ch 2-3

Card Set Information

ch 2-3
2011-06-10 02:53:34
unfair trade claims settlement

Unfair Trade & Claims Settlement Practices
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  1. Rebating
    Insurance agent uses a bribe or incentive to get a customer to purchase a policy
  2. Twisting
    Misrepresentation by the agent to convince the policyowner to switch insurance companies and/or policies
  3. Defamation
    False or malicious communication that injures another reputation, fame or character
  4. Unfair Claim Settlement Practice
    Companies/agents must act in good faith and promptly pay its obligation to the insured in the event of a loss.
  5. Fiduciary
    Person or institution that has the responsibility for the money, property or financial affairs of another
  6. Excessive Charges
    When an agent charges an extra fee, this charge amounts to an overcharge of premium constituting unfair discrimination against the insured charged.
  7. Unfair Trade Practices Regulation
    Applies to all persons and to all insurance policies and insurance contracts except worker's comp, title insurance and fidelity and surety bonds.
  8. Gramm-Leach-Bliley Act ("GLBA")
    Requires financial institutions, including insurers, to protect the privacy of consumers and customers.
  9. Fair Access to Insurance Requirements (FAIR) Plans
    Applications for insurance can't be rejected solely because of environmental hazards beyond the control of the insured
  10. Guaranty Plans
    Covers losses and returns policy premiums of insolvent insureres
  11. Assigned Risk Plans
    Provides a market for auto coverage where the applicant has been unable to obtain coverage in the usual marketplace
  12. Terrorism Risk insurance Act (TRIA)
    2002. Provides federal funds to assist insurers in paying claims caused by terrorism until 2007. Does not apply if loss caused by war or loss is less than $5 million
  13. Fair Credit Reporting Act
    Consumer reports must accurately reflect creditworthiness and eligibility for credit or insurance, employment purposes or underwriting. May not contain medical info unless consented. Adverse info lasts 7 years, bankruptcies-10
  14. Insurance Fraud and False Statements
    Punishable by a fine and/or imprisonment for up to 10 years. If act jepordizes safety and soundnes of insurance company - 15 years