Unlawful and Unfair Practices

Which of the following BEST describes a "kickback"?

Any compensation given as a reward for favorable treatment in an insurance transaction or interaction

According to the Unfair Settlement Practices Act, an insurer must respond to a claim reasonably promptly after receiving it. Which of the following is NOT an acceptable way of responding to a claim?

Calling the claimant and leaving a voicemail message.

Which of the following is NOT an Unfair Claims Settlement Practice in the state of Florida?

Denying a claim when the insured has violated a policy condition

Which unfair claims settlement practice involves an adjuster making false statements about policy coverage in order to reduce the settlement?

Misrepresentation

What is an insurer required to do when it needs further information to process a claim?

Notify the claimant that additional information is needed

In which of the following situations is an insurer justified in waiting more than 90 days after receiving proof of loss forms to pay a claim?

The claimant has been unwilling to cooperate in the settlement process.

Which of the following is considered an Unfair Claims Settlement Practice in Florida?

Withholding payment on a legitimate, undisputed claim, or delaying payment beyond 90 days

After an insurance claim has been filed in Florida, how soon must the insurer respond to the claim?

Within 14 days

Which of the following insurers is NOT engaging in an Unfair Claims Settlement Practice?

XYZ Insurance Company owns its own auto repair shop and sends policyholders' cars there to be repaired.

Defamation" means:

making false or derogatory statements about other insurers or their representatives.

An insurer may not:

try to settle a claim using an application that was altered without the knowledge of the insured.

In Florida, an insurer may not:

wait 60 days before paying an undisputed PIP claim.