Regulation of Insurance Producers and Insurers

True/False: Fire insurance companies in Idaho are required to report to the state fire marshal within 14 days after settling fire losses of $1,000 or more, on property within the state.

False- Seven days.

True/False: Twisting is allowed in idaho.

False- Twisting is prohibited.

True/False: In Idaho you can file with any supervisory or public official or make or place before the public any false statement of the financial condition of an insurer with the intent to deceive.

False-It is prohibited to file with any supervisory or public official or make or place before the public any false statement of the financial condition of an insurer with the intent to deceive.

True/False: giving a rebate of premiums or comissions is a form of gifting.

False: Giving a rebate of premiums or commissions is rebating.

True/False: Rebating is allowed in Idaho.

False: Rebating is prohibited in Idaho. Rebating is illegal.

Rebating

Giving stocks, bonds, or other securities, interest, dividends or profits and anything else of value not specified in the insurance contract is an example of...

Unfair Method of Competition/ An Unfair Deceptive Act or Practice

In Idaho,. committing acts or omissions intentionally or with such frequency as to indicate a general business practice is considered...

Twisting

Includes failing to disclose all reasonably material facts under the circumstances for the same purpose.

Fraud

Deception or artifice used to cheat or intentionally mislead. As a loss exposure, certain types can be insured by a commercial crime insurance policy.

Misrepresentation

A false or misleading statement that, if intentional and material, can allow the insurer to void the insurance contract.

Idaho Insurance Guaranty Association

A group that pays covered claims existing prior to an order of liquidation by the Director.

Upon conviction of violation of ID Insurance code fines are:

Additional fine of not more than $1000; imprisonment in county jail no more than 6 months; or both.

The following practices are considered unfair discrimination and are prohibited except: a. individuals of same class and equal expectation of life in rates charged for life insurance or life annuity. b. individuals of the same class and essentially the same hazard in the amount of premium, policy fees, or rates for disability insurance policy. c. paying bonuses to policyholders or otherwise abating their premiums from surplus accumulated and nonparticipating insurance. d. genetic test or private genetic information in issuing coverage or fixing rates or in the terms or conditions of any disability insurance or health benefit plan.

C. Paying bonuses to policyholders or otherwise abating their premiums from surplus accumulated and nonparticipating insurance is permitted in Idaho.

The following are examples of Unfair Method of Competition except: a. Misrepresenting pertinent facts or policy provisions relating to coverage at issue. b. Failing to acknowledge and act reasonably promptly to communications on claims. c. Submitting a claim. d. Failing to adopt and implement reasonable standards for the prompt investigation of claims.

C. Submitting a claim.

The following are examples of Unfair Method of Competition except: a. Failing to affirm or deny coverage of claims within a reasonable time after proof of loss statements have been completed. b. Not attempting in good faith to effectuate prompt, fair and equitable settlements of claims in which liability has become reasonably clear. c. Compelling insureds to institute suits to recover amounts due under an insurance policy by offering substantially less than the amounts ultimately recovered in actions brought by them. d. All the above.

D. All of the above.

Which of the following are permitted and not considered discrimination or rebating: a. Life insurance policies and annuities. b. Life insurance policies based on the debit plan. c. Life or disability policies on a salary savings, bank draft, p reauthorized check or payroll deduction. D. All of the above.

D. All of the above.

True/False: A minor 16 years old may contract for insurance on his own life, body, health, property, liabilities and on a person in whom the minor has an insurable interest.

False- A Minor 15 years old.

True/False: Attempting to settle a claim for more than the amount to which a reasonable person would have believed the insured or beneficiary was entitled by reference to written/printed advertising material accompanying or made part of an application is an example of Unfair Method of Competition.

False- Attempting to settle a claim for less than the amount to which a reasonable person would have believed the insured or beneficiary was entitled by reference to written/printed advertising material accompanying or made part of an application is an example of Unfair Method of Competition.

True/False: Insurers in Idaho must, within 14 days after proof of loss has been furnished, make claim payments.

False- Insurers in Idaho must, withing 30 days after proof of loss has been furnished, make claim payments.

Rebating

Knowingly giving special favors or advantage in the dividends or other benefits; paid employment or contract for services;valuable consideration or inducement; and returns or profits are examples of...

Defamation

Make or publish, directly or indirectly, any oral or written statement or any pamphlet, circular, article or literature that is false or maliciously critical of or derogatory to , the financial condition of any insurer and that is calculated to injure the insurer.

Twisting

Making any written or oral statements misrepresenting or making incomplete comparisons as to policy terms, conditions, or benefits for the purpose of inducing a policyholder to lapse, forfeit, surrender, lease, retain, exchange, or convert, any insurance policy, right, or option.

False Advertising

Making or placing before the public a statement which is untrue, deceptive, or misleading with respect to any person in the conduct of his insurance business.

Violation of Idaho's Insurance Code fines are:

Not more than $1,000 for any individual, no more than $5,000 for insurance company.

Rebating

Returning a portion of the premium or the agent's/broker's commission on the premium to the insured or other inducements to place business with a specific insurer.

What is the penalty for violators found guilty of a fraud which is a felony.

Subject to 15 years, a fine not to exceed $15000 or both.

True/False: An un-emancipated minor cannot be bound to pay premiums.

True

True/False: Fire insurance companies in Idaho required to report to the state fire marshal within seven days after settling fire losses of $1,000 or more with all fire losses resulting in death or personal injury, including those covered by workmen's comp.

True

True/False: In Idaho, it is unlawful to make misrepresent and make false claims in advertisements for insurance including estimates, circular, or statement. .

True

True/False: Payment must be made no later than twenty days after the insurer receives an itemized bill for the completed repairs.

True

True/False- Violations of Idaho's Insurance Code are subject to administrative penalties and are in addition to any denial, suspension, or revocation of certificate of authority or license.

True.

True/False: Group policies and life or disability insurance policies or annuities are not considered discrimination or rebating and are permitted.

True.

Refusing to pay claims without conducting a reasonable investigation based on all available information is an example of...

Unfair Method of Competition

True/False: Attempting to settle claims on the basis of a declaration page which was altered without notice to, or knowledge or consent of the insured is an example of Unfair Method of Competition.

False- Attempting to settle claims on the basis of an application which was altered without notice to, or knowledge or consent of the insured is an example of Unfair Method of Competition

True/False: Promptly providing a reasonable explanation of the basis in the insurance policy in relation to the facts or applicable law for denial of a claim or for the offer of a compromise settlement is an example of Unfair Method of Competition.

False- Failing to promptly providing a reasonable explanation of the basis in the insurance policy in relation to the facts or applicable law for denial of a claim or for the offer of a compromise settlement

True/False: All the following are examples of Unfair Method of Competition except: a. making claims payments to insureds or beneficiaries not accompanied by a statement setting forth the coverage under which the payments are being made. b. Making known to insureds or claimants for the purpose of compelling them to accept settlements or compromises less than the amount awarded in arbitration. c. Delaying the investigation or payment of claims by requiring both a preliminary claim report and formal proof of loss. d. Failing to promptly settle claims, where liability has become reasonably clear, under other portions of the insurance policy coverage.

True- All are examples of Unfair Method of Competition.

True/False: Idaho law prohibits anyone from making an agreement to commit an act of boycott, coercion, or intimidation resulting in or tending to result in , the unreasonable restraint of or monopoly in the business of insurance.

True.