Which of the following practices in insurance is prohibited in Florida?

Failing to provide timely claim settlements is prohibited in Florida as it violates the ethical standards and regulations set forth in the state's insurance laws. Insurers are required to act promptly and fairly when processing and settling claims to protect consumers' rights. Delays in claims settlement can result in financial hardships for policyholders, which is why regulatory bodies emphasize the importance of timely communication and resolution.

In Florida, there are specific statutes that outline the responsibilities of insurers regarding claims handling. For instance, insurers must acknowledge receipt of a claim and respond within a defined timeframe. Failure to comply with these standards not only breaches the obligations owed to the policyholder but can also lead to disciplinary actions against the insurer, including fines or other penalties.

The other practices listed are either permissible within certain regulatory frameworks or depend on specific circumstances. For example, providing discounts based on claims history may be allowed as it can encourage safe behaviors among policyholders. Settling claims without client approval could occur under specific terms outlined in the policy, while providing policy updates is generally considered a best practice for maintaining transparency and communication with policyholders.