Ace the North Carolina Adjuster Exam 2026 – Adjust and Triumph with Confidence!

Question: 1 / 400

What is an example of an unethical settlement practice?

Offering a reasonable settlement based on damages.

Providing clear explanations for denial of claims.

Delaying payment without justification.

Delaying payment without justification is an example of an unethical settlement practice because it undermines the trust and fair treatment owed to the claimant. Insurance companies and adjusters have a duty to process claims promptly and to communicate effectively with claimants. When claims are delayed without a valid reason, it can result in unnecessary financial hardship for the insured, who may be relying on that payment to cover losses or expenses. Ethical practices demand timely resolutions and transparency in claims handling, ensuring that claimants are treated fairly and with respect.

In contrast, offering reasonable settlements based on damages, providing clear explanations for denial of claims, and proactively contacting the insured with updates are all examples of ethical practices that contribute to an open and honest relationship between the insurer and the insured.

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Proactively contacting the insured with updates.

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