Unit 2 Quiz

Question 1

All of the following are unfair claims practices EXCEPT…

Answer 1

… providing an attorney to defend the insured for a suit arising out of a covered claim

WHY? adjuster has an obligation to act in the best interest of the 1st party insurer).

Question 2

How many parties does an insurance contract have?

Answer 2

2 parties… INSURED and INSURER

Question 3

Who is the 1st party in an insurance contract?

Answer 3

The INSURED.

Question 4

How long does an insurer have to respond to a NOTICE OF CLAIM?

Answer 4

15 CALENDAR days.

** NOTE: Providing PROOF OF LOSS CLAIM FORM is one of the most important responses an adjuster can give during this particular process.

Question 5

Which of the following is NOT an example of an unfair claims settlement practice?

Answer 5

Allowing an insured to decide whether to collect under collision instead of uninsured/under-insured motorists coverage.

Question 6

Once an agreement has been reached regarding settlement of claim, how long does an insurer have to issue a check?

Answer 6

5 business days.

Question 7

All of the following statements regarding the claims settlement process are true EXCEPT…

Answer 7

… insurers must pay claims within 15 days of receiving notice of the claim.

WHY? Insurers don’t have to pay out a claim until they agree to pay the claim. The insurer has 15 calendars to respond to a claim and an additional 15 business days to accept or reject a claim.