Which regulatory body oversees an insurer's claim settlement practices?

The regulatory body that oversees an insurer's claim settlement practices is the state insurance departments. These departments are responsible for ensuring that insurance companies operate in a fair and lawful manner. They monitor compliance with state laws and regulations, which includes evaluating how insurers handle claims. The oversight is designed to protect consumers, ensuring that claims are processed in a timely manner and that the insurers fulfill their obligations under the policy terms. By regulating these practices, state insurance departments help maintain the integrity of the insurance market and promote public trust in insurance companies.

In contrast, the other organizations mentioned have different mandates. The Federal Trade Commission primarily focuses on protecting consumers and promoting competition by regulating business practices, but it does not directly oversee insurance claims. The Insurance Information Institute is an organization that provides information and education about the insurance industry rather than enforcing regulations. The Department of Health and Human Services is responsible for public health and welfare programs, but it does not have oversight of insurance claim settlements except in specific circumstances related to health insurance policies.