Is failing to settle clear liability claims seen as acceptable practice in claims handling?

In the context of claims handling, it is not deemed acceptable practice to fail to settle clear liability claims. This aligns with the ethical standards and best practices established in the insurance industry. Adjusters are expected to evaluate claims thoroughly and act in the best interests of policyholders, which includes settling legitimate claims promptly and fairly when there is clear liability.

Failing to settle clear liability claims can lead to significant consequences for both the insured and the insurer, including unnecessary litigation costs, damaged customer satisfaction, and potential regulatory scrutiny. Furthermore, state laws and regulations often require adjusters to act in good faith, meaning timely and fair settlements are critical to maintaining compliance and fostering trust in the claims process.

While there may be nuances depending on specific situations or jurisdictions, the overarching principle is that clear liability claims should be honored and settled appropriately. This understanding underscores the importance of fair claims handling and the duties of an adjuster to uphold these standards.