2023 Wyoming Statutes › Title 26 - Insurance Code › Chapter 13 - Trade Practices and Frauds › Article 1 - Unfair Trade Practices Act › Section 26-13-124 - Unfair Claims Settlement Practices.

26-13-124. Unfair claims settlement practices.
(a) A person is considered to be engaging in an unfair method of competition and unfair and deceptive act or practice in the business of insurance if that person commits or performs with such frequency as to indicate a general business practice any of the following unfair claims settlement practices:
(i) Misrepresenting pertinent facts or insurance policy provisions relating to coverages at issue;
(ii) Failing to acknowledge and act reasonably promptly upon communications with respect to claims arising under insurance policies;
(iii) Failing to adopt and implement reasonable standards for the prompt investigation of claims arising under insurance policies;
(iv) Refusing to pay claims without conducting a reasonable investigation based upon all available information;
(v) Failing to affirm or deny coverage of claims within a reasonable time after proof of loss statements have been completed;
(vi) Not attempting in good faith to effectuate prompt, fair and equitable settlements of claims in which liability has become reasonably clear;
(vii) Compelling insureds to institute litigation to recover amounts due under an insurance policy by offering substantially less than the amounts ultimately recovered in actions brought by such insureds;
(viii) Attempting to settle a claim for less than the amount to which a reasonable person would have believed he was entitled by reference to written or printed advertising material accompanying or made part of an application;
(ix) Attempting to settle claims on the basis of an application which was altered without notice to, or knowledge or consent of, the insured;
(x) Making claims payments to insureds or beneficiaries not accompanied by a statement setting forth the coverage under which the payments are being made;
(xi) Making known to insureds or claimants a policy of appealing from arbitration awards in favor of insureds or claimants for the purpose of compelling them to accept settlements or compromises less than the amount awarded in arbitration;
(xii) Delaying the investigation or payment of claims by requiring an insured, claimant or the physician of either to submit a preliminary claim report and then requiring the subsequent submission of formal proof of loss forms, both of which submissions contain substantially the same information;
(xiii) Failing to promptly settle claims, where liability has become reasonably clear, under one (1) portion of the insurance policy coverage in order to influence settlements under other portions of the insurance policy coverage;
(xiv) Failing to promptly provide a reasonable explanation of the basis in the insurance policy in relation to the facts or applicable law for denial of a claim or for the offer of a compromise settlement;
(xv) Denying or failing to timely pay disability insurance claims for medically necessary services, procedures or supplies as required by W.S. 26-40-201;
(xvi) Failing to comply with the external review procedures required by W.S. 26-40-201; or
(xvii) Failing to pay a claim after an external review organization has declared such claim to be a benefit covered under the terms of the insurance policy.