An example of an unfair claims practice would be what?

Failing to effectuate prompt, fair, and equitable settlements of a claim is a clear example of an unfair claims practice because it contradicts the ethical and legal responsibilities that insurance companies have towards their policyholders. Insurance companies are obligated to handle claims in a timely manner and to provide fair assessments in order to ensure that policyholders receive the benefits they are entitled to under their policies. Delaying or avoiding fair settlement practices not only undermines consumer trust but also potentially places an unjust burden on individuals who rely on insurance to recover from losses. This practice is viewed unfavorably under Florida’s insurance regulations, which aim to protect policyholders from exploitation and ensure that they are treated fairly throughout the claims process.

On the other hand, prompt settlement of claims enhances consumer trust and regulatory compliance, while conducting regular claims audits helps improve the efficiency and integrity of the claims process. Offering extra benefits can often be a marketing strategy or a means to enhance customer satisfaction, but does not constitute unfair practices as described in the context of the question.