Because insurers control how claims are resolved, courts reason that insurers should be responsible for the outcome of their claim handling if they have acted in bad faith. Therefore, courts hold insurers to a higher standard of conduct to

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Because insurers control how claims are resolved, courts reason that insurers should be responsible for the outcome of their claim handling if they have acted in bad faith. Therefore, courts hold insurers to a higher standard of conduct to

A. Encourage insurers to be equitable in all insurance transactions.

B. Encourage insurers to keep rates accurate, fair, and reasonable.

C. Discourage insurers from abusing their position of power.

D. Discourage insurers from deceiving the public in marketing and advertising practices.

Answer: C

AINS Chapter 6

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