5 Written questions
5 Matching questions
- 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 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.
- 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.
- The unethical act of persuading a policyowner to drop a policy solely for the purpose of selling another policy is known as:
- An insurance company that is formed and domiciled under the laws of a particular state is an example of a(n):
- a A. Acts of riot and civil commotion are not covered under this at. These perils are covered under most property insurance contracts.
- b 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.
- c TWISTING--making unfair or inaccurate comparisons to induce a person to drop their current coverage.
- d Domestic Insurer
- e D. All of these are considered to be unfair claim practices.
5 Multiple choice questions
- A stock company. A stock company is owned by its stockholders.
- D. Life insurance losses are not covered by the act.
- Call for a hearing. Usually, the ins. commissioner/director will first call for a hearing to review all sides of the alleged infraction.
- Misrepresentation and False Advertising.
- Fair labor standards and anti-trust matters
5 True/False questions
Should an agent or adjuster have a change of address, the obligation to notify the state insurance dept. lies with: → Call for a hearing. Usually, the ins. commissioner/director will first call for a hearing to review all sides of the alleged infraction.
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. $5,000,000 → D. Life insurance losses are not covered by the act.
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.
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 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.