Personal Lines Regulations
Which of the following is NOT an acceptable reason for an insurer to cancel a personal property insurance policy that has been in effect for more than 60 days? A) Cancellation by a previous insurer B) Fraudulent claims on an application C) Nonpayment of premiums D) Violation of safety regulations
A) Cancellation by a previous insurer
Which of the following is NOT a benefit provided by workers compensation policies? A) Death benefit B) Rehabilitation benefit C) Punitive damages benefit D) Medical benefit
C) Punitive damages benefit Workers Compensation benefits payable to an insured employee include medical benefits, disability income benefits, death benefit and rehabilitation benefits.
A transportation network company driver must maintain a primary automobile policy with minimum coverage of at least A$25,000/$50,000/$15,000. B$35,000/$75,000/$25,000. C$50,000/$100,000/$25,000. D$75,000/$100,000/$15,000.
A$25,000/$50,000/$15,000. Correct! A driver (or a TNC on the driver's behalf) must maintain a primary automobile insurance policy that has minimum coverage of at least $50,000 to any one person in any one accident; $100,000 to all persons in any one accident; and $25,000 for property damage arising out of the use of the motor vehicle in any one accident.
In Indiana, what is the minimum, required limit for Underinsured Motorist coverage? A) $50,000 B) $10,000 C) $25,000 D) $30,000
A) $50,000 Underinsured Motorist coverage must be at least $50,000.
A transportation network company (TNC) terminates its driver. How long must the TNC maintain records pertaining to the terminated driver? A) 1 year B) 3 years C) 5 years D) 10 years
A) 1 year All records relating to a terminated TNC driver must be maintained by the TNC for a period of at least 1 year.
Uninsured motorist bodily injury coverage pays for all of the following EXCEPT A) Down payment on a new vehicle. B) Medical expenses. C) Lost wages. D) General damages.
A) Down payment on a new vehicle. Uninsured motorist bodily injury coverage pays for medical expenses, lost wages, and other general damages when the insured or his or her passengers are injured in an accident caused by an uninsured moto
What is the name for the type of property damage coverage that protects the insured or the covered auto in an accident with someone who does not have coverage? A) Uninsured motorist B) Disaster coverage C) Calamity motor coverage D) Underinsured motorist
A) Uninsured motorist Uninsured motorist property damage coverage protects against damage to the insured or the covered auto when in an accident caused by an uninsured motorist. The limits for uninsured motorist coverage are set at the purchase of the auto policy. Some states require a deductible each time an auto insurance claim is filed.
The state requires that motorists maintain a certain insurance limit, per accident, for property damage liability. According to the Financial Responsibility Law, what is this limit? A) $5,000 B) $25,000 C) $50,000 D) $100,000
B) $25,000 According to the Financial Responsibility Law, motorists must maintain $25,000 in insurance, per accident, for property damage liability.
When cancelling a personal property insurance policy for nonpayment of premium, an insurer must provide an insured with a written notice of no less than A) 7 days B) 10 days C) 20 days D) 30 days
B) 10 days In the event an insurer decides to terminate a personal property insurance policy in response to nonpayment of premium, the insurer must provide the insured with a 10-day notice of cancellation
An insured's driver's license was suspended. As a result, his insurer wants to cancel his policy. How many days' notice must the insurer provide prior to cancellation? A) 10 days B) 20 days C) 30 days D) 60 days
B) 20 days In this case, the insurer is only required to provide 20 days' notice. If the cancellation was for nonpayment of premium, just 10 days' notice must be provided.
In Indiana, what are the minimum, required limits for Uninsured Motorist coverage? A) 35/60 B) 25/50 C) 15/20 D) 20/35
B) 25/50 Uninsured Motorists coverage must be equal to the state's financial responsibility limits, or $25,000/$50,000.
State law prohibits use of after-market parts in the repair of vehicles damaged in auto accidents. However, this provision only applies to vehicles that are less than A) 10 years old. B) 5 years old. C) 1 year old. D) 6 months old.
B) 5 years old. This provision only applies to vehicles within 5 years of the model year of the vehicle.
A personal auto policy may be cancelled for any reason if it has been in effect for less than A) 1 year. B) 60 days. C) 90 days. D) 6 months.
B) 60 days. For policies in effect less than 60 days, cancellation may be for any reason. After that, policies may only be cancelled for certain, specified reasons.
An individual is entitled to automobile liability coverage, but is unable to obtain coverage through ordinary markets. Where may he apply for such coverage? A) Indiana Property and Casualty Insurance Guaranty Association B) Indiana Automobile Insurance Plan C) Department of Insurance D) Uninsured Motorist Fund
B) Indiana Automobile Insurance Plan The Indiana Automobile Insurance Plan (AIP) provides coverage to applicants who are entitled to automobile liability coverage but who are unable to obtain insurance through ordinary markets.
