State RegulationsMA specificDifficulty 1/5
Under M.G.L. c. 176D, § 3(9), which of the following is an unfair claims settlement practice?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
M.G.L. c. 176D, § 3(9) catalogs unfair claims settlement practices, including misrepresenting pertinent facts or insurance policy provisions relating to the coverages at issue to a claimant. The Massachusetts Division of Insurance enforces the catalogue against insurers that bend the truth during claims handling. By contrast, the provision's aim is fair and prompt handling, so requesting reasonable proof, timely coverage decisions, and prompt payment of clear liability are the conduct it encourages, not the conduct it condemns.
Why the other options are wrong
- A) Requesting reasonable proof of loss is proper claims handling and does not fall within the M.G.L. c. 176D, § 3(9) catalogue.
- B) A timely affirmance or denial of coverage is exactly the prompt-handling behavior M.G.L. c. 176D, § 3(9) is meant to promote.
- C) Prompt payment once liability is reasonably clear is lawful, not an unfair claims settlement practice under M.G.L. c. 176D, § 3(9).
Memory hook
Bending the truth to a claimant is the § 3(9) violation; prompt and honest handling is the duty.