Which of the following is NOT considered an unfair claims settlement practice?

Prompt payment of claims is considered best practice and, therefore, is not viewed as an unfair claims settlement practice. In the insurance industry, timely payment of claims is essential for maintaining trust between insurers and policyholders. When claims are paid promptly, it demonstrates that the insurer is fulfilling its contractual obligations and supporting policyholders during challenging times.

In contrast, practices such as delaying claim payments without cause, misrepresenting policy provisions, and failing to acknowledge claims promptly are typically viewed as unfair because they hinder a policyholder's ability to receive the benefits they are entitled to under their insurance policy. Such actions can lead to consumer frustration, erode trust in the insurance process, and could potentially be subject to regulatory scrutiny. Therefore, prompt payment of claims stands out as the exception among the options listed.