Chapter 15. State Law

The Drive Other Car Coverage Endorsement (CA 99 10) is used to:

Add a named individual to an auto policy for a vehicle that the Named Individual does not own

'Producer' includes all of the following, except:

Adjuster

When do individual producer licenses expire?

April 30 of each even-numbered year

The Insurance Commissioner is

Elected every 4 years

With regard to examinations by the Commissioner, the Commissioner:

Must conduct a financial examination of an insurer at least once every 5 years

An insurer must file a notice of appointment with the Commissioner within:

15 days after the date the agency contract is executed

What is the minimum amount of notice an insurer must provide to a policyholder in advance of cancelling a commercial policy that has been in effect for more than 60 days for other than nonpayment of premium?

20 days

Which of the following cannot be used to show proof of financial responsibility?

A bank account with an adequate balance

With regard to termination and renewal of a license, which of the following is false?

A business entity producer's license expires April 30 of each even-numbered year

Which of the following statements is NOT correct regarding the Individual Named Insured Endorsement (CA 99 17)?

A non-owned auto that is a trailer is not covered

Which of the following statements is false regarding the Coastal Plan?

A person does not need to have an insurable interest in property to apply for coverage

An initial privacy notice is NOT required to be provided to:

A prospective customer

Who of the following is an employee under the Workers' Compensation Law?

A sole proprietor or partner

Which of the following is correct regarding a temporary license?

A temporary license may be issued to the surviving spouse of a disabled or deceased producer

When is the Notice of Information Practices required to be provided to existing customers?

Annually

A commercial property policy that has been in effect for more than 60 days may be cancelled for all of the following reasons, except:

Change in location of the insured's property

Which of the following statements is correct concerning the Louisiana Changes Endorsement (BP 01 30)?

Changes the binding decision for arbitration to be made by the umpire only

Anyone who makes a payment to unlicensed entity may be subject to:

Imprisonment for up to 3 years

The Louisiana Automobile Insurance Plan provides auto coverage for:

Individuals who have been unable to obtain auto insurance through the normal market

Which of the following is a covered injury?

Injuries by violence to the body's physical structure and disease or infections naturally resulting from such injury

Which of the following statements is NOT correct regarding policy forms?

Insurers have the option of adding a form number

The Commissioner may revoke, suspend, or refuse to renew a license for all the following, except:

Issued insufficient coverage to a customer through apparent authority

Which of the following statements is correct with respect to a Certificate of Authority?

It is unlawful for an insurer to transact any business in Louisiana without a Certificate of Authority

Which of the following correctly describes the practice of Twisting?

Misleading and convincing an insured to surrender, lapse, or exchange an existing policy for a different one, to the insured's detriment

Which of the following is NOT an unfair claims practice?

Promptly acknowledging communications pertinent to a claim

Which of the following statements is false concerning the Additional Insured and Loss Payee Endorsement (CA 04 13)?

The endorsement replaces the insured named in the schedule with the lessor

With regard to examinations, which of the following statements is NOT correct?

The expense of examination of an insurer or of any person is paid by the Department

Under the valued policy law:

The insurer's liability is the true value of the property

With regard to privacy regulation, a customer relationship is established when:

Which of the following cannot be used to show proof of financial responsibility?

Passive Unfair Claims Practices do not include failing to:

Affirm or deny coverage within a reasonable period without receipt of proof of loss