(UN) Fair Claims Practices Act

Fair claims practices represents ultimate oversight
over the claims process. Bad faith is of concern when
handling claims but of equal concern is the fair/unfair
claims practices act. So just what is it?

The Unfair Claims Practices Act, also known as the
Unfair Claims Settlement Practices Act is legislation designed
to protect consumers from inappropriate conduct of insurance
companies.

The act permits insurance regulatory authorities to take legal
action against an insurance company that engages in certain unfair
claim settlement practices with such frequency that it amounts to
a general business practice. The eight core fair claims practices
components (depending on the state in which you handle claims)
are as follows:

You must acknowledge the claim
You must process claimant/Insured claim promptly
You can't misrepresent your policy
You can't influence other policy settlements
You can't force claimant/Insured to settle for less
You can't force the claimant/Insured to travel
You can't appeal excessive amounts of claims
You Can't refuse or delay claims without a plausible reason