Which statement is true regarding an insurer's responsibilities?

An insurer's responsibilities include managing claims by either approving (paying) or denying them based on the terms of the policy and the evidence provided. This process is crucial for ensuring that claims are handled fairly and in accordance with the contractual obligations outlined in the insurance policy. The insurer has a duty to thoroughly investigate claims to determine their validity before making a decision, thus fulfilling its role in the risk management process.

The other options are not reflective of the insurer's responsibilities. For example, while insurers may analyze market trends to inform their business strategies, it is not a primary responsibility tied to claims management. Accepting all claims without investigation would undermine the integrity of the insurance contract, as claims must be assessed to determine their legitimacy. Providing free consultations is not typically part of an insurer's responsibilities and is more aligned with the services that might be offered by financial advisors or brokers rather than the insurer itself.