Florida Insurance Claims Adjuster License Practice Exam

Which act describes penalties for misrepresentation to insureds and claimants?

1. Florida Fair Trade Commission Act

2. Florida Unfair Insurance Trade Practices Act

3. Florida Insurance Compliance Act

4. Florida Consumer Protection Act

The correct answer is: Florida Unfair Insurance Trade Practices Act

This act outlines the penalties for any false or deceptive statement made by insurance companies to their insured clients or claimants. The other options listed do not specifically address misrepresentation and instead focus on other aspects of insurance trade and regulation. The Florida Fair Trade Commission Act deals with regulating fair trade practices within the state. The Florida Insurance Compliance Act enforces regulations regarding insurance companies' compliance with state laws. The Florida Consumer Protection Act safeguards consumers against harmful or deceptive business tactics, but does not specifically pertain to insurance practices. Therefore, option B is the most accurate and relevant answer to the question.