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5 Written Questions

5 Matching Questions

  1. Although their liability is clear, B.B.S. Insurance Company routinely delays all claim payments for 90 days, and in doing so:
  2. The responsibility to regulate the insurance industry belongs to:
  3. Which of the following would be considered unfair or deceptive acts by an adjuster? A. Requesting that a first party claimant sign a release that extends beyond the subject matter which gave rise to the claim payment, B. Advising the claimant that their rights may be impaired if a form of release is not completed within a specified period of time unless for the purpose of notification of statute of limitations; C. Issuing a check or draft, in partial settlement of a loss or claim under specific coverage that contains language that releases the insurer or its insured from its total liability; D. All of the above.
  4. The unethical act of persuading a policyowner to drop a policy solely for the purpose of selling another policy is known as:
  5. An act of terrorism must be "certified" to be such an act by:
  1. a The Secretary of Treasury in concurrence with the Secretary of State, and the Attorney General of the U.S. certifies an act of terrorism.
  2. b Both federal & state government
  3. c TWISTING--making unfair or inaccurate comparisons to induce a person to drop their current coverage.
  4. d D. All of these are considered to be unfair claim practices.
  5. e They are guilty of an unfair claim settlement practice.

5 Multiple Choice Questions

  1. D. Declining to pay a claim that is not covered is not considered to be an unfair claims practice act. However, not responding promptly in the claim investigation is a violation.
  2. A. The act does not apply to federal crop insurance, personal insurance policies or life and health policies.
  3. B. Greeting cards do not constitute a form of rebating. They are not something of commercial value.
  4. Must satisfy the insurance department that you are TRUSTWORTHY.
  5. Call for a hearing. Usually, the ins. commissioner/director will first call for a hearing to review all sides of the alleged infraction.

5 True/False Questions

  1. An insurer that refuses to pay claims without conducting a reasonable investigation based upon all available information is guilty of:Unfair claim settlement practices. Conducting a prompt, reasonable and thorough investigation is a requirement. If not conducted in this manner, it is considered a violation of the unfair claim practices.


  2. An insurer that distributes a statement that misrepresents the benefits, advantages, conditions, or terms of any insurance policy would be guilty of:Misrepresentation and False Advertising.


  3. An incorporated insurance company with its capital divided into shares is the definition of:A stock company. A stock company is owned by its stockholders.


  4. In order to be certified as an act of terrorism under the Federal Terrorism Act, property and casualty losses must exceed _________ in the aggregate: A. $500,000 ; B. $1,000,000 ; C. $3,000,000 ; D. $5,000,000D. Life insurance losses are not covered by the act.


  5. No act will be certified by the Secretary as an act of terrorism under the Federal Terrorism Act if: A. The act is not committed as part of the course of war declared by Congress; B. The act is one of terrorism as defined by the Act; C. The losses that occur relate to commercial property risks; D. The losses that occur relate to life insurance.D. $5,000,000 in damages is the threshold for the act to apply.


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