Which of the following is considered an unfair claims settlement practice?

Refusing to explain a claim denial qualifies as an unfair claims settlement practice because it undermines the principle of transparency and communication that is crucial in the claims process. Insurers have an obligation to provide policyholders with clear reasons for their claim decisions, particularly when a claim is denied. This practice ensures that the policyholder understands the rationale behind the decision and can address any misunderstandings or appeal if necessary. By withholding explanations, an insurer may not only create confusion but may also erode trust and goodwill, which are essential in the relationship between the insurer and the insured.

In the context of the other options, paying claims without investigation, offering higher settlements than necessary, and fulfilling claims promptly are generally practices that can actually contribute to a fair and efficient claims process, even if they may seem questionable in certain scenarios. Each of these practices can be viewed in light of their impact on consumer trust and the overall integrity of the insurance marketplace, making the refusal to explain a claim denial particularly problematic.