California Insurance Code & EthicsQuestion 50 of 215
Under the Fair Claims Settlement Practices Regulations, an insurer's claim adjuster must do which of the following at the beginning of the claim?
a.Disclose to first-party claimants all benefits, coverages, time limits, or other provisions that may apply
b.Wait until the insured retains counsel before disclosing policy benefits
c.Disclose only the policy limits, but no other provisions
d.Disclose nothing until the claim is formally accepted
Explanation
10 CCR §2695.4(a) requires the insurer to disclose to a first-party claimant all benefits, coverages, time limits, or other provisions of any policy that may apply to the claim. Waiting for counsel, partial disclosure, or no disclosure is a violation of the regulation.
Law Reference: 10 CCR §2695.4(a)Practice all 215 questions free — no signup required.
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