California Insurance Code & EthicsQuestion 52 of 474
Which of the following is a violation of the Unfair Claims Settlement Practices statute (§790.03(h)) in a personal lines context?
a.Misrepresenting to a claimant pertinent facts or insurance policy provisions
b.Sending the insured a copy of the policy on request
c.Requesting a sworn proof of loss and the insured's repair invoices before issuing payment on a first-party claim
d.Offering to repair a covered vehicle at a licensed body shop
Explanation
Section 790.03(h)(1) prohibits misrepresenting to claimants pertinent facts or insurance policy provisions relating to coverages at issue. The other listed activities are normal, lawful claim-handling steps. The 16 enumerated acts in §790.03(h) form the backbone of California unfair-claims-practices law.
Law Reference: Cal. Ins. Code §790.03(h)(1), (3)This topic, taught in full in the Personal Lines Insurance Producer guide. Personal Lines Insurance Producer — Complete Study Guide (2026) — PDF + EPUB, $19.99 · 14-day refund →
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