Which of the following is NOT an unfair claims settlement practice if committed by an insurance company in PA?

In Pennsylvania, an unfair claims settlement practice occurs when an insurance company engages in actions that are misleading or detrimental to the policyholder. The reason that failing to promptly settle a claim for which liability is uncertain is not considered an unfair claims settlement practice is that the determination of liability can be complex. Insurance companies often must assess the circumstances surrounding a claim thoroughly to establish who is responsible before making a settlement. This means that taking time to evaluate liability is a standard practice rather than an unfair tactic.

In contrast, the other actions mentioned are considered unfair because they directly undermine the policyholder's rights or the integrity of the claims process. For example, raising policy defenses to reduce a claim can be perceived as attempts to deny valid claims without just cause. Similarly, offering to settle claims for less in order to encourage litigation reflects an unethical strategy aimed at pressuring the policyholder. Lastly, failing to promptly acknowledge communications creates unnecessary delays and demonstrates a lack of respect for the policyholder's concerns. Each of these practices violates the expectation of fair dealing in the claims settlement process.