Failing to respond to communications from insureds within how many business days is considered an unfair claims settlement practice?

The correct answer is based on regulations that govern the insurance industry's practices regarding communication with policyholders. Specifically, regulations typically require insurers to respond to communications from the insured within a set time frame to ensure timely handling of claims and maintain trust in the insurance process.

In many jurisdictions, including Hawaii, the established standard is that insurers must respond within 14 business days. This timeframe is designed to protect the interests of the insured and promote fair treatment in the claims process. If an insurer fails to communicate within this timeframe, it may be deemed an unfair claims settlement practice, reflecting poorly on the insurer's obligation to act in good faith.

Understanding this timeframe is crucial for adjusters, as it emphasizes the importance of timely communication in fostering positive relationships with policyholders and adhering to legal and ethical standards in claims handling.