What is the standard of care for an insurance company?

The standard of care for an insurance company in Washington is a legal responsibility to act in a way that a reasonable and prudent person would act in the same circumstances. This refers to the expectations of providing sensible decisions and reasonable services for their policyholders. Insurance companies are legally responsible for providing full disclosure to policyholders of the coverage and other important matters related to policies. They must also follow state laws, regulations, and procedures in dealing with insured customers’ claims. Insurance companies must also exercise reasonable diligence and care in order to avoid unreasonable delays or unnecessary risks. They must be honest in their dealings with policyholders, including full disclosure of any fees, costs, or other charges related to the policy. They must use reasonable care when selecting reasonable and appropriate coverages and coverages limits that match the customer’s needs and preferences. They must also make sure they are properly evaluating and settling claims in a reasonable and timely manner. Insurance companies must also be reasonable when pricing their policies, charging a reasonable premium and offering the policyholder anytime to ask questions and receive the necessary information to make an informed decision. Furthermore, they must provide the policyholder with any requested documents in a timely manner. Finally, insurance companies must maintain reasonable accounts, bills, and records for the benefit of their policyholders.

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