Primerica Life Producer Practice Test

In case of a dispute about coverage under a policy, which authority is responsible for settling the dispute?

1. Insurance Commissioner

2. Arbitration Board

3. Court System

4. Insurance Company Claims Adjuster

The correct answer is: Court System

In situations where there is a dispute about coverage under an insurance policy, the appropriate authority responsible for resolving that dispute typically rests with the court system. This is due to the court's role in interpreting contract language and ensuring that the rights of all parties involved are upheld according to the law. The judiciary has the authority to render decisions based on the evidence presented and can enforce contracts as necessary. While other entities, such as an Insurance Commissioner or an Arbitration Board, may play roles in regulatory oversight or alternative dispute resolution respectively, they do not have the definitive legal power to make binding decisions on policy coverage disputes like the courts do. Likewise, a Claims Adjuster works primarily for the insurance company to assess claims and may not have the authority to make final decisions in disputes that require legal adjudication. Hence, the court system is the most appropriate authority for settling disputes about coverage under a policy.