CCA Laws, Regulations, and Ethics

Question 1

Which law prohibits unfair or deceptive acts in the insurance industry?

Accepted Answer

Unfair Claims Settlement Practices Act

Answer

Gramm-Leach-Bliley Act

Answer

Fair Credit Reporting Act

Answer

Insurance Guaranty Act

Question 2

What is a primary ethical responsibility of a claims adjuster?

Accepted Answer

Act honestly and transparently

Answer

Maximize claim payouts

Answer

Settle quickly at all costs

Answer

Provide legal advice

Question 3

Which entity typically regulates insurance practices at the state level?

Accepted Answer

Department of Insurance

Answer

Department of Labor

Answer

Federal Reserve

Answer

Securities and Exchange Commission

Question 4

A claims adjuster shares private policyholder info with a third party. What regulation may be violated?

Accepted Answer

GLBA (Gramm-Leach-Bliley Act)

Answer

HIPAA

Answer

FMLA

Answer

ADA

Question 5

Which of the following is an example of an unfair claims practice?

Accepted Answer

Denying a claim without investigation

Answer

Requesting proof of loss

Answer

Promptly investigating a claim

Answer

Paying a claim based on policy limits

Question 6

What does ethical behavior in claims adjusting primarily ensure?

Accepted Answer

Consumer trust and legal compliance

Answer

Higher premiums for clients

Answer

Improved public image

Answer

Larger settlements