All of the following are examples of unlawful acts EXCEPT:
A. Misrepresenting the name or title of a policy.
B. Refusing to pay claims after a reasonable investigation has been made based upon all available information.
C. Misrepresenting the financial condition of an insurer.
D. Setting forth false information about a policy or benefit.
Answer (2)
Among the options presented, all are considered unlawful acts in insurance except for refusing to pay claims after a reasonable investigation, which may be permissible based on the investigation's findings. This highlights the nuanced nature of insurance practices and the importance of proper investigation. Understanding these distinctions is crucial for compliance and ethical behavior in the insurance industry. ;
The correct answer is B, as refusing to pay claims can be lawful if based on a reasonable investigation. The other options represent clear unlawful practices in the insurance industry. Understanding these nuances is critical in insurance law.
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