What must insurers do before refusing to pay a claim?

Insurers are required to conduct a reasonable investigation before refusing to pay a claim. This obligation is rooted in the principle of fair dealing and good faith in the claims process. A reasonable investigation ensures that the insurer thoroughly examines the details of the claim, the evidence presented, and any relevant policy provisions before making a decision. This step is crucial because it helps the insurer to make informed decisions and prevents the premature denial of valid claims.

Conducting such an investigation typically involves reviewing documents, interviewing witnesses, or consulting experts if necessary. By doing so, the insurer demonstrates that it is taking the matter seriously and is committed to handling claims equitably. This practice not only protects the rights of claimants but also upholds the integrity of the insurance industry as a whole.

The other options presented—such as notifying the claimant via email, waiting for the claim to be fully submitted, or requesting additional documentation immediately—do not encapsulate the essential procedural duty to conduct a thorough investigation. While communication and documentation are important aspects of the claims process, they do not replace the necessity of a detailed and fair inquiry into the facts surrounding the claim.