Marketing & Unfair Claim Practices

Which of the following is an unfair claim settlement practice under Texas law?

Answer

Failing to attempt a prompt, fair settlement when liability is reasonably clear

Failing to effectuate a prompt, fair, and equitable settlement once liability has become reasonably clear is a prohibited unfair claim settlement practice.

Source: Tex. Ins. Code §§542.003(b)(4), 541.060(a)(2)(A)

Not the answer

  • Requesting a proof of loss
  • Paying a valid claim quickly
  • Assigning an adjuster to investigate

Practice this

The Texas All-Lines Adjuster exam is 150 questions and takes 105 correct — 70% — to pass. The app’s page carries a free ten-question test drawn from the same bank, marked as you go.

Take the free practice test