In good-faith claims handling, which practice best demonstrates keeping insureds informed?

• A. Conducts fair evaluations
• B. Maintains regular and prompt communication
• C. Maintains complete and accurate documentation
• D. Conducts good-faith negotiation

Answer: (B)

Keeping insureds informed hinges on regular and timely updates about claim status, decisions, and next steps. This directly demonstrates good-faith handling because it builds transparency and trust: the insured understands where the claim stands, what information is needed, and when to expect a determination, which reduces surprises, confusion, and potential disputes. While fair evaluations, complete and accurate documentation, and good-faith negotiation are all important parts of the claims process, they address the quality of assessment, record-keeping, and settlement efforts rather than the ongoing flow of information. By consistently communicating progress, reasons for decisions, and upcoming milestones, the adjuster helps the insured feel involved and treated fairly throughout the process.