What is one of the 12 mandatory policy provisions concerning claims in health insurance?

Payment of claims is one of the 12 mandatory policy provisions in health insurance because it establishes the insurer's obligation to pay for covered services after a claim is submitted. This provision ensures that policyholders can receive the benefits they have paid for when they incur healthcare expenses, thereby providing financial protection and peace of mind. The timely and efficient processing of claims is crucial for beneficiaries to access necessary medical care without facing undue delays or financial burdens.

The other options do not pertain to mandatory provisions regarding claims. For instance, an annual review of policy terms is not a typical requirement but rather a best practice to ensure continued understanding of the policy. Change of premium amounts generally falls under rate adjustments rather than claim provisions, and policy modification with notice typically relates to changes in policy terms rather than claims processing. Thus, the focus of mandatory provisions is primarily on payment and claims handling, highlighting the necessity of clear guidelines for financial transactions between insurers and insureds.