CALA Laws, Regulations & Licensing Compliance 3

Question 1

Under the McCarran-Ferguson Act, federal antitrust laws apply to the insurance industry only when:

Accepted Answer

State law does not regulate the specific conduct

Answer

The McCarran-Ferguson Act provides that federal antitrust laws apply to insurance only to the extent state law does not regulate that particular activity.

Question 2

Which document formally authorizes a licensed adjuster to act on behalf of an insurer for a specific claim?

Accepted Answer

Letter of authority

Answer

A letter of authority (or authorization letter) from the insurer formally designates the adjuster to handle a specific claim on the company's behalf.

Question 3

An adjuster who falsifies a claim report to increase the settlement amount may be charged under which category of insurance crime?

Accepted Answer

Claims fraud

Answer

Falsifying claim documents to inflate a settlement constitutes claims fraud, a criminal offense that can result in license revocation and prosecution.

Question 4

When a homeowner's policy contains an 'other insurance' clause and two policies cover the same dwelling, each insurer typically pays:

Accepted Answer

Its pro-rata share based on policy limits

Answer

Under pro-rata other insurance clauses, each insurer pays the proportion its policy limit bears to the total limits of all applicable policies.

Question 5

A non-resident adjuster license is typically required when an adjuster handles claims in a state where they:

Accepted Answer

Are not domiciled but are licensed in another state

Answer

A non-resident adjuster license allows an adjuster domiciled and licensed in another state to legally adjust claims in the non-resident state.

(CALA) Certified All-Lines Adjuster Practice Test

(CALA) Certified All-Lines Adjuster Practice Test

CALA Laws, Regulations & Licensing Compliance 3