5 Written questions
5 Matching questions
- An incorporated insurance company with its capital divided into shares is the definition of:
- 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.
- Although their liability is clear, B.B.S. Insurance Company routinely delays all claim payments for 90 days, and in doing so:
- An insurer that refuses to pay claims without conducting a reasonable investigation based upon all available information is guilty of:
- 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
- a They are guilty of an unfair claim settlement practice.
- b B. Greeting cards do not constitute a form of rebating. They are not something of commercial value.
- c 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.
- d A stock company. A stock company is owned by its stockholders.
- e D. $5,000,000 in damages is the threshold for the act to apply.
5 Multiple choice questions
- D. Life insurance losses are not covered by the act.
- 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. All of these are considered to be unfair claim practices.
- The Secretary of Treasury in concurrence with the Secretary of State, and the Attorney General of the U.S. certifies an act of terrorism.
- TWISTING--making unfair or inaccurate comparisons to induce a person to drop their current coverage.
5 True/False questions
The responsibility of the federal government in regulating the insurance industry is limited to: → Fair labor standards and anti-trust matters
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.
An insurer that distributes a statement that misrepresents the benefits, advantages, conditions, or terms of any insurance policy would be 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.
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.
Which of the following would be considered an Unfair Trade Practice? Twisting? Rebating? Coercion? or All? → D. All of these are considered to be unfair claim practices.