Unfair claims settlement practices act - National Association of 2025

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Final answer: Providing claim payments under insurance guidelines is not an unfair practice, while refusing to pay claims without investigation, compelling insureds to sue, and delaying claim processing are unfair practices.
Example of Unfair Claims Practice The insurance company delays payment, rendering the business owner unable to repair any of the damage. The insurance company continues using delay tactics to avoid making a payment. For example, the claims representative keeps forgetting to send the claim forms.
The model UCSPA defines a variety of specific unfair practices including misrepresenting facts or policy provisions, unjustifiably delaying investigations into claims, denying claims without a reasonable investigation, delaying payment on claims, and denying claims without an explanation.
Textbook Expert-Verified⬈(opens in a new tab) Violations of the Unfair Claims Settlement Practices Act include failing to promptly acknowledge claims, unreasonably delaying claims investigations, denying claims without a reasonable basis, and misrepresenting policy terms.
Unfair Claims Practices Defined Knowingly misrepresenting to claimants and insureds relevant facts or policy provisions relating to coverages at issue; B. Failing to acknowledge with reasonable promptness pertinent communications with respect to claims arising under its policies; C.
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Which of these is NOT an Unfair Claims Settlement Practice? Refusing to pay persons brining false or fraudulent claims.
Textbook Expert-Verified. The option that would NOT be considered an unfair claims practice is D: Offering payment of approved claims within 30 days after affirming liability. The other options listed describe actions that disadvantage claimants, making them examples of unfair practices.

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