Under Indiana's Unfair Claims Settlement laws, which of these activities by an Insurance Company is considered illegal?

Under Indiana's Unfair Claims Settlement laws, leaving the insured no choice but to sue the insurance company to settle a claim is considered illegal. This activity indicates an unfair practice by the insurer, as it creates an unnecessary barrier for the insured seeking to resolve their claim. The law is designed to protect consumers from practices that could delay or deny the rightful payment of insurance benefits.

When an insurer forces the insured into litigation to obtain what is rightfully theirs, it undermines the purpose of insurance, which is to provide support and financial security when policyholders need it most. By fostering an environment where insured individuals feel they have no alternative but to resort to legal action, it can lead to a lack of trust and integrity within the insurance process.

In contrast, promptly paying a claim, asking for additional information to settle a claim, and even paying a partial claim are actions that can be legitimate under certain circumstances, as they involve communication, transparency, and adherence to the terms of the insurance policy. These actions are often part of a proper claims settlement process and do not inherently reflect unfair practices.