California Insurance Code & EthicsQuestion 52 of 158
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.Asking the insured for a sworn proof of loss within a reasonable time
c.Offering to repair a covered vehicle at a licensed body shop
d.Sending the insured a copy of the policy on request
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)Practice all 158 questions free — no signup required.
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