Final answer:
No single country's guidelines dictate how insurers worldwide settle claims. Instead, international standards and local regulations influence practices, with the U.S. having a unique private-led health insurance system. The fundamental law of insurance must still be met internationally.
Step-by-step explanation:
Insurers worldwide do not rely on a single country's guidelines when determining how claims are to be settled. Instead, there are international standards insurance companies may adhere to, which may be influenced by regulations in dominant markets, historical practices, and the nature of the international insurance industry. However, this does not necessarily mean their practices are standardized globally, as local laws and regulations, along with market practices, will also play a significant role.
In the context of health insurance, specifically, the United States is unique in its reliance on private firms to pay for and provide most health insurance. This contrasts with other high-income countries where there tends to be more government involvement in health insurance provision, which can help address issues like moral hazard and adverse selection. The fundamental law of insurance applies regardless of country, stating that the average person's insurance payments over time must cover claims, administrative costs, and allow for profits of the firm.