Which of the following is an example of an Unfair Claim Settlement Practice?

The selection of failure to provide a reasonable basis for the denial of a claim upon request as an example of an Unfair Claim Settlement Practice is accurate because it addresses a fundamental requirement that insurers must adhere to when processing claims. Insurance companies are expected to act in good faith and provide clear reasoning for denying a claim. If a claimant asks for an explanation of why their claim was denied, the insurer is obliged to provide a reasonable basis for that decision.

When insurers fail to offer this information, it can be seen as a lack of transparency and fairness in their claims handling processes. Such practices can erode trust between the insurer and the insured, which is why they are classified under unfair settlement practices. This breach can also lead to regulatory actions against the insurer, as it violates the principles of fair dealing that insurance laws aim to uphold.