When insurers refuse to pay claims, what must they do according to Idaho regulations?

According to Idaho regulations, when insurers refuse to pay claims, they are required to conduct a reasonable investigation based on available information. This obligation is rooted in the principle of fair treatment and due diligence toward policyholders. It ensures that insurers have thoroughly assessed the claim and considered all relevant evidence before arriving at a decision to deny a claim. By conducting a reasonable investigation, insurers uphold their duty to act in good faith and can maintain the integrity of the claims process.

This requirement promotes transparency and helps protect the rights of insured individuals, ensuring they are not unfairly denied benefits without a proper review of the situation. Therefore, a reasonable investigation serves as a foundational step in the claims-handling process, affirming the insurer's responsibility to support their decisions with adequate justification.