Match each prohibited unfair trade practice with its correct statutory description.
- Unfair DiscriminationCharging different premium rates for individuals who are in the exact same risk class and have the same life expectancy.
- False Financial StatementsFiling materially inaccurate business records with the intent to deceive public officials or regulators about an insurer's solvency.
- BoycottA coordinated refusal by a group to deal with a specific entity in order to restrict free trade or create a monopoly.
- MisrepresentationMaking a statement that misleads the public regarding the terms, benefits, or dividends of an insurance policy.
Answer
The correct pairings are: Unfair Discrimination matches with charging different rates for the same risk class; False Financial Statements matches with filing inaccurate records; Boycott matches with a coordinated refusal to deal; and Misrepresentation matches with making misleading statements about policy terms.
Each definition precisely aligns with the statutory descriptions of unfair trade practices outlined by state regulations and the NAIC model act. Identifying these practices accurately is essential for maintaining a compliant insurance business.
Step-by-Step Solution
Key Concept
Identifying Unfair Trade Practices
Estimated Time:1m 0s