Fair Claims Settlement Practices Act

The Fair Claims Settlement Practices Act is a law designed to ensure that insurance companies handle claims fairly and transparently. It outlines the obligations of insurers to investigate claims properly, communicate clearly with policyholders, and make timely payments for valid claims. The Act aims to protect consumers from unfair practices such as unjust denials or delays in payment, ensuring that they receive the benefits they are entitled to under their insurance policies. Overall, it promotes integrity and accountability within the insurance industry, fostering trust between insurers and policyholders.