6.) INSURANCE REGULATION QUIZ QUESTIONS

Question 1

Which of the following is considered an Unfair Claims Settlement Practice in Louisiana?

A. Withholding payment on a legitimate, undisputed claim
B. Denying a claim on the basis of a policy exclusion
C. Attempting to settle claims for less than the claimant is demanding
D. Requesting more information before approving or denying a claim

Answer 1

A. Withholding payment on a legitimate, undisputed claim

Question 2

Which of the following is NOT a requirement that an individual must meet to be eligible for an insurance adjuster license in Louisiana?

A. Pass the required examination
B. Submit fingerprints for a background check
C. Obtain a $1,000 surety bond
D. Be at least 18 years of age

Answer 2

C. Obtain a $1,000 surety bond

Question 3

Which of the following activities is NOT expressly prohibited under Louisiana insurance law?

A. Denying a claim after completing a full investigation
B. Employing someone who has been convicted of a felony
C. Signing someone else’s name on an insurance application
D. Obtaining a license through misrepresentation

Answer 3

A. Denying a claim after completing a full investigation

Question 4

Producers are responsible for:

A. representing insurers in court.
B. investigating damage to an insured’s property.
C. selling insurance.
D. adjusting claims.

Answer 4

C. selling insurance.

Question 5

The main focus of the FCRA is to:

A. provide federal reinsurance for insurance companies offering terrorism coverage.
B. implement health care reform at the federal level.
C. regulate how credit agencies and financial institutions treat their customers’ personal information.
D. establish standards, best practices, and regulatory support for insurance carriers nationwide.

Answer 5

C. regulate how credit agencies and financial institutions treat their customers’ personal information.

Question 6

According to the Gramm-Leach-Bliley Act, “non-public personal information” could refer to all of the following, EXCEPT:

A. medical bills.
B. health information accompanying financial transactions.
C. financial information with personal identifiers removed.
D. loan balances and payment history.

Answer 6

C. financial information with personal identifiers removed.

Question 7

According to the Fraud and False Statements Act, what happens if a fraudulent act leads to an insurance company being put into conservation, rehabilitation, or liquidation?

A. The fine collected will be given to the appropriate regulatory official for the benefit of the policyholders, claimants, and creditors of the insurer.
B. The offender will be imprisoned for at least one year, and up to fifteen years.
C. The federal government will step in and reimburse the insurance company for the loss.
D. The company will need to obtain a 1033 Waiver.

Answer 7

A. The fine collected will be given to the appropriate regulatory official for the benefit of the policyholders, claimants, and creditors of the insurer.

Question 8

An insurer may not:

A. charge higher premiums to elderly drivers.
B. expand coverage without requiring the insured to sign a new, revised policy.
C. distribute pamphlets or advertisements.
D. try to settle a claim using an application that was altered without the knowledge of the insured.

Answer 8

D. try to settle a claim using an application that was altered without the knowledge of the insured.

Question 9

Which of the following public adjusters is violating the Standards of Conduct?

A. Theresa does not adjust personal injury claims.
B. Neal declines his client’s request that he file a complaint in court on behalf of the client.
C. James is overwhelmed with work during a natural disaster, so he hires his brother, a construction worker who is not a licensed adjuster, to work for him, consulting with claimants and handling claims.
D. Adelaide recommends a certain construction company for repairs while handling a claim, but she doesn’t receive a commission or fee for doing so.

Answer 9

C. James is overwhelmed with work during a natural disaster, so he hires his brother, a construction worker who is not a licensed adjuster, to work for him, consulting with claimants and handling claims.

Question 10

Which unfair claims settlement practice involves an adjuster making false statements about policy coverage in order to reduce the settlement?

A. Misrepresentation
B. Interference
C. Defamation
D. Coercion

Answer 10

A. Misrepresentation

Question 11

In Louisiana, a claims adjuster must complete _____, including _____, every two years.

