Which of the following is NOT an unfair claims settlement practice?

The practice of attempting to settle a claim through arbitration is a legitimate process and is not considered an unfair claims settlement practice. Arbitration is a method of resolving disputes outside of court, where an impartial third party, the arbitrator, reviews the evidence and makes a binding decision. This approach can be beneficial for both parties as it can expedite the resolution of a claim and provide a forum for both sides to present their cases without going through prolonged litigation.

In contrast, excessive delays in claim processing, refusal to pay claims without a proper investigation, and failing to provide a reasonable explanation for decisions made regarding claims are all considered unfair practices because they can lead to unnecessary frustration and hardship for policyholders. These behaviors compromise the integrity of the claims process and can potentially violate regulations designed to protect consumers in the insurance industry.