Florida Insurance Claims Adjuster License Practice Exam

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Which of the following is a violation of the Unfair Trade Practices Act?

  1. Failing to act promptly

  2. Properly denying a claim

  3. Maintaining complaint-handling procedures

  4. Promptly affirming claims

The correct answer is: Failing to act promptly

The Unfair Trade Practices Act is designed to prevent deceptive and unfair business practices. Therefore, any actions that go against this goal would be considered a violation of the act. Option A, failing to act promptly, could be seen as deceptive or dishonest if a company delays taking action on a claim or complaint. The other options, properly denying a claim, maintaining complaint-handling procedures, and promptly affirming claims are all in line with the principles of the act and would not be considered a violation.

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