---
title: "Review claims handling against the unfair claims settlement practices"
url: "https://ailawframework.com/practice/insurance-law/review-claims-handling-against-the-duty-of-utmost-good-faith/united-states"
type: "task_jurisdiction_version"
site: "AI Law Framework"
id: "A22-MA20261022-4-US"
practice_area: "Insurance Law"
tier: "yellow"
lawyer_review: "required"
jurisdictions: ["US"]
last_reviewed: "2026-10-22"
---

# Review claims handling against the unfair claims settlement practices

> From the claim file, list each paragraph of Insurance Code § 790.03(h) the lawyer identifies and the document that is said to show it. Do not decide that the insurer breached a duty or that payment should be made.…

Canonical page: https://ailawframework.com/practice/insurance-law/review-claims-handling-against-the-duty-of-utmost-good-faith/united-states  
Last reviewed: 2026-10-22

Site index for agents: https://ailawframework.com/llms.txt

## Key facts

| Fact | Value |
| --- | --- |
| Practice area | [Insurance Law](https://ailawframework.com/practice/insurance-law.md) |
| Human involvement | Yellow: Lawyer and AI draft together |
| How AI is used | From the claim file, list each paragraph of Insurance Code § 790.03(h) the lawyer identifies and the document that is said to show it. Do not decide that the insurer breached a duty or that payment should be made. State law governs, and the lawyer confirms the governing state. For example, California. |
| What the lawyer must review | California Insurance Code § 790.03(h) lists unfair claims settlement practices, including misrepresenting pertinent facts or policy provisions, failing to acknowledge communications reasonably promptly, failing to adopt reasonable standards for prompt investigation, failing to affirm or deny coverage within a reasonable time after proof of loss, not attempting in good faith to effectuate prompt, fair, and equitable settlements where liability has become reasonably clear, and failing to provide promptly a reasonable explanation of a denial or compromise. The opening words require the act to be knowingly committed or performed with such frequency as to indicate a general business practice. 15 U.S.C. § 1012(a) confirms this is state insurance regulation. You decide whether the handling meets that section. There is no opened national duty of utmost good faith in the Insurance Contracts Act sense. State law governs, and the lawyer confirms the governing state. For example, California. |
| Written for | United States |
| Applies to | [Review claims handling against the duty of utmost good faith](https://ailawframework.com/practice/insurance-law/review-claims-handling-against-the-duty-of-utmost-good-faith.md) |

## Checking plan

- What the AI does: From the claim file, list each paragraph of Insurance Code § 790.03(h) the lawyer identifies and the document that is said to show it. Do not decide that the insurer breached a duty or that payment should be made. State law governs, and the lawyer confirms the governing state. For example, California.
- Basis: Checked against the linked sources on 22 October 2026. Confirm the current instrument before reliance.

## Notes

- Paragraphs (h)(6) through (h)(15) add further practices, including compelling litigation by low offers and advising a claimant not to obtain an attorney. Read the paragraph you rely on.
- A single-file delay is not, on the opened text, enough by itself to meet the frequency words.
- State law governs; confirm the governing state before relying on this.

## Sources

- [California Insurance Code § 790.03, unfair methods of competition and unfair or deceptive acts](https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=INS&sectionNum=790.03.) (checked 2026-10-22)
- [15 U.S.C. § 1012, regulation of the business of insurance by State law (McCarran-Ferguson Act)](https://www.law.cornell.edu/uscode/text/15/1012) (checked 2026-10-22)

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*