CCP State Insurance Regulations 2

Question 1

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

Accepted Answer

10 business days

Answer

Most state regulations require insurers to acknowledge receipt of a claim within 10 business days of notification.

Question 2

Which state regulatory body is primarily responsible for overseeing insurer claims handling practices?

Accepted Answer

State Department of Insurance

Answer

The State Department of Insurance (or equivalent) has primary regulatory authority over insurer claims handling within each state.

Question 3

A state's Unfair Claims Settlement Practices Act (UCSPA) prohibits insurers from doing which of the following?

Accepted Answer

Failing to promptly settle claims where liability is clear

Answer

UCSPA prohibits insurers from failing to promptly settle claims in which liability has become reasonably clear.

Question 4

What does the term 'reservation of rights' mean in the context of state insurance regulations?

Accepted Answer

The insurer investigates while preserving its right to deny coverage later

Answer

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.

Question 5

Under state bad faith laws, which element does a claimant typically NOT need to prove to establish insurer bad faith?

Accepted Answer

The insurer intended to commit fraud

Answer

Most state bad faith claims do not require proof of intentional fraud; an unreasonable basis for denial or delay is typically sufficient.

(CCP) Certified Claims Professional Practice Test

(CCP) Certified Claims Professional Practice Test

CCP State Insurance Regulations 2