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Property and Casualty Insurance Producer Exam

Unfair practices (FL): practice questions

Our Property & Casualty Insurance bank has 11 questions on this topic. Here are 5 of them with answers; the full mock exam draws from every topic, like the real one.

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Question 1 · Florida

Failing to explain in writing the policy basis for a claim denial or a compromise offer is, under Florida law:

  1. Optional for the insurer if the claim is small
  2. An unfair claim settlement practice
  3. Required only for auto claims
  4. A matter for the courts only
Show the answer

B. An unfair claim settlement practice — Fla. Stat. 626.9541(1)(i)3.f.: failing to promptly provide a reasonable written explanation of the basis for denial or a compromise offer.

Question 2 · Florida

Under Florida law, an insurer or agent may give, for advertising, merchandise worth no more than:

  1. $25
  2. $10
  3. $50
  4. $100
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A. $25 — Fla. Stat. 626.9541(1)(m): giving articles of merchandise having a value of not more than $25 for advertising is not an unlawful inducement.

Question 3 · Florida

In Florida's complaint-record rule, a 'complaint' means:

  1. Any phone call to the insurer about a claim or policy
  2. Only lawsuits
  3. Only complaints filed with the state
  4. Any written communication primarily expressing a grievance
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D. Any written communication primarily expressing a grievance — Fla. Stat. 626.9541(1)(j): 'complaint' means any written communication primarily expressing a grievance.

Question 4 · Florida

Under Florida's unfair claim practices law, an insurer that changes an adjuster's report in a way that lowers the estimate must:

  1. Explain why in detail and list every change and who ordered it
  2. Destroy the earlier version
  3. Notify the police
  4. Get the agent's signature on the revised report before sending it
Show the answer

A. Explain why in detail and list every change and who ordered it — Fla. Stat. 626.9541(1)(i)3.j.: altering a report without a detailed explanation and a list of all changes and who ordered them is an unfair practice.

Question 5 · Florida

On written request of the insured, a Florida insurer must affirm or deny coverage (or say the claim is being investigated) within how many days after proof-of-loss statements are completed?

  1. 30 days
  2. 10 days
  3. 45 days
  4. 90 days
Show the answer

A. 30 days — Fla. Stat. 626.9541(1)(i)3.e: failing to affirm or deny coverage, or provide a written statement that the claim is being investigated, within 30 days after proof-of-loss statements are completed.

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