1. All claims must be promptly reported to the insurer or its designated claim representative, and the insurer shall maintain adequate files on all reported claims. All claims must be settled as soon as practicable and in accordance with the terms of the insurance contract.
2. All claims must be paid by draft drawn upon the insurer, by electronic funds transfer or by check of the insurer to the order of:
(a) The claimant to whom payment of the claim is due pursuant to the provisions of the policy; or
(b) Any other person designated by the claimant to whom payment is due.