State RegulationsCA specific✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
Under the California Unfair Practices Act (CIC Sections 790-790.15), an action alleging unfair or deceptive practices by an insurer:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
The Unfair Practices Act (Sections 790-790.15) gives the Insurance Commissioner exclusive authority to investigate and enforce prohibitions against unfair and deceptive acts, including unfair claim settlement practices. Private plaintiffs cannot sue an insurer under this chapter directly; their remedy, if any, lies in contract or tort theories, not in the Unfair Practices Act.
Why the other options are wrong
- B) The Act does not create a private right of action; only the Commissioner enforces it.
- C) The Act is a state statute enforced by California's Commissioner, not a federal antitrust regime.
- D) There is no insurer-vote mechanism; enforcement is the Commissioner's statutory duty.
Memory hook
Unfair Practices = the Commissioner's monopoly. Private lawsuits need a different theory.