Florida Statutes, Rules, and Regulations Common to All Lines

A beneficiary receives a claim denial that cites no policy provision and no factual basis, although the insurer did investigate. Has the insurer complied with 626.9541(1)(i)?

Answer and explanation
Answer: B. Section 626.9541(1)(i) reaches two separate failures: denying claims without conducting reasonable investigations, and failing to promptly provide a reasonable explanation for a denial. Conducting the investigation satisfies the first duty but leaves the second unmet, so compliance fails on the explanation. The provision is not limited to uninvestigated claims and does not require prior approval of denials.Source: Fla. Stat. § 626.9541 — (1)(i), Reasonable explanation on denial

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