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.
- An act of terrorism must be "certified" to be such an act by:
- 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.
- The responsibility of the federal government in regulating the insurance industry is limited to:
- Although their liability is clear, B.B.S. Insurance Company routinely delays all claim payments for 90 days, and in doing so:
- a Fair labor standards and anti-trust matters
- b The Secretary of Treasury in concurrence with the Secretary of State, and the Attorney General of the U.S. certifies an act of terrorism.
- c 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.
- d They are guilty of an unfair claim settlement practice.
- e B. Greeting cards do not constitute a form of rebating. They are not something of commercial value.
5 Multiple choice questions
- Must satisfy the insurance department that you are TRUSTWORTHY.
- TWISTING--making unfair or inaccurate comparisons to induce a person to drop their current coverage.
- D. $5,000,000 in damages is the threshold for the act to apply.
- Misrepresentation and False Advertising.
- A. The act does not apply to federal crop insurance, personal insurance policies or life and health policies.
5 True/False questions
An insurer that refuses to pay claims without conducting a reasonable investigation based upon all available information is guilty of: → Misrepresentation and False Advertising.
No act will be certified by the Secretary as an act of terrorism under the Federal Terrorism Act if: A. The act is not committed as part of the course of war declared by Congress; B. The act is one of terrorism as defined by the Act; C. The losses that occur relate to commercial property risks; D. The losses that occur relate to life insurance. → D. $5,000,000 in damages is the threshold for the act to apply.
The department of insurance has been advised that an agent is guilty of an insurance code violation. The commissioner/department will: → Both federal & state government
An insurance company that is formed and domiciled under the laws of a particular state is an example of a(n): → A stock company. A stock company is owned by its stockholders.
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 these are considered to be a violation of the unfair trade practices.