According to complaints, what is an action that insurance companies must avoid regarding claims?

Insurance companies must avoid making lowball offers during litigation because such practices can undermine the fairness and integrity of the claims process. In the context of an insurance claim, a lowball offer is typically a settlement amount that is significantly lower than what is fair or reasonable considering the specifics of the claim and the impacts of the insured event.

This behavior is often viewed as exploiting the claimant's potential vulnerability, especially during litigation when they may be more inclined to settle for less due to the stress and costs associated with legal proceedings. By avoiding lowball offers, insurance companies demonstrate adherence to ethical standards and promote a more equitable resolution of claims, ensuring that claimants receive compensation that accurately reflects their losses and damages.

The other actions, such as prompt communication acknowledgment, reasonable settlement delays, and immediate claim denials, may have their own associated regulatory obligations and guidelines, but they do not typically strike at the core of fair treatment in the same way that making lowball offers does.