Laws, Regulations, and Ethics Flashcards
6 cards from real CCA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Laws, Regulations, and Ethics flashcards as text
Which law prohibits unfair or deceptive acts in the insurance industry?
Answer: Unfair Claims Settlement Practices Act
The Unfair Claims Settlement Practices Act is designed to protect consumers and ensure fair treatment by insurers.
What is a primary ethical responsibility of a claims adjuster?
Answer: Act honestly and transparently
Maintaining honesty and transparency ensures trust and integrity in the claims process.
Which entity typically regulates insurance practices at the state level?
Answer: Department of Insurance
Each state’s Department of Insurance oversees licensing, compliance, and consumer protection.
A claims adjuster shares private policyholder info with a third party. What regulation may be violated?
Answer: GLBA (Gramm-Leach-Bliley Act)
The Gramm-Leach-Bliley Act restricts sharing of personal financial information without consent.
Which of the following is an example of an unfair claims practice?
Answer: Denying a claim without investigation
Denying a claim without a proper investigation violates fair claims handling standards.
What does ethical behavior in claims adjusting primarily ensure?
Answer: Consumer trust and legal compliance
Ethical conduct helps protect consumers, uphold trust, and avoid legal penalties for misconduct.