Who has the final responsibility for fairly settling insurance claims?

The final responsibility for fairly settling insurance claims lies with the insurer. This entity is ultimately accountable for ensuring that settlements are conducted in accordance with the terms of the insurance policy and the regulations governing insurance practices. The insurer bears the financial risk and has the obligation to uphold the contractual commitments made to policyholders.

While the insurance adjuster plays a crucial role in evaluating and assessing claims, and the agent selling the policy contributes to the relationship by facilitating coverage, it is the insurer that retains the authority to make final decisions regarding claims. This means that insurers must have established policies and practices to ensure equitable treatment of claims, following both the ethical standards of the industry and legal obligations. Thus, the insurer's responsibility encompasses not only initial claim assessments but also the overall adjudication process, making them the key player in the fair settlement of claims.