Property & Casualty Insurance

Misrepresenting pertinent policy provisions relating to coverage after loss is

An unfair claims settlement

Refusing to renew a policy because of someone's sex or marital status and discriminating, is an example of

Unfair discrimination. They cannot alter premium, rates or any terms of the contract due to a discrimination (besides in life insurance). This is part of an unfair trade practice and is not allowed.

All of the following are unfair claims settlement practices EXCEPT

An attempt to settle a claim by arbitration.

True or False: An insurer can pay commission to a person who is not licensed.

False. No insurer shall pay a commission to a person who is not licensed.

What happens to an agent's appointments if their license is surrendered, revoked or suspended?

ALL appointments will be void.

Making a pamphlet or sign that says you have the best rates in town is called...

Defamation. This includes publishing, printing, distributing, etc any statement that is defamatory of the insurance company and contains false and malicious statements that injure its reputation.

False advertising of an insurance policy is considered

Misrepresentation. This is part of an unfair trade practice and is not allowed.

Twisting means

Persuading an insured,to insured' detriment,to switch policies. This is part of an unfair trade practice and is not allowed.

Splitting the commission with the buyer on a sale of insurance is known as

Rebating. This is part of an unfair trade practice and is not allowed.

All of the following claims settlement practices could initiate a cease and desist order EXCEPT

Refusing to pay a claim without conducting a reasonable investigation of all available info where material acts are in dispute

Taking someone out for a meal in hopes of them considering an insurance policy or quote is called...

Illegal inducement. This is part of an unfair trade practice and is not allowed.

In what situation can an agent pay commission to another agent not from the same company?

The agent must be licensed for that line of business.

Who is responsible for notifying the Superintendent if an agent's contract or business relationship is terminated by the insurance company?

The insurance company must notify the Superintendent within 30 days of the termination.

No agent shall represent that they have the authority to represent an insurer until..

The insurer notifies the Superintendent that the person is competent, financially responsible and suitable to represent the insurer. The insurer must do this within 30 days of the agent's contract. A fee of $15 is required.

Placing an advertisement sticker on your car that gives misrepresentation about your insurance company is called....

False Advertisement. This is part of an unfair trade practice and is not allowed.

Giving an estimate or illustration of the terms of the policy, benefits, etc. is an example of what?

Misrepresentation. This is part of an unfair trade practice and is not allowed.

All of the following are unfair claims settlement practices EXCEPT

Refusing to pay persons bringing false or fraudulent claims.

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?

The Superintendent may suspend, revoke, or refuse to issue or renew their license.

Who reports a producers termination of appointment to the commissioner

The insurer

Comparing what your company has to what another insurance company has without all the information and only having an intent to switch someone over to your company is called...

Twisting. This is part of an unfair trade practice and is not allowed.

Misrepresenting a policy for the purpose of including a policy holder to change or replace an existing policy is known as

Twisting. This is part of an unfair trade practice and is not allowed.