Final answer:
An insurer is required to obtain further information when processing a claim to ensure accuracy and validity. This may involve requesting additional documentation or conducting investigations.
Step-by-step explanation:
An insurer is required to obtain further information when processing a claim to ensure the accuracy and validity of the claim. This may involve requesting additional documentation, such as medical records or police reports, or conducting investigations to gather more information about the incident. By obtaining all the necessary information, the insurer can make an informed decision regarding the claim.
For example, if an automobile insurance claim is being processed, the insurer may need to gather information about the accident, such as witness statements or repair estimates, to assess the claim's legitimacy and determine the appropriate compensation.
Obtaining further information is important to prevent fraudulent claims and to ensure fairness in the claims process. It allows the insurer to make accurate judgments and provide timely settlements to policyholders.