CCA Laws, Regulations, and Ethics 4

Question 1

The McCarran-Ferguson Act of 1945 established that insurance regulation is primarily the responsibility of:

Accepted Answer

Individual states

Answer

McCarran-Ferguson granted states the authority to regulate the insurance industry, preempting most federal regulation.

Question 2

An adjuster who accepts gifts or entertainment from a contractor in exchange for directing claims work may be committing:

Accepted Answer

Kickback fraud

Answer

Accepting compensation for directing business to a vendor constitutes a kickback, which is illegal and a serious ethical violation.

Question 3

Which document establishes the terms, conditions, and coverage limits that govern how a claim must be handled?

Accepted Answer

The insurance policy contract

Answer

The insurance policy is the binding contract whose terms define the scope, conditions, and limits of coverage for any claim.

Question 4

Under the principle of indemnity, an insured should receive:

Accepted Answer

Exactly enough to restore the insured to their pre-loss financial position

Answer

The principle of indemnity prevents unjust enrichment by limiting recovery to the actual financial loss suffered.

Question 5

A claimant submits a claim for a theft that allegedly occurred, but investigation reveals no forced entry and conflicting statements. The adjuster should:

Accepted Answer

Document inconsistencies and conduct a thorough investigation before deciding

Answer

Suspicious circumstances require thorough investigation and documentation before any coverage decision is made.

(CCA) Certified Claims Adjuster Practice Test

(CCA) Certified Claims Adjuster Practice Test

CCA Laws, Regulations, and Ethics 4