(1) A claimant’s application for compensation must be allowed or rejected in the first instance by the insurer.
(2) The insurer must make a decision on the application within 20 business days after the application is made.
(3) The insurer must notify the claimant of its decision on the application.
(4) If the insurer rejects the application, the insurer must also, when giving the claimant notice of its decision, give the claimant written reasons for the decision and the information prescribed under a regulation.
(5) Subsection (6) applies if the insurer does not make a decision on the application within the time stated in subsection (2) .
(6) The insurer must, within 5 business days after the end of the time stated in subsection (2) , notify the claimant of its reasons for not making the decision and that the claimant may have the claimant’s application reviewed under chapter 13 .