Podcast
Questions and Answers
All of the following are unfair claims settlement practices EXCEPT:
All of the following are unfair claims settlement practices EXCEPT:
- An attempt to settle a claim by arbitration (correct)
- Refusing to pay a claim without conducting a reasonable investigation
- Refusing to pay persons bringing false or fraudulent claims
- Misrepresenting policy provisions
Splitting the commission with the buyer on a sale of insurance is known as?
Splitting the commission with the buyer on a sale of insurance is known as?
rebating
False advertising of an insurance policy is considered?
False advertising of an insurance policy is considered?
misrepresentation
Misrepresenting a policy for the purpose of inducing a policyholder to change or replace an existing policy is known as?
Misrepresenting a policy for the purpose of inducing a policyholder to change or replace an existing policy is known as?
All of the following claims settlement practices could initiate a cease and desist order EXCEPT:
All of the following claims settlement practices could initiate a cease and desist order EXCEPT:
Who reports a producer's termination of appointment to the commissioner?
Who reports a producer's termination of appointment to the commissioner?
Twisting means?
Twisting means?
Misrepresenting pertinent policy provisions relating to coverage after loss is?
Misrepresenting pertinent policy provisions relating to coverage after loss is?
In what situation can an agent pay commission to another agent not from the same company?
In what situation can an agent pay commission to another agent not from the same company?
What will happen to an agent if they are caught forging or causing the forgery of an application for insurance or any document related to an insurance transaction?
What will happen to an agent if they are caught forging or causing the forgery of an application for insurance or any document related to an insurance transaction?
No agent shall represent that they have the authority to represent an insurer until...
No agent shall represent that they have the authority to represent an insurer until...
An insurer can pay commission to a person who is not licensed.
An insurer can pay commission to a person who is not licensed.
What happens to an agent's appointments if their license is surrendered, revoked, or suspended?
What happens to an agent's appointments if their license is surrendered, revoked, or suspended?
Who is responsible for notifying the Superintendent if an agent's contract or business relationship is terminated by the insurance company?
Who is responsible for notifying the Superintendent if an agent's contract or business relationship is terminated by the insurance company?
Placing an advertisement sticker on your car that gives misrepresentation about your insurance company is called?
Placing an advertisement sticker on your car that gives misrepresentation about your insurance company is called?
Giving an estimate or illustration of the terms of the policy, benefits, etc., is an example of what?
Giving an estimate or illustration of the terms of the policy, benefits, etc., is an example of what?
Comparing what your company has to what another insurance company has without all the information and only having intent to switch someone over to your company is called?
Comparing what your company has to what another insurance company has without all the information and only having intent to switch someone over to your company is called?
Making a pamphlet or sign that says you have the best rates in town is called?
Making a pamphlet or sign that says you have the best rates in town is called?
Refusing to renew a policy because of someone's sex or marital status is an example of?
Refusing to renew a policy because of someone's sex or marital status is an example of?
Taking someone out for a meal in hopes of them considering an insurance policy or quote is called?
Taking someone out for a meal in hopes of them considering an insurance policy or quote is called?
Flashcards are hidden until you start studying
Study Notes
Unfair Claims Settlement Practices
- Refusing to pay false or fraudulent claims is not an unfair practice.
- Attempting to settle claims through arbitration is acceptable and does not fall under unfair practices.
Unfair Trade Practices
- Rebating is the act of splitting commissions with buyers and is prohibited.
- Misrepresentation refers to false advertising of insurance policies, which is against regulations.
- Twisting involves misrepresenting policies to persuade clients to switch, considered a serious violation.
Claims Settlement Violations
- Initiating a cease and desist order can occur if claims are denied without a reasonable investigation.
- Misrepresenting policy provisions after a loss falls under unfair claims settlement practices.
Reporting and Licensing
- Insurers are responsible for reporting an agent's termination of appointment to the commissioner.
- An agent may pay commissions to another agent if both are licensed for that line of business.
Consequences of Misconduct
- Forging documents related to insurance transactions can lead to suspension or revocation of an agent’s license.
- An agent must wait for the insurer to confirm their authority to represent them before claiming to do so.
Licensing Regulations
- Insurers cannot pay commissions to unlicensed individuals, ensuring compliance with licensing laws.
- All of an agent's appointments become void if their license is surrendered, revoked, or suspended.
Notification Requirements
- Insurers must notify the Superintendent of an agent's contract termination within a 30-day period.
False Advertising and Defamation
- Placing false advertisement stickers on vehicles is considered misrepresentation.
- Making claims of having the best rates without substantiation can lead to defamation charges.
Discrimination in Insurance Practices
- Refusing policy renewals based on sex or marital status is deemed unfair discrimination, violating legal standards.
Illegal Inducement Practices
- Offering meals to prospective clients to influence their insurance decisions is classified as illegal inducement, prohibited under trade practices.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
