Who regulates an insurer's claim settlement practices?

The regulation of an insurer's claim settlement practices falls under the jurisdiction of state insurance departments. These departments are responsible for ensuring that insurance companies operate fairly and comply with both state laws and regulations. They oversee various aspects of the insurance industry, including the rates and forms used in policies as well as the practices related to settling claims. This oversight helps protect consumers by ensuring that they receive fair treatment when filing claims and that insurance companies adhere to the established guidelines.

State insurance departments have the authority to investigate complaints against insurers and can impose penalties or take corrective actions if they find unfair or deceptive practices. By regulating these practices, state insurance departments play a crucial role in maintaining the integrity of the insurance market and upholding consumer rights.