California Insurance Code & EthicsQuestion 47 of 716
Which of the following actions by an insurer would constitute an unfair claims settlement practice under California law?
a.Offering a settlement amount based on a properly conducted and fully documented claim investigation
b.Failing to acknowledge and act reasonably promptly upon communications with respect to claims
c.Beginning a prompt investigation once the insurer receives written notice of the loss from the insured
d.Requesting reasonable proof of loss on the insurer's own claim form before paying a first-party claim
Explanation
§790.03(h)(2) lists failing to acknowledge and act reasonably promptly on claim communications as one of the enumerated unfair claims settlement practices. The other options describe lawful, expected insurer conduct.
Law Reference: Cal. Ins. Code §790.03(h)This topic, taught in full in the California Life & Health Insurance Producer Exam guide. California Life & Health Insurance Producer Exam — Complete Study Guide (2026) — PDF + EPUB, $19.99 · 14-day refund →
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PrepPass team · Verified against California Life & Health Insurance License Exam · How we review
Reviewed by John Zihao Zhang — California-Licensed Life Insurance Agent (CA Dept. of Insurance License #4396095 — verify)