What is the practice when a company attempts to settle a claim based on information altered without the insured’s consent?

The practice of settling a claim based on information that has been altered without the insured's consent is best described as unfair claim settlement. This reflects a breach of ethical standards and legal obligations that insurers are expected to uphold when processing claims. Insurers are required to act fairly and transparently, ensuring that all information used in evaluating claims is accurate and not manipulated. Failing to obtain the insured's consent before altering information undermines the trust inherent in the insurance contract and violates the principles of fair dealing.

In contrast, the other options do not appropriately capture the ethical breach associated with altering information. Fraudulent settlement would imply a deliberate attempt to deceive the insured or evade responsibility, which is broader and more overt than the specific act of altering information. Efficient claim processing refers to the timely management of claims without any ethical breaches, and standard claims negotiation involves discussions around claims that are done transparently and in good faith, rather than through manipulation of information.