September 2005 Dec Page

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Question of the Month

 

The National Association of Insurance Commissioners (NAIC) created the Unfair Claims Settlement Practices Act to set forth standards for the investigation and disposition of claims arising under policies or certificates. However, how many insureds even know about the act or how it operates? How many states have adopted the act or passed legislation similar to it in order to establish guidelines by which to settle insurance claims? What claims practices are deemed unfair and are prohibited by the act?

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