A. 20 hours of CE; 1 hour of NFIP Flood training
B. 24 hours of CE; 3 hours of NFIP Flood training
C. 18 hours of CE; 3 hours of Ethics training
D. 24 hours of CE; 3 hours of Ethics training

Answer 11

D. 24 hours of CE; 3 hours of Ethics training

Question 12

A Louisiana adjuster who received his license (number: 4764) on May 1st, 2017 and whose birthday is April 10 must renew his license by:

A. May 1st, 2019.
B. December 31st, 2019.
C. April 10, 2018.
D. April 30, 2018.

Answer 12

D. April 30, 2018.

Question 13

Which of the following adjusters is abiding by the Adjuster Standards of Conduct?

A. Samantha is adjusting a claim and offers the insured a price for 5 damaged sconces that she thinks will look great in her foyer.
B. Tyler strongly advises an insured not to hire his freind Caden as a public adjuster, because Tyler is angry at Caden for cheating during their last game of poker.
C. Vanessa declines to adjust a claim assigned her by an insurer, because she feels that she doesn’t have the expertise to handle it.
D. Lucas is a licensed independent adjuster. During a catastrophe, he decides to advertise himself as a public adjuster.

Answer 13

C. Vanessa declines to adjust a claim assigned her by an insurer, because she feels that she doesn’t have the expertise to handle it.

Question 14

Which of the following is NOT one of the unfair claims settlement practices specifically prohibited by Louisiana law?

A. Knowingly misrepresenting pertinent facts or policy provisions to a claimant
B. Failing to promptly acknowledge communications about a claim
C. Not attempting in good faith to bring about a prompt, fair claim settlement when liability is reasonably clear
D. Failing to settle a claim within 5 business days of receiving a proof of loss

Answer 14

D. Failing to settle a claim within 5 business days of receiving a proof of loss

Question 15

An adjuster must report a change of address to the Insurance Commissioner:

A. within 60 days.
B. within 15 days.
C. within 45 days.
D. within 30 days.

Answer 15

D. within 30 days.

Question 16

Claude is an independent adjuster working on a claim. He overhears the claimant say that she wants to hire a good attorney in case she’s dissatisfied with the settlement. Claude’s brother-in-law is an attorney, so Claude recommends his brother-in-law’s services to the claimant at the end of the day. Which of the following is true?

A. Claude has engaged in an Unfair Claims Settlement practice.
B. Claude could be fined $3,000 for his actions.
C. As long as Claude doesn’t receive a kickback from his brother-in-law, there is nothing wrong with his actions in this situation.
D. Claude has violated the Adjuster Standards of Conduct.

Answer 16

D. Claude has violated the Adjuster Standards of Conduct.

Question 17

Which of the following offenses committed by an insurance professional is NOT punishable by a fine of up to $50,000, according to the Fraud and False Statements Act?

A. Making a false entry that is meant to deceive in a book, report, or statement, about an insurer’s financial condition.
B. Obstructing the proper administration of the law while an insurance company is under investigation.
C. Embezzlement of funds.
D. Conducting insurance business across state lines.

Answer 17

D. Conducting insurance business across state lines.

That’s right! Conducting insurance business across state lines is not an offense.

Question 18

Catastrophe adjuster permits are valid for _____, but the commissioner may extend them for an additional _____.

A. 120 days; 60 days
B. 180 days; 180 days
C. 90 days; 90 days
D. 180 days; 90 days

Answer 18

D. 180 days; 90 days

Question 19

Which Federal Law regulates the collection, dissemination, and use of consumer information by financial institutions, credit agencies, and insurance companies?

A. FCRA - Fair Credit Reporting Act
B. FIGA - Federal Insurance Guaranty Act
C. HIPAA - Health Insurance Portability and Accountability Act
D. IIPPA - Insurance Information and Privacy Protection Act

Answer 19

A. FCRA - Fair Credit Reporting Act

Question 20

If an adjuster violates insurance law, the Insurance Commissioner may, after sending a notice of wrongful conduct, administer a fine of up to:

A. $2,500 per violation.
B. $5,000 per violation.
C. $1,000 per violation.
D. $300 per violation.

Answer 20

C. $1,000 per violation.