Unfair Trade & Claims Settlement Practices

Unfair Claim Settlement Pratices

A company and/or agent must act in good faith in claim setllements and promptly pay its obligation to the insured in the event of a covered loss

Coercion, Boycott, Intimidation

A person may not enter into any agreement to commit any act of coercion, boycott, or intimidation resulting in unreasonable restraint of, or monopoly in, the business of insurance.

Fiduciary

A person or institution that has responsibility for the money, property or financial affairs of another.

Defamation

Is any false or malicious communication, written or oral, that injures another's reputation, fame or character

Rebating

Occurs if the buyer of an insurance policy receives any part of the agent's commission or anything of significant value as an inducement to purchase a policy.

Excessive Charges

Premium charges constitutes everything between and agent and insurer. Anything charged extra is an overcharge of premium and is unfair discrimination against the insured. The agent will be charged for engaging in an unfair trade practice and subject to the appropriate penalties of law governing that activity.

Twisiting

The unethical act of persuading a policyowner to drop a policy solely for the purpose of selling another policy without regard to possible disadvantage to the policyowner.

Unfair Trade Practices

Unfair methods of competition or unfair or deceptive acts or practices. The Insurance Commissioner is charged with the responsibility of protecting the public from unfair trade practices by licensees and insurance companies.