5 Written questions
5 Matching questions
- An incorporated insurance company with its capital divided into shares is the definition of:
- The responsibility of the federal government in regulating the insurance industry is limited to:
- 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.
- 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.
- Should an agent or adjuster have a change of address, the obligation to notify the state insurance dept. lies with:
- a A stock company. A stock company is owned by its stockholders.
- b D. All of these are considered to be unfair claim practices.
- c Fair labor standards and anti-trust matters
- d B. Greeting cards do not constitute a form of rebating. They are not something of commercial value.
- e The licensee. The person who holds the license is responsible to report the change of address to the state insurance dept.
5 Multiple choice questions
- 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.
- D. Life insurance losses are not covered by the act.
- Both federal & state government
- The Secretary of Treasury in concurrence with the Secretary of State, and the Attorney General of the U.S. certifies an act of terrorism.
- A. The act does not apply to federal crop insurance, personal insurance policies or life and health policies.
5 True/False questions
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.
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 unethical act of persuading a policyowner to drop a policy solely for the purpose of selling another policy is known as: → TWISTING--making unfair or inaccurate comparisons to induce a person to drop their current coverage.
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.
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. → All of these are considered to be a violation of the unfair trade practices.