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.Offering settlement based on a properly conducted investigation
b.Failing to acknowledge and act reasonably promptly upon communications with respect to claims
c.Promptly investigating a claim after notice is received
d.Requesting reasonable proof of loss before paying a claim
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.
Law Reference: Cal. Ins. Code §790.03(h)Practice all 315 questions free — no signup required.
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Reviewed by John Zihao Zhang — California-Licensed Life Insurance Agent (CA Dept. of Insurance License #4396095 — verify)