2025 New York Life, Accident, and Health Complete Practice Test

The correct choice identifies that attempting to settle a claim by arbitration is not considered an unfair claims settlement practice. Arbitration is a legitimate method for resolving disputes between insurers and policyholders, and it can provide a fair avenue for settlement outside of litigation. In many cases, arbitration is encouraged as it can be a quicker and less costly alternative to going through the court system.

In contrast, the other options listed reflect practices that are deemed unfair. For example, delaying a settlement unnecessarily can harm the policyholder by prolonging a resolution, thereby creating financial or emotional stress. Similarly, misrepresenting pertinent facts to influence the settlement process undermines the trust essential in insurance relationships and can lead to unfair outcomes for the claimant. Lastly, an attempt to investigate a claim, while a necessary step in the claims process, does not fall under unfair practices when conducted fairly and in good faith. Therefore, arbitration stands out as an acceptable and commonly practiced method of settlement rather than an unfair one.