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Time for Providing Insured with Coverage Position/ Reservation of Rights
• Failing to affirm or deny coverage, reserving any appro- priate defenses, within a reasonable time after having completed its investigation related to a claim” consti- tutes an unfair claim settlement practice by an insurer. Me. Rev. Stat. Ann. tit. 24-A, § 2164-D(3)(B), (C), and (K) (2006).
• No case law interprets and no regulation governs “rea- sonable time.”
Thus, a good practice is to provide the insured with a cover- age explanation within 30 days after the insurer’s acknowl- edgement of the claim.
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