5 Written questions
5 Matching questions
- The department of insurance has been advised that an agent is guilty of an insurance code violation. The commissioner/department will:
- An insurer that refuses to pay claims without conducting a reasonable investigation based upon all available information is guilty of:
- 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.
- Which of the following would be considered an Unfair Trade Practice? Twisting? Rebating? Coercion? or All?
- The responsibility to regulate the insurance industry belongs to:
- a Call for a hearing. Usually, the ins. commissioner/director will first call for a hearing to review all sides of the alleged infraction.
- b All of these are considered to be a violation of the unfair trade practices.
- c Both federal & state government
- d 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.
- e 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.
5 Multiple choice questions
- The licensee. The person who holds the license is responsible to report the change of address to the state insurance dept.
- A. The act does not apply to federal crop insurance, personal insurance policies or life and health policies.
- D. All of these are considered to be unfair claim practices.
- A stock company. A stock company is owned by its stockholders.
- D. $5,000,000 in damages is the threshold for the act to apply.
5 True/False questions
Although their liability is clear, B.B.S. Insurance Company routinely delays all claim payments for 90 days, and in doing so: → Both federal & state government
The responsibility of the federal government in regulating the insurance industry is limited to: → Both federal & state government
Which of the following is a requirement for obtaining an agent's or adjuster's license? → D. All of these are considered to be unfair claim practices.
An act of terrorism must be "certified" to be such an act by: → The Secretary of Treasury in concurrence with the Secretary of State, and the Attorney General of the U.S. certifies an act of terrorism.
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.