An auto insurer waits four months without responding to repeated written inquiries from an insured about coverage on a covered collision claim. Under §790.03(h)(5), this constitutes:
Explanation
Section 790.03(h)(5) defines as an unfair claims practice 'not attempting in good faith to effectuate prompt, fair, and equitable settlements of claims in which liability has become reasonably clear' and the related duty under (h)(2)/(3) to acknowledge and act reasonably promptly on communications. Months of silence without justification violate the statute. The Fair Claims Settlement Practices Regulations (10 CCR §2695.5(e)) require acknowledgment within 15 calendar days, and no statute gives an insurer a six-month investigation window.
Law Reference: Cal. Ins. Code §790.03(h)(5)This topic, taught in full in the Personal Lines Insurance Producer guide. Personal Lines Insurance Producer — Complete Study Guide (2026) — PDF + EPUB, $19.99 · 14-day refund →
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