Which of the following is NOT an example of an unfair claim settlement practice?

Paying a claim promptly after liability is clear aligns with fair and ethical insurance practices. When a claim is filed and the insurer determines that they are liable for the loss, a swift payment not only meets their obligations but also supports the policyholder during what could be a stressful time.

This practice reflects the insurance company's commitment to fulfilling its contractual duties and maintaining good faith in their dealings with clients. Insurers are encouraged to process claims efficiently once they have established that the claim is valid and covered under the terms of the policy.

The other options highlight practices that could be considered unfair. Denying a claim without conducting an investigation or without providing a clear explanation undermines the trust and transparency required in insurance transactions, potentially leading to situations where policyholders are left confused and without recourse. Additionally, requiring excessive proof of loss can hinder timely settlements, placing unnecessary burdens on claimants during what is often an already challenging time.