Virginia Insurance Virginia Life Annuities and Health Insurance Exam - Topic 5 Question 5 Discussion

Actual exam question for Virginia Insurance's Virginia Life Annuities and Health Insurance exam

Question #: 5
Topic #: 5

[All Virginia Life Annuities and Health Insurance Questions]

What might be considered an unfair claims settlement practice?

AOffering compromise settlements when facts are in question

BDenying coverage for claims after a timely investigation

CFailing to promptly investigate and settle legitimate claims

DCompelling insureds to litigate claims where a real coverage dispute exists

Show Suggested Answer

Suggested Answer: C

An unfair claims settlement practice occurs when insurers do not properly or promptly investigate and settle legitimate claims. This is a key element of unfair practices, as insurers are required by law to act in good faith when handling claims. Failing to promptly investigate or settle legitimate claims is considered unethical and unfair, as it delays rightful compensation and causes unnecessary hardship for policyholders.

The other options may describe improper actions, but failing to promptly investigate and settle claims is more directly tied to unfair practices under the insurance regulations.

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by Han at Jan 22, 2026, 08:32 PM

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Lavonne

1 day ago

Haha, the insurance industry is like a game of cat and mouse. Insurers always trying to find loopholes to avoid paying out.

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Erick

6 days ago

Option D is also a good answer. Forcing insureds to litigate when there's a real coverage dispute is definitely unfair.

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Mica

11 days ago

I agree with Whitley. Insurers should handle claims in a timely and fair manner.

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Whitley

17 days ago

Option C is the correct answer. Failing to promptly investigate and settle legitimate claims is an unfair claims settlement practice.

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Rasheeda

22 days ago

I’m torn between A and C. Offering settlements when facts are unclear seems sketchy, but failing to settle legitimate claims also feels wrong.

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Chery

27 days ago

I feel like option D is definitely unfair since it forces insureds into litigation. We went over similar scenarios in our practice questions.

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Svetlana

2 months ago

I remember discussing something about denying coverage after an investigation in class. That might be option B, but it feels a bit tricky.

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Crissy

2 months ago

I think option C sounds familiar, but I'm not entirely sure if it's the only unfair practice listed.

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Scarlet

2 months ago

Ugh, I'm a little lost on this question. What counts as an "unfair" insurance practice? I guess I'd try to think about ways an insurance company could mistreat policyholders or avoid paying out valid claims, but I'm not totally sure. Hopefully I can at least eliminate some of the wrong answers.

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Carolynn

2 months ago

I feel pretty confident about this one. Unfair claims practices would likely involve the insurance company acting in bad faith - like denying coverage without a proper review or making lowball settlement offers when the facts support the claim. I'll make sure to read the answer choices carefully.

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Nettie

2 months ago

Okay, for this type of question, I'd focus on identifying practices that seem deceptive, unreasonable, or designed to avoid paying out legitimate claims. Things like delaying investigations or forcing the insured to litigate when there's no real dispute.

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Eliseo

3 months ago

Hmm, this seems like a tricky one. I'm not totally sure what would be considered an "unfair claims settlement practice." I guess I'd try to think of ways an insurance company could mistreat or take advantage of policyholders when handling their claims.

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Truman

3 months ago

I think this question is asking about unfair practices that insurance companies might use when handling claims. I'd look for things like denying coverage without a proper investigation or forcing the insured to go to court even when there's a clear coverage dispute.

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