New York State Life Insurance Exam Questions Practice Question
What is the purpose of the Insurance Frauds Prevention Act?
Correct Answer: C
Rationale: The Insurance Frauds Prevention Act aims to protect consumers from illegal activities related to insurance policies and claims, ensuring fair practices in the industry.
Option A is incorrect as it focuses on underwriting risk evaluation, which is not the primary goal of this Act. Option B misrepresents the Act's purpose; while advertising regulations are important, they do not encompass the broader consumer protection focus. Option D is also inaccurate, as the Act does not mandate public disclosure of an insurer's capital reserves, which is more related to financial transparency than fraud prevention.
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