North Carolina Adjuster Practice Exam

The reason an insurer that employs repair shop staff is not engaging in an Unfair Claims Settlement Practice is that having a repair shop staff integrated into the insurer’s operations is a common and acceptable practice within the industry. This can enhance efficiency and customer service, as having in-house repair personnel can facilitate quicker assessments and repairs, ultimately benefiting policyholders.

In contrast, the other options illustrate practices that would typically be considered unfair. An insurer denying claims without explanation lacks transparency and can frustrate policyholders, as they are left without clear reasons for the denial. Similarly, failing to investigate claims undermines the integrity of the claims process and can lead to unjust outcomes for policyholders. Lastly, delaying payment without reason disrupts the timely resolution of claims and can create unnecessary hardship for policyholders awaiting their funds. Each of these actions contradicts the principles of fair treatment and efficiency expected in claims handling.