How can an insurance company ensure fair treatment of its clients?

The Made Whole Doctrine is a legal principle that ensures a policyholder is fully compensated for their losses before an insurance company can seek reimbursement from a third party responsible for those losses. This doctrine emphasizes fair treatment by guaranteeing that the insured is "made whole" first, meaning they receive the complete compensation needed to cover their damages.

When an insurance company adheres to the Made Whole Doctrine, it demonstrates its commitment to supporting clients' rights and financial interests. By ensuring that clients receive full restitution for their losses, the company fosters trust and maintains integrity in its operations, which are essential facets of fair treatment.

In contrast, the other options do not promote the fair treatment of clients. Selectively investigating claims can lead to bias and uneven application of policy terms. Prioritizing profits over claims resolution typically results in clients receiving inadequate support or compensation. Additionally, waiving all deductibles for policyholders could create unsustainable financial practices and potentially lead to higher overall costs for the company, ultimately undermining fair treatment in the long run.