Which of the following is NOT considered an Unfair Claims Settlement Practice?

Providing claim payments to insureds with a coverage statement is not considered an unfair claims settlement practice because it reflects compliance with the terms outlined in the insurance policy. This action indicates that the insurer is fulfilling its obligation to pay claims according to the coverage agreed upon in the contract. When an insurer provides payment accompanied by a coverage statement, it demonstrates transparency and adherence to the policy's provisions, promoting fairness in the claims process.

In contrast, the other options involve unethical practices or violations of regulations. Misrepresenting policy provisions constitutes a deceptive tactic that undermines the trust between the insurer and the insured. Refusing to pay a claim without reasonable investigation disregards the requirement for insurers to investigate claims thoroughly before making a payment decision, potentially harming the insured’s rights. Attempting to settle a claim based on an altered application compromises the integrity of the claims process and may lead to fraudulent activities, ultimately disadvantaging the policyholder.

Therefore, the choice of providing claim payments with a coverage statement is aligned with fair insurance practices and regulations, distinguishing it from the other options that reflect unethical behavior.