The department of insurance has been advised that an agent is guilty of an insurance code violation. The commissioner/department will:
The responsibility to regulate the insurance industry belongs to:
Which of the following would be considered an Unfair Trade Practice? Twisting? Rebating? Coercion? or All?
The unethical act of persuading a policyowner to drop a policy solely for the purpose of selling another policy is known as:
An insurer that refuses to pay claims without conducting a reasonable investigation based upon all available information is guilty of:
aCall for a hearing. Usually, the ins. commissioner/director will first call for a hearing to review all sides of the alleged infraction.
bTWISTING--making unfair or inaccurate comparisons to induce a person to drop their current coverage.
cBoth federal & state government
dAll of these are considered to be a violation of the unfair trade practices.
eUnfair 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.
5 Multiple Choice Questions
B. Greeting cards do not constitute a form of rebating. They are not something of commercial value.
D. Life insurance losses are not covered by the act.
Must satisfy the insurance department that you are TRUSTWORTHY.
D. $5,000,000 in damages is the threshold for the act to apply.
5 True/False 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. → 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.
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.
An incorporated insurance company with its capital divided into shares is the definition of: → The Secretary of Treasury in concurrence with the Secretary of State, and the Attorney General of the U.S. certifies an act of terrorism.
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. → B. Greeting cards do not constitute a form of rebating. They are not something of commercial value.
The responsibility of the federal government in regulating the insurance industry is limited to: → Fair labor standards and anti-trust matters