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 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
- 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.
- Which of the following is a requirement for obtaining an agent's or adjuster's license?
- a D. $5,000,000 in damages is the threshold for the act to apply.
- b 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.
- 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 Must satisfy the insurance department that you are TRUSTWORTHY.
- e D. All of these are considered to be unfair claim practices.
5 Multiple choice questions
- All of these are considered to be a violation of the unfair trade 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.
- A. Acts of riot and civil commotion are not covered under this at. These perils are covered under most property insurance contracts.
- They are guilty of an unfair claim settlement practice.
- Call for a hearing. Usually, the ins. commissioner/director will first call for a hearing to review all sides of the alleged infraction.
5 True/False questions
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 act does not apply to federal crop insurance, personal insurance policies or life and health policies.
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.
The responsibility to regulate the insurance industry belongs to: → Both federal & state government
The unethical act of persuading a policyowner to drop a policy solely for the purpose of selling another policy is known as: → TWISTING--making unfair or inaccurate comparisons to induce a person to drop their current coverage.
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.