Which of the following is not an unfair claim settlement practice?

The choice that represents an action that is not considered an unfair claim settlement practice is the need for written documentation of claim details. Insurance companies often require specific documentation to process claims effectively. This requirement is a standard practice that helps ensure that claims are evaluated fairly and thoroughly based on the evidence provided.

In contrast, the other options highlight practices that could be seen as manipulative or harmful to the insured. For instance, failing to acknowledge or act promptly on a claim creates delays that can negatively impact the insured’s experience and financial situation. Similarly, compelling an insured to sue by offering inadequate settlements is considered coercive and unfair, undermining the trust that should exist in the insurer-insured relationship. Finally, failing to accept or deny a claim within a reasonable time can also lead to frustration and financial strain on the policyholder, which is why these practices are labeled as unfair.

Thus, the requirement for written documentation is a legitimate and necessary component of the insurance claim process, unlike the other actions listed, which reflect poor handling of claims.