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

The Unfair Claims Settlement Practices Act is designed to protect consumers and ensure fair treatment by insurers.

Question 2

What is a primary ethical responsibility of a claims adjuster?

Accepted Answer

Act honestly and transparently

Answer

Maintaining honesty and transparency ensures trust and integrity in the claims process.

Question 3

Which entity typically regulates insurance practices at the state level?

Accepted Answer

Department of Insurance

Answer

Each state’s Department of Insurance oversees licensing, compliance, and consumer protection.

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

The Gramm-Leach-Bliley Act restricts sharing of personal financial information without consent.

Question 5

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

Accepted Answer

Denying a claim without investigation

Answer

Denying a claim without a proper investigation violates fair claims handling standards.

(CCA) Certified Claims Adjuster Practice Test