Which one of the following statements is true regarding elements of good-faith claim handling?

Which one of the following statements is true regarding elements of good-faith claim handling? 

A. A claim file's medical bills, doctors' reports, and other information on each claimant should be in chronological order.
B. Once contact with the insured is made, the claim representative should acknowledge and assign the claim.
C. Claim representatives should use policy provisions, such as arbitration clauses, when applicable, to resolve disputes over the settlement amount.
D. Generally, the first activity of the insurer in the claim handling process involves two functions—investigating the claim and concluding the claim.


Answer: C. Claim files should be in a logical order that results in more efficient claim processing. Claim representatives should use policy provisions, such as arbitration clauses, when applicable, to resolve disputes over the settlement amount.