California Insurance Code & EthicsQuestion 47 of 315
Which of the following actions by an insurer would constitute an unfair claims settlement practice under California law?
a.Requesting reasonable proof of loss before paying a claim
b.Promptly investigating a claim after notice is received
c.Failing to acknowledge and act reasonably promptly upon communications with respect to claims
d.Offering settlement based on a properly conducted investigation
Explanation
§790.03(h)(2) lists failing to acknowledge and act reasonably promptly on claim communications as one of the enumerated unfair claims settlement practices. The other options describe lawful, expected insurer conduct.
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