State Insurance Regulations Flashcards
7 cards from real CCP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 State Insurance Regulations flashcards as text
Under most state insurance regulations, what is the maximum number of days an insurer has to acknowledge receipt of a claim after notification?
Answer: 10 business days
Most state regulations require insurers to acknowledge receipt of a claim within 10 business days of notification.
Which state regulatory body is primarily responsible for overseeing insurer claims handling practices?
Answer: State Department of Insurance
The State Department of Insurance (or equivalent) has primary regulatory authority over insurer claims handling within each state.
A state's Unfair Claims Settlement Practices Act (UCSPA) prohibits insurers from doing which of the following?
Answer: Failing to promptly settle claims where liability is clear
UCSPA prohibits insurers from failing to promptly settle claims in which liability has become reasonably clear.
What does the term 'reservation of rights' mean in the context of state insurance regulations?
Answer: The insurer investigates while preserving its right to deny coverage later
A reservation of rights letter notifies the insured that the insurer is investigating the claim while preserving its right to deny coverage if a policy exclusion applies.
Under state bad faith laws, which element does a claimant typically NOT need to prove to establish insurer bad faith?
Answer: The insurer intended to commit fraud
Most state bad faith claims do not require proof of intentional fraud; an unreasonable basis for denial or delay is typically sufficient.
Which of the following is a typical requirement under state prompt payment statutes for personal lines property claims?
Answer: Settlement within 45 days of proof of loss
Many states require insurers to accept or deny a claim and issue payment within 45 days of receiving proof of loss for property claims.
When a state requires an insurer to provide a 'written explanation of denial,' what must this document contain?
Answer: The specific reasons for denial and the relevant policy provisions
A denial letter must cite the specific reasons for denial and reference the applicable policy language or exclusions supporting the decision.