Question

Which of the following is not a prohibited claims settlement practice?

a. Misrepresenting a material fact to a claimant
b. Requiring a claimant's income tax return while investigating a fire
c. Refusing to pay a claim without reasonably investigating it
d. Requiring an insured to release the insurer from a claim in order to receive a partial payment

Answer 1

The correct answer is b. Requiring a claimant's income tax return while investigating a fire is not considered a prohibited claims settlement practice.

Step-by-step explanation:

The correct answer is b. Requiring a claimant's income tax return while investigating a fire. This is not considered a prohibited claims settlement practice.

Prohibited claims settlement practices are actions that are deemed unfair or deceptive to claimants. Examples of prohibited practices include misrepresenting a material fact to a claimant, refusing to pay a claim without reasonably investigating it, and requiring an insured to release the insurer from a claim in order to receive a partial payment. However, requesting a claimant's income tax return during an investigation is not considered a prohibited practice.