CALA Laws, Regulations & Licensing Compliance 2

Question 1

Under most state insurance codes, a public adjuster must disclose their fee arrangement to the insured within how many days of signing a contract?

Accepted Answer

3 business days

Answer

Most states require public adjusters to disclose fee arrangements within 3 business days of executing the contract with the insured.

Question 2

Which federal law primarily governs the privacy of non-public personal financial information held by insurance companies?

Accepted Answer

Gramm-Leach-Bliley Act

Answer

The Gramm-Leach-Bliley Act (GLBA) requires insurers to protect consumers' non-public personal financial information and provide privacy notices.

Question 3

A surplus lines insurer may be used when the required coverage cannot be obtained from how many authorized insurers under typical state law?

Accepted Answer

At least three

Answer

Most states require a diligent search showing that at least three authorized insurers have declined the risk before placing coverage in the surplus lines market.

Question 4

Which entity primarily enforces the Unfair Claims Settlement Practices Act at the state level?

Accepted Answer

The state Department of Insurance

Answer

The state Department of Insurance enforces the Unfair Claims Settlement Practices Act, which is adopted by each state individually.

Question 5

Under the principle of indemnity, an insured who has collected benefits from two insurers for the same loss has likely violated which doctrine?

Accepted Answer

Contribution

Answer

The contribution doctrine prevents an insured from collecting more than the actual loss by requiring insurers covering the same risk to share payments proportionally.

(CALA) Certified All-Lines Adjuster Practice Test

(CALA) Certified All-Lines Adjuster Practice Test

CALA Laws, Regulations & Licensing Compliance 2