5 Written questions
5 Matching questions
- The unethical act of persuading a policyowner to drop a policy solely for the purpose of selling another policy is known as:
- The responsibility of the federal government in regulating the insurance industry is limited to:
- 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.
- An insurance company that is formed and domiciled under the laws of a particular state is an example of a(n):
- The responsibility to regulate the insurance industry belongs to:
- a D. All of these are considered to be unfair claim practices.
- b TWISTING--making unfair or inaccurate comparisons to induce a person to drop their current coverage.
- c Fair labor standards and anti-trust matters
- d Both federal & state government
- e Domestic Insurer
5 Multiple choice questions
- Call for a hearing. Usually, the ins. commissioner/director will first call for a hearing to review all sides of the alleged infraction.
- B. Greeting cards do not constitute a form of rebating. They are not something of commercial value.
- The Secretary of Treasury in concurrence with the Secretary of State, and the Attorney General of the U.S. certifies an act of terrorism.
- D. Life insurance losses are not covered by the act.
- A. Acts of riot and civil commotion are not covered under this at. These perils are covered under most property insurance contracts.
5 True/False questions
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: → Both federal & state government
Should an agent or adjuster have a change of address, the obligation to notify the state insurance dept. lies with: → The licensee. The person who holds the license is responsible to report the change of address to the state insurance dept.
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.
None of the following can be covered by the Federal Terrorism Act Insurance Program except: A. Most commercial property and casualty risks; B. Federal crop insurance; C. Personal insurance policies; D. Health and life insurance policies. → A. Acts of riot and civil commotion are not covered under this at. These perils are covered under most property insurance contracts.