Which of the following is not typically considered an unfair claims practice?

• A. Refusing to pay persons bringing false or fraudulent claims
• B. Failing to promptly acknowledge claims
• C. Misrepresenting policy provisions
• D. Delaying payment without justification

Answer: (A)

Handling claims involves distinguishing fraud from legitimate claims. Not paying a claim that is clearly false or fraudulent is not an unfair claim practice; it’s the proper response to fraud and protects the insurer from paying for invalid claims. The other options describe conduct that harms legitimate claimants—failing to promptly acknowledge a claim, misrepresenting policy provisions, and delaying payment without justification—which are considered unfair practices. So denying a fraudulent claim is the best answer because it reflects taking a correct, defense against fraud rather than unfairly disadvantaging a rightful claimant.