When an insurer cancels an auto liability policy for a reason other than nonpayment of premium, the insurer must notify the insured of which of the following? A) An option to purchase auto insurance from a surplus lines insurer B) Possible eligibility for coverage under the automobile assigned risk plan C) Possible eligibility for coverage under the state Insurance Guaranty Association D ) A requirement to purchase uninsured/underinsured coverage from another provider
B) Possible eligibility for coverage under the automobile assigned risk plan When an automobile liability policy is cancelled for a reason other than nonpayment of premium, the insurer must notify the insured of his or her possible eligibility for coverage through another carrier or the automobile liability assigned risk plan.
The limits for uninsured motorist bodily injury coverage are established A) At least 30 days after the vehicle is purchased. B) When the auto policy is purchased. C) When the vehicle is purchased. D) At least 30 days before the vehicle is purchased.
B) When the auto policy is purchased. The limits for uninsured motorist coverage are set at the purchase of the auto policy.
When an abandoned mine collapsed, it destroyed a home valued at $300,000. What is the most that the insurer of the property could recover from the Mine Subsidence Fund? A$50,000 B$100,000 C$200,000 D$300,000
C$200,000 The Mine Subsidence Fund provides reinsurance for the insurer up to a maximum of $200,000 per structure insured. Review Content Next Question
What is the maximum deductible for uninsured motorist property damage coverage for damages caused by collision? A) $100 B) $250 C) $300 D) $500
C) $300 Insurers may offer uninsured motorist property damage coverage with a deductible of no more $300 of property damage caused by collision.
An insured is involved in a motor accident, resulting in a medical expense of $125,000. It's determined that the other driver was at fault. If the insured has underinsured motorist limits of $100,000, and the at-fault driver has bodily injury limits of $50,000/$100,000, how much would the insured's policy pay for medical expenses? A) $25,000 B) $50,000 C) $75,000 D) $125,000
C) $75,000 The insured's policy acts as excess over the underinsured driver's. The other driver will pay $50,000 (the per person limit), and the insured's policy will pay the difference ($125,000 - $50,000 = $75,000).
How much notice must an insurer give to an insured prior to the nonrenewal of a personal property insurance policy? A) 7 days B) 10 days C) 20 days D) 30 days
C) 20 days When nonrenewing a property insurance policy, an insurer must provide a named insured with a notice of nonrenewal, at least 20 days before the expiration of the current policy period.
When a Transportation Network Company arranges a ride for a customer, which of the following vehicles would be used? A) A limousine B) A company vehicle C) A driver's own vehicle D) A taxi
C) A driver's own vehicle A prearranged ride does not include the use of a taxi, a limousine or a vanpool van for transportation.
The financial responsibility requirements of Indiana may be met in several ways. Which of the following is NOT one of those? A) A bond issued in favor of the State B) A certificate of self-insurance C) A letter of credit from an approved bank D) An insurance policy with the required limits
C) A letter of credit from an approved bank The financial responsibility requirements may be met by providing an auto liability policy with the required limits, a bond issued in favor of the state of Indiana, or a certificate of self-insurance. A letter of credit from a bank is not acceptable.
A Transportation Network Company (TNC) does which of the following? A) Employs drivers and pays them a set weekly wage B) Provides taxi and limousine service to customers C) Connects riders with drivers that will transport them for a fee D) Provides the city with transportation advice
C) Connects riders with drivers that will transport them for a fee A Transportation Network Company (TNC) is a company that uses a digital network to connect riders to company drivers who will then provide a prearranged ride for a fee.
An automobile liability insurer cancels an insured's coverage. In which of the following situations would an insurer NOT be responsible for notifying the insured of possible eligibility for coverage under the Indiana Automobile Insurance Plan? A) The insured's policy was cancelled because the insured's driver's license was suspended. B) The insured's policy was cancelled due misstatements on an application. C) The insured's policy was cancelled because of nonpayment of premium. D) The insured is unqualified for coverage through the ordinary market.
C) The insured's policy was cancelled because of nonpayment of premium. This notice must be given whenever automobile liability coverage is cancelled for a reason other than nonpayment of premium.
The state requires that motorists maintain a certain amount of insurance, per accident, for bodily injury liability. According to the Financial Responsibility Law, what is this limit? A) $1,000 B) $10,000 C) $25,000 D) $50,000
D) $50,000 According to the Financial Responsibility Law, motorists must maintain $50,000 in insurance, per accident, for bodily injury liability.
Mine subsidence insurance is available to which of the following? A) Policyowners of commercial property insurance B) Former mine workers C) Low-income insureds who do not qualify for coverage on the normal market D) Anyone with basic fire coverage
D) Anyone with basic fire coverage Mine subsidence insurance is available to anyone with basic fire coverage, and can be purchased from property and casualty insurance agents.