California Insurance Code & EthicsQuestion 47 of 215
An insurer routinely tells claimants that policy benefits are lower than they actually are, hoping to settle for less. Under §790.03(h), this conduct is best classified as:
a.Twisting
b.Defamation
c.Boycott
d.An unfair claims settlement practice
Explanation
Section 790.03(h) enumerates 16 unfair claims settlement practices, including misrepresenting pertinent facts or policy provisions to claimants. Twisting concerns replacement of policies, defamation concerns false statements about insurers, and boycott concerns coercion among insurers.
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