Which action is NOT considered an unfair claims settlement practice in PA?

In the context of claims settlement practices in Pennsylvania, failing to promptly settle a claim for which liability is uncertain is not classified as an unfair claims practice. This is because insurers often face situations where liability is unclear, and they are not obligated to settle simply because a claim has been made. In such cases, insurers may need to conduct further investigation to ascertain the facts before making a settlement decision. This careful deliberation is a standard part of the claims process, reflecting the insurer's responsibility to assess the legitimacy of the claim and the potential liability involved.

In contrast, the other actions outlined are indeed considered unfair claims settlement practices, as they indicate a failure to act in good faith or adhere to reasonable industry standards. For example, promptly acknowledging communications about claims is essential for maintaining transparency and trust between the insurer and the claimant. Similarly, not affirming or denying coverage within a reasonable time can lead to unnecessary delays and confusion for the claimant. Appealing an arbitration award merely to compel acceptance of a lower settlement reflects a lack of integrity in the negotiation process. These practices are typically discouraged to protect consumers and ensure fair treatment in claims processing.