The proof of claim form is “used by the creditor to indicate the amount of the debt owed by the debtor.” This form, as you might expect, is evidence given by the claimant that their claim is being processed by their insurance provider. According to 31A-27a-602)(1)(a)-(g), proof of claim comprises the reason for the claim, the type and amount of security on it, the status of payments rendered (when applicable), and identifying information of the claimant.
Example Sentence
A proof of claim is not required for every kind of debt being liquidated; but the creditor may prepare to make one out upon request.
Case Study
Where proof of claims are required, they must be filed 18 months after order of liquidation is filed. However, certain policy payouts don’t require a proof of claim to be filed unless the liquidator of the claim makes an express request for it. These cases, as outlined in 31A-27a-601, include payments of money left over in a voluntarily terminated policy and “any other policy insuring the life of a person.”
Other Important Information
A proof of claim is, in one sense, a safeguard for debtors while they liquidate their debts, much the way a receipt is proof of a service having been secured. However, extenuating circumstances may require that proofs of claim be withdrawn (when they are shown to be incorrect, for instance). A proof of claim may be withdrawn for the reasons and by the means outlined in 31A-27a-602. When a claimant files a proof of claim, they are waiving their right to the personal assets of the insured whose insurer is making payments and restricting the appeals themselves to the liquidator of the claim. Although the claimant filing a proof of claim essentially relinquishes direct interaction with the debtor, this does not release the insured from obligations outside their coverage.
Proof of Claim definition provided by Utah’s Best Personal Injury Attorneys.