Which of the following is a violation of the Unfair Trade Practices Act?

• A. Failing to act promptly.
• B. Providing prompt denial decisions when due.
• C. Maintaining complaint-handling procedures precisely.
• D. Affirming a claim promptly when entitled.

Answer: (A)

Timely handling of claims is what the Unfair Trade Practices Act expects. When a carrier or adjuster fails to act promptly—such as delaying acknowledgment, investigation, or a decision—the insured can be left waiting and disadvantaged, which the act aims to prevent. This kind of delay is considered an unfair practice because it undermines fair and efficient resolution of claims. The other options describe behaviors that support proper claims handling: providing denial decisions when they’re due keeps the process transparent and timely; maintaining complaint-handling procedures precisely ensures orderly and fair operations; and affirming a claim promptly when entitled reflects correct and fair payment. So the violation is failing to act promptly.