Before an insurer can deny a claim, they are required to do what?

The correct choice is that an insurer must conduct a reasonable investigation before denying a claim. This requirement is rooted in the principles of good faith and fair dealing, which govern the insurance industry. It ensures that insurers thoroughly assess the facts and circumstances surrounding the claim to make an informed decision.

A reasonable investigation typically includes reviewing all relevant information, potentially speaking to witnesses, examining documents, and considering all aspects of the claim. By conducting this investigation, insurers demonstrate their commitment to uncovering the truth and treating policyholders fairly. If they fail to conduct a proper investigation, they risk acting arbitrarily or capriciously, which can lead to legal consequences and potential penalties under state insurance laws.

The other options, while they may be part of an insurer's general claim management process, do not represent a fundamental requirement prior to denying a claim. Therefore, conducting a reasonable investigation is an essential step that protects both the insurer's interests and the rights of the insured.