5 Written questions
5 Matching questions
- An act of terrorism must be "certified" to be such an act by:
- Should an agent or adjuster have a change of address, the obligation to notify the state insurance dept. lies with:
- The responsibility of the federal government in regulating the insurance industry is limited to:
- An incorporated insurance company with its capital divided into shares is the definition of:
- 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 The licensee. The person who holds the license is responsible to report the change of address to the state insurance dept.
- 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 A stock company. A stock company is owned by its stockholders.
- d Fair labor standards and anti-trust matters
- e A. The act does not apply to federal crop insurance, personal insurance policies or life and health policies.
5 Multiple choice questions
- Misrepresentation and False Advertising.
- They are guilty of an unfair claim settlement practice.
- Both federal & state government
- D. Life insurance losses are not covered by the act.
- D. $5,000,000 in damages is the threshold for the act to apply.
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.
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.
The unethical act of persuading a policyowner to drop a policy solely for the purpose of selling another policy is known as: → 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 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.
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.