Which of the following can lead to legal action against an insurer?

Refusing to insure based on improper criteria can indeed lead to legal action against an insurer. This practice could be viewed as discriminatory or in violation of fair underwriting standards mandated by law. For example, if an insurer denies coverage based on an applicant's race, gender, or other protected characteristics, this would constitute a violation of anti-discrimination laws. Insurers are required to follow ethical guidelines and legal regulations that prohibit unfair practices in determining eligibility for policies. Therefore, such actions could result in lawsuits or regulatory penalties as insured individuals seek protection from discriminatory practices.

On the other hand, immediate policy adjustments, paying claims promptly, and offering discounts for loyal clients are generally considered positive practices that fulfill the obligations of an insurer and improve customer satisfaction. Immediate policy adjustments typically align with the needs of policyholders and regulations, paying claims promptly is essential for maintaining trust and compliance, and offering discounts fosters customer loyalty and is a common business practice that supports retention without legal repercussions.