What occurs if an insurer receives prior written notice of a claim from another person?

When an insurer receives prior written notice of a claim from another individual, the primary concern is to ensure that the claim is handled according to the established policy terms and agreements. In this context, the insurer is still bound to settle the claim with the originally designated person, assuming that person has the valid coverage and rights under the insurance policy.

This means that simply receiving notice from another party does not alter the obligation of the insurer to the original claimant if that claimant remains eligible under the policy. The insurer's duty to pay is contingent upon the terms of the contract and is not dependent on notifications from other parties.

The other options suggest actions that don't align with the responsibilities established within the insurance contract. Redirecting payments or denying a claim outright without adequate justification would not be appropriate unless the policy explicitly allows for such changes in claims processing. Similarly, automatic rejection of claims lacks the nuanced consideration that insurance processes require, as each claim typically needs to be evaluated based on its merits and the terms of the policy.