy of health care insurance as defined in Section 31A-1-301; or(c) named, defined, or described: (i) as: (D) otherwise covered person; and(ii) under the terms of: (A) a life insurance policy; orAmended by Chapter 309, 2002 General Session.