Which Unfair Trade Practice involves an agent telling a prospective client that a policy’s dividends are guaranteed? The correct answer is “ Misrepresentation “. An agent who tells a client that dividends are guaranteed may be guilty of misrepresentation.
Which unfair trade practice involves making a false statement on an insurance application in order?
Defamation is an unfair trade practice involving false, maliciously critical, or derogatory statements intended to injure a person or company engaged in the insurance business.
Which unfair trade practice involves making false statements about the financial condition of another insurance company?
(18) Misrepresentation in insurance applications . — a. Making false or fraudulent statements or representations on or relative to an application for an insurance policy for the purpose of obtaining a fee, commission, money or other benefit from any insurers, agent, broker or individual.
What entity approves the insurance policy forms used in Florida?
Individual short-term policy forms and rates must be filed and approved by the Florida Office of Insurance Regulation (OIR) prior to being marketed.
What does an agent represent during the solicitation of insurance?
An agent is a person who represents a principal, who can be another person or a company, and act in the principal’s behalf. An insurance agent represents the insurance company and an insurance broker represents the insurance applicant — both must be licensed by the state in which they conduct business.
Which of the following is an example of unfair trade practice?
Some examples of unfair trade methods are: the false representation of a good or service ; false free gift or prize offers; non-compliance with manufacturing standards; false advertising; or deceptive pricing.
Which is an example of an unfair claims settlement practice?
Typical Example of Unfair Claims Practice
The insurance company delays payment , rendering the business owner unable to repair any of the damage. The insurance company continues using delay tactics to avoiding making a payment.
What is the difference between an unfair claim practice and an unfair trade practice?
These unfair trade practices also serve to define those practices that may be harmful or deceptive to consumers . Unfair claims settlement practices acts, as legislated by the states, protect consumers from some of the more egregious claims settlement and delay practices.
What happens when trade is unfair?
The unfair trade can distort the normal course of business and adversely affect farmers, businesses and workers and this is why trade remedies play an important role in maintaining the level playing field necessary for a properly functioning global trading system.
How can we prevent unfair trade?
- Avoid misleading your customers about price, quality and value. ...
- Avoid making false claims about products or services. ...
- Avoid making false and misleading claims about Indigenous souvenirs and artwork. ...
- Avoid using unfair business tactics. ...
- Claims about country of origin.
What is an example of rebating?
An example of rebating is when the prospective insurance buyer receives a refund of all or part of the commission for the insurance sale . Rebates can be made in the form of cash, gifts, services, payment of premiums, employment, or almost any other thing of value.
What percentage of eligible persons must a policy?
Insurance companies typically require 100 percent of eligible employees to participate in noncontributory plans. Employers are allowed to set their own guidelines for determining who is eligible to participate in the plan.
What is the required minimum percentage of employee participation?
Typically, noncontributory plans require 100% employee participation; contributory plans usually require approximately 75% participation.
Who does a soliciting agent represent?
The soliciting agent makes contact with potential insurance customers as a salesperson . The agent handles clerical responsibilities but has no authority to make insurance contracts.
What is insurance solicitation?
The solicitation of insurance is the attempt to persuade any person to purchase an insurance product by : ... comparing insurance products, advising as to insurance matters, or interpreting policies or coverages; and/or. offering or attempting to negotiate on behalf of another person a viatical.
Who represents a client in an insurance transaction?
An insurance agent is a professional who sells an insurance company’s products to consumers for a commission. To sell insurance, an agent helps consumers select the right insurance to buy, but represents the insurance company in the transaction.
