Indiana § 27-4-1-5.6 - Unfair claim settlement practice complaint; response; investigation; report; notice of remedies

§ 27-4-1-5.6. Unfair claim settlement practice complaint; response; investigation; report; notice of remedies

Sec. 5.6. (a) A person who:

(1) has submitted a claim to an insurer under an insurance policy; and

(2) believes that an unfair claim settlement practice described in section 4.5 of this chapter has been committed in connection with the claim;

may file a complaint with the commissioner.

(b) A complaint may not be filed under subsection (a) by a public adjuster (as defined in IC 27-1-27-1) on behalf of a person described in subsection (a) unless the person described in subsection (a) has given written consent for the public adjuster to file the complaint on the person's behalf.

(c) If the commissioner believes an unfair claim settlement practice has occurred, the commissioner shall, within ten (10) business days from the date of receipt of a written complaint, deliver a copy of the complaint to the insurer and shall respond in writing to the complaining party, at the address provided in the complaint, advising the party of the following:

(1) The specific action taken by the department on the complaint.

(2) Any further investigations or other actions that are intended by the department.

(d) An insurer who receives a written notice of complaint under subsection (c) shall promptly conduct an investigation of the matters alleged in the complaint. Within twenty (20) business days from the date of receipt of the complaint, the insurer shall provide to the commissioner and the complaining party a written report containing the following information:

(1) The specific reasons for actions taken by the insurer with respect to the claim.

(2) The specific reasons for any inaction by the insurer with respect to the claim.

(3) If the claim has not been settled, a good faith estimate of the time required for settlement.

(e) An insurer who commits an unfair claims settlement practice or who fails to comply with this section is subject to action by the commissioner under section 6 of this chapter.

(f) Each insurer shall provide to each current policyholder a one (1) time written notice of the remedies provided under this section. Future policyholders shall be notified by the insurer at the time the insurance policy is issued.

As added by P.L.1-1991, SEC.166. Amended by P.L.226-2023, SEC.22.