All of the following are considered acts of rebating except: A. An agent provides an all-expenses paid cruise to a client and his wife in exchange for writing the coverage on his national chain of restaurants; B. An agent sends holiday greeting cards to all the clients on his mailing list; C. An adjuster receives a monthly check from an auto body repair shop for recommending the repair shop to clients who have a claim; D. All of these situations are considered acts of rebating.
All of the following events are considered acts of terrorism except: A. Acts of riot and civil commotion; B. Acts considered dangerous to human life, property or infrastructure; C. Acts resulting in damage within or outside the United States; D. Acts committed by an individual or individuals acting on behalf of any foreign person or foreign interest.
An act of terrorism must be "certified" to be such an act by:
The unethical act of persuading a policyowner to drop a policy solely for the purpose of selling another policy is known as:
Which of the following is NOT considered to be an unfair claims practice? A. Misrepresenting pertinent facts or uninsured policy provisions relating to coverages at issue? B. Refusing to pay claims without conducting a reasonable investigation based upon all available information, C. Attempting to settle claims on the basis of an application that was altered without notice to or the knowledge of the insured, D. Failing to honor an uncovered claim.
aB. Greeting cards do not constitute a form of rebating. They are not something of commercial value.
bThe Secretary of Treasury in concurrence with the Secretary of State, and the Attorney General of the U.S. certifies an act of terrorism.
cTWISTING--making unfair or inaccurate comparisons to induce a person to drop their current coverage.
dA. Acts of riot and civil commotion are not covered under this at. These perils are covered under most property insurance contracts.
eD. 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.
5 Multiple Choice Questions
Call for a hearing. Usually, the ins. commissioner/director will first call for a hearing to review all sides of the alleged infraction.
Fair labor standards and anti-trust matters
A. The act does not apply to federal crop insurance, personal insurance policies or life and health policies.
The licensee. The person who holds the license is responsible to report the change of address to the state insurance dept.
Both federal & state government
5 True/False Questions
Which of the following would be considered an Unfair Trade Practice? Twisting? Rebating? Coercion? or All? → All of these are considered to be a violation of the unfair trade practices.
An insurance company that is formed and domiciled under the laws of a particular state is an example of a(n): → D. $5,000,000 in damages is the threshold for the act to apply.
Although their liability is clear, B.B.S. Insurance Company routinely delays all claim payments for 90 days, and in doing so: → They are guilty of an unfair claim settlement practice.
Which of the following is a requirement for obtaining an agent's or adjuster's license? → Must satisfy the insurance department that you are TRUSTWORTHY.
An insurer that refuses to pay claims without conducting a reasonable investigation based upon all available information is guilty of: → Misrepresentation and False Advertising.