An insurance company that ignores all letters and phone calls from insureds with claims is demonstrating what behavior?

An insurance company that neglects communication with insureds regarding their claims is engaging in behaviors that are considered unfair claim settlement practices. This means they are failing to meet the standard of responding timely and effectively to claims made by policyholders.

In the context of insurance regulations, companies are obligated to acknowledge claims, provide timely responses, and make good-faith efforts to settle claims when liability is clear. By ignoring letters and phone calls, the insurance company is not only disregarding these obligations but also potentially putting the interests of the insureds and the integrity of the insurance process at risk. Such conduct can undermine trust in the insurance system and can ultimately lead to regulatory scrutiny and penalties for the company.

The other options focus on various aspects of cost-saving or administrative efficiency, but they do not address the core issue of failing to uphold ethical standards and statutory requirements in handling claims, which is why they are not the best characterization of the behavior described.