Which practice could involve settling a claim based on fraudulent information?

Unfair claim settlement practices typically involve situations where claims are resolved based on deceitful or misleading information provided by a claimant, leading to outcomes that are not justified. In this context, when a claim is settled despite the presence of fraudulent information, it undermines the integrity of the insurance process and can lead to financial losses for the insurer and other policyholders.

This practice may include encouraging or accepting claims that are based on false representations, whether they relate to the extent of damage, the amount of loss, or other critical factors. Such actions not only violate ethical standards but can also be illegal, causing significant implications both legally and financially for the individuals involved and for the insurance industry as a whole.

In contrast, the other choices refer to processes that generally focus on legitimate evaluations and adjustments. A standard claim review typically involves assessing the validity and accuracy of claims without the influence of deceit, while a complete policy revision and standard underwriting process relate to initially setting terms and evaluating risks in policies, rather than handling claims.