Delaying or refusing a settlement solely because the claimant retains an attorney or public adjuster is considered unfair.

• A. True
• B. False
• C. Only if the insured is unrepresented
• D. Only with a court order

Answer: (A)

In claims handling, fairness means not penalizing a claimant for seeking representation. Delaying or refusing a settlement solely because the claimant has an attorney or public adjuster is an unfair claim practice because it punishes the insured for exercising a right that helps protect their interests. The insurer should evaluate the claim based on the policy terms, the facts of the loss, and the documented evidence, not on who represents the claimant. Representation is a normal, legitimate part of navigating a claim, and using it as a reason to stall payment undermines good-faith handling. Therefore, the statement is true.