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5 Written questions

5 Matching questions

  1. Should an agent or adjuster have a change of address, the obligation to notify the state insurance dept. lies with:
  2. An insurance company that is formed and domiciled under the laws of a particular state is an example of a(n):
  3. An insurer that distributes a statement that misrepresents the benefits, advantages, conditions, or terms of any insurance policy would be guilty of:
  4. 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
  5. An insurer that refuses to pay claims without conducting a reasonable investigation based upon all available information is guilty of:
  1. a 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.
  2. b Domestic Insurer
  3. c Misrepresentation and False Advertising.
  4. d The licensee. The person who holds the license is responsible to report the change of address to the state insurance dept.
  5. e D. $5,000,000 in damages is the threshold for the act to apply.

5 Multiple choice questions

  1. A. Acts of riot and civil commotion are not covered under this at. These perils are covered under most property insurance contracts.
  2. The Secretary of Treasury in concurrence with the Secretary of State, and the Attorney General of the U.S. certifies an act of terrorism.
  3. Call for a hearing. Usually, the ins. commissioner/director will first call for a hearing to review all sides of the alleged infraction.
  4. A. The act does not apply to federal crop insurance, personal insurance policies or life and health policies.
  5. All of these are considered to be a violation of the unfair trade practices.

5 True/False questions

  1. The responsibility of the federal government in regulating the insurance industry is limited to:Fair labor standards and anti-trust matters


  2. 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.D. All of these are considered to be unfair claim practices.


  3. 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.


  4. 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


  5. An incorporated insurance company with its capital divided into shares is the definition of:Domestic Insurer