A claimant shall report a claim promptly to the insurer or its designated claim representative. The insurer shall maintain adequate claim files. The insurer shall settle a claim as soon as possible and in accordance with the terms of the insurance contract. The insurer shall pay a claim by a draft drawn on the insurer or by a check of the insurer to the order of: the claimant to whom payment of the claim is due under the policy; or a person to whom the claimant directs payment be made. A plan or arrangement may not be used if it authorizes a person other than the insurer or its designated claim representative to settle or adjust claims. The creditor may not be designated as the claim representative of the insurer to adjust a claim. Notwithstanding paragraph (2) of this subsection, by arrangement with the group insurer, a group policyholder may draw a draft or check in payment of a claim due to the group policyholder subject to audit and review by the group insurer.