Which of the following is an example of an unfair trade practice? A. an agent making a material misrepresentation to the insured B. denying payment of a claim within a reasonable... Which of the following is an example of an unfair trade practice? A. an agent making a material misrepresentation to the insured B. denying payment of a claim within a reasonable time after proof of loss statements were provided C. replacing an old life insurance policy with a new one D. an agent writing less than 50% of their total sales from controlled business
Understand the Problem
The question asks us to identify an example of an unfair trade practice from the given options related to insurance. This requires understanding the ethics and regulations governing insurance practices.
Answer
An agent making a material misrepresentation to the insured is an example of an unfair trade practice.
The final answer is A. an agent making a material misrepresentation to the insured
Answer for screen readers
The final answer is A. an agent making a material misrepresentation to the insured
More Information
A material misrepresentation involves an agent providing false or misleading information that could significantly influence the insured's decision. This is an unfair practice because it undermines trust and can lead to financial harm for the insured.
Tips
When identifying unfair trade practices, focus on actions that involve dishonesty, deception, or a violation of good faith in insurance transactions.
Sources
- The 2024 Florida Statutes - Online Sunshine - leg.state.fl.us
- [PDF] 880-1 UNFAIR TRADE PRACTICES ACT Table of Contents Section ... - content.naic.org
- Chapter 626 Section 9541 - 2018 Florida Statutes - The Florida Senate - flsenate.gov
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