These laws are state laws that specify claim practices that are illegal. The prohibited claims practices usually include
· Misrepresentation of pertinent facts or insurance policy provisions relating to the coverage at issue in a claim.
· Failure to acknowledge and promptly respond to communications with respect to the claims arising out of insurance.
· Actions that compelled an insured to sue to recover amounts due under insurance policies by offering amounts that are substantially lower than the amounts ultimately recovered in legal actions brought by such insureds.
· Refusing to pay claim without first conducting reasonable investigation based on all available information.
CHAPTER: 6 CLAIMS
