If an insurance company delays all claim payments for 90 days despite having a clear liability limit, what are they guilty of?

A delay of 90 days in the payment of claims, even when there is a clear liability established, is indicative of an insurance company engaging in unfair claims settlement practices. Insurance regulations exist to ensure that claims are processed promptly and fairly. When an insurer unnecessarily prolongs the claims process or fails to settle claims in a timely manner, this behavior can be deemed as violating ethical and legal standards designed to protect policyholders.

Unfair claim settlement practices include actions such as failing to provide reasonable explanations for delays, not communicating with claimants, or not adhering to established timelines for claims processing. By extending the claim payment delay to 90 days without just cause, the insurance company undermines the trust and financial security expected by policyholders, thereby falling afoul of regulations intended to govern ethical business operations in the insurance industry.

Other options do not accurately reflect the implications of the delay. Avoiding nuisance claims or fraudulent claims, or acting to prevent discrimination between claimants do not justify the unreasonable delay in payments. Hence, the focus on the delay itself, in light of established liability, aligns directly with the notion of unfair claim settlement practices.