Under North Carolina law, how must claims be settled?

Under North Carolina law, claims must be settled in a fair and timely manner, ensuring compliance with all regulatory requirements. This principle is fundamental to protecting consumers and ensuring that all policyholders receive appropriate treatment. Fairness in claims handling means that insurers must apply consistent standards and practices in evaluating and settling claims, without discrimination or arbitrary decision-making.

Timeliness is also crucial; insurers are expected to process claims without unnecessary delay, which not only fosters trust but also helps policyholders receive the benefits of their insurance coverage when they need them the most. Compliance with all regulatory requirements ensures that insurers are held accountable to the laws governing their operations, contributing to overall market integrity and consumer protection.

This approach is in stark contrast to settling claims in a discriminatory manner, arbitrarily, or solely at the discretion of the insurer, which could lead to unfair practices and undermine consumer confidence in the insurance system. Ensuring that claims are handled fairly supports a balanced and ethical framework within which insurers operate in North Carolina.