State RegulationsGA specificDifficulty 2/5
An insurer in Georgia receives a claimant's written request for the specific reasons its coverage denial was made, and it never responds in writing. Under O.C.G.A. § 33-6-34, which unfair claims settlement practice has occurred?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under O.C.G.A. § 33-6-34, an enumerated unfair claims settlement practice is failing to provide, upon written request, a written explanation of the basis on which a denial was made. Read with O.C.G.A. § 33-6-33, the practice violates the article when committed with such frequency as to indicate a general business practice, and the Insurance Commissioner may investigate and sanction it.
Why the other options are wrong
- A) Claim-file confidentiality is not one of the enumerated unfair claims settlement practices in the Georgia statute.
- B) The unfair claims practices article does not concern the use of Commissioner-approved policy forms; that concept belongs to other areas of regulation.
- C) There is no statutory duty to offer a settlement before litigation; the enumerated violation concerns how settlements are attempted when liability is reasonably clear, not a pre-suit offer obligation.
Memory hook
Deny it? Then write it — denial reasons must be put in writing on request.