Insurance Practices and Fraud Quiz

What is an unfair claims practice?

• Paying out a claim promptly

• Properly handling a claim

• Increasing the size of a claim

• Improper avoidance of a claim by an insurer

Who enforces the Unfair Claims Settlement Practices Acts (UCSPA)?

• National Association of Insurance Commissioners

• Individual states

• Insurance companies

• Federal government

What is an example of an unfair claims practice?

• Providing clear communication

• Increasing the claim amount

• Delaying payment of a legitimate claim

• Paying a claim on time

Which organization created a model of unfair claims practice legislation?

• Federal Trade Commission

• National Association of Insurance Commissioners

• Insurance Information Institute

• American Insurance Association

What is insurance fraud?

• Increasing the size of a claim

• Properly handling a claim

• Any deceptive act to obtain improper payment from an insurance company

• Paying out a claim promptly

Which of the following is NOT an example of insurance fraud?

• Staging an accident

• Submitting a false claim

• Paying a claim on time

• Exaggerating damages

Which section of the U.S. Code prohibits false statements related to financial reports in the insurance business?

• Title 18 Section 4118

• California Penal Code Section 550 PC

• Title 18 Section 4117

• 18 U.S. Code Section 1033

What is 'churning' in the context of insurance fraud?

• Convincing clients to buy unnecessary insurance products

• Staging an accident

• Faking a death

• Overbilling for services

Which of the following is a potential legal defense against insurance fraud charges?

• Exaggerating damages

• Submitting a false claim

• Staging an accident

• Lack of intent

Who can commit insurance fraud?

• Only insurance companies

• Only policyholders

• Healthcare providers, property owners, employees, and scammers

• Only federal agents