At what point does an insurer have the obligation to pay for a loss?

The insurer's obligation to pay for a loss is triggered at the time of loss, provided that the policy is in effect at that moment. This means that once the insured event occurs, the insurer is responsible for fulfilling its obligations as outlined in the policy, subject to any terms or conditions that may apply.

This reflects the fundamental principle of insurance, where coverage is linked to specific events or circumstances that lead to a loss. The timing of the loss is crucial because, without a loss occurring, there is no claim to process. Thus, an insurer must recognize its responsibility as soon as the policyholder suffers a covered loss, assuming all other conditions of the policy are met.

In this context, while having the policy in effect is a prerequisite for coverage, it's the actual occurrence of the loss that activates the insurer's financial responsibility.