5 Written questions
5 Matching questions
- Should an agent or adjuster have a change of address, the obligation to notify the state insurance dept. lies with:
- An insurance company that is formed and domiciled under the laws of a particular state is an example of a(n):
- An insurer that distributes a statement that misrepresents the benefits, advantages, conditions, or terms of any insurance policy would be 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
- An insurer that refuses to pay claims without conducting a reasonable investigation based upon all available information is guilty of:
- 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.
- b Domestic Insurer
- c Misrepresentation and False Advertising.
- d The licensee. The person who holds the license is responsible to report the change of address to the state insurance dept.
- e D. $5,000,000 in damages is the threshold for the act to apply.
5 Multiple choice questions
- A. Acts of riot and civil commotion are not covered under this at. These perils are covered under most property insurance contracts.
- The Secretary of Treasury in concurrence with the Secretary of State, and the Attorney General of the U.S. certifies an act of terrorism.
- Call for a hearing. Usually, the ins. commissioner/director will first call for a hearing to review all sides of the alleged infraction.
- A. The act does not apply to federal crop insurance, personal insurance policies or life and health policies.
- All of these are considered to be a violation of the unfair trade practices.
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
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.
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.
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
An incorporated insurance company with its capital divided into shares is the definition of: → Domestic Insurer