Regarding state versions of the NAIC model act, which statement is correct?

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Multiple Choice

Regarding state versions of the NAIC model act, which statement is correct?

Explanation:
The key idea is that state adoption of the NAIC model act is not uniform, so who can sue an insurer varies by state. Some states give a private right of action for bad-faith or unfair claims practices to both insureds and other claimants (such as third-party claimants), while other states limit that private action to the insured only. That means there isn’t a single universal rule; some states allow both groups to sue, and others allow only insureds to sue. That variability is why the correct statement reflects a mix: some states permit insureds and claimants to bring lawsuits, while others allow only insureds.

The key idea is that state adoption of the NAIC model act is not uniform, so who can sue an insurer varies by state. Some states give a private right of action for bad-faith or unfair claims practices to both insureds and other claimants (such as third-party claimants), while other states limit that private action to the insured only. That means there isn’t a single universal rule; some states allow both groups to sue, and others allow only insureds to sue. That variability is why the correct statement reflects a mix: some states permit insureds and claimants to bring lawsuits, while others allow only insureds.

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