CCA Laws, Regulations, and Ethics 2

Question 1

Under most state insurance codes, what is the maximum number of days an insurer has to acknowledge receipt of a claim after it is filed?

Accepted Answer

10 days

Answer

Most state unfair claims settlement practice acts require acknowledgment of a claim within 10 days of receipt.

Question 2

Which federal law prohibits insurance companies from using race, color, religion, sex, or national origin as a basis for discriminatory claims handling?

Accepted Answer

Civil Rights Act of 1964

Answer

The Civil Rights Act of 1964 prohibits discrimination in insurance services based on protected characteristics.

Question 3

A claims adjuster who inflates repair estimates to earn higher commissions is committing:

Accepted Answer

Insurance fraud

Answer

Inflating estimates for personal financial gain constitutes insurance fraud, a criminal offense.

Question 4

The principle requiring adjusters to handle similarly situated claims in a consistent and uniform manner is known as:

Accepted Answer

Consistent claims handling

Answer

Consistent claims handling ensures that comparable claims are processed with the same standards to avoid discriminatory treatment.

Question 5

When an insurer denies a claim, which of the following must typically be provided to the claimant?

Accepted Answer

A written denial with the specific policy provisions relied upon

Answer

State regulations generally require written denial letters citing the specific policy language or exclusions supporting the decision.

(CCA) Certified Claims Adjuster Practice Test

(CCA) Certified Claims Adjuster Practice Test

CCA Laws, Regulations, and Ethics 2