Laws, Regulations & Licensing Compliance Flashcards
7 cards from real CALA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Laws, Regulations & Licensing Compliance flashcards as text
Which licensing category typically does NOT require a separate adjuster license in most states?
Answer: Staff adjuster employed directly by an insurer
Staff adjusters employed directly by an insurer are often exempt from individual adjuster licensing requirements because they act under the insurer's license.
The 'made whole' doctrine in subrogation requires that:
Answer: The insured must be fully compensated for their loss before the insurer can recover subrogation proceeds
The made whole doctrine holds that the insured's full recovery takes priority over the insurer's subrogation rights; the insurer recovers only after the insured is made whole.
Under the NAIC model regulation, when must an insurer provide written notice of its acceptance or denial of a claim after receiving proof of loss?
Answer: Within 30 business days
The NAIC model regulation generally requires insurers to accept or deny a claim within 30 business days after receiving a complete proof of loss.
A licensed adjuster who acts as a public adjuster on the side without proper disclosure may face disciplinary action for:
Answer: Conflict of interest and license misuse
Acting simultaneously as a staff or independent adjuster and a public adjuster creates a conflict of interest that most state regulations explicitly prohibit.
Which of the following is a required element for a valid insurance contract under general contract law?
Answer: Insurable interest, offer and acceptance, consideration, and legal purpose
A valid insurance contract requires insurable interest, offer and acceptance, consideration (premium), and a legal purpose, the same elements as any contract plus insurable interest.
Under most state insurance codes, a licensed adjuster must report a felony conviction to the Department of Insurance within:
Answer: 30 days
Most states require licensees to report felony convictions to the Department of Insurance within 30 days of the conviction or entry of a guilty plea.
The primary purpose of the National Flood Insurance Program (NFIP) Write-Your-Own (WYO) arrangement is to:
Answer: Enable private insurers to issue and service NFIP policies while the federal government retains financial risk
Under the WYO program, participating private insurers issue and service NFIP flood policies in their own names, but the federal government (FEMA) bears the underwriting risk.