The responsibility of the federal government in regulating the insurance industry is limited to:
An insurer that distributes a statement that misrepresents the benefits, advantages, conditions, or terms of any insurance policy would be guilty of:
An insurance company that is formed and domiciled under the laws of a particular state is an example of a(n):
Which of the following would be considered an Unfair Trade Practice? Twisting? Rebating? Coercion? or All?
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.
aD. 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.
bFair labor standards and anti-trust matters
dMisrepresentation and False Advertising.
eAll of these are considered to be a violation of the unfair trade practices.
5 Multiple Choice Questions
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. Acts of riot and civil commotion are not covered under this at. These perils are covered under most property insurance contracts.
D. Life insurance losses are not covered by the act.
TWISTING--making unfair or inaccurate comparisons to induce a person to drop their current coverage.
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.
5 True/False Questions
An incorporated insurance company with its capital divided into shares is the definition of: → A stock company. A stock company is owned by its stockholders.
The department of insurance has been advised that an agent is guilty of an insurance code violation. The commissioner/department will: → Call for a hearing. Usually, the ins. commissioner/director will first call for a hearing to review all sides of the alleged infraction.
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. → B. Greeting cards do not constitute a form of rebating. They are not something of commercial value.
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.
The responsibility to regulate the insurance industry belongs to: → Both federal & state government