Insurance Regulations for Property
If a personal property policy is being cancelled for nonpayment of premium, what is the minimum required notice to the named insured? A10 days B15 days C30 days D45 days
A 10 days
Surplus lines brokers must submit affidavits that they have tried and failed to place the coverage with a Maryland insurer. The affidavit must be filed with the Commissioner within how many days of the end of the month in which the surplus lines was placed? A45 days B60 days C90 days D30 days
A 45 days
The entity that pays covered claims and helps prevent financial losses to claimants and policyowners when an insurance company becomes insolvent is AThe Insurance Guaranty Corporation. BAn insurance pool. CThe Department of Insurance. DThe Fair Credit Reporting Agency.
A The Insurance Guaranty Corporation
Question 6 of 15 Mr. G wants to become a bail bondsman in Maryland. What are the requirements in order for Mr. G to become a licensed bail bondsman? ATo become a bail bondsman, the requirements are the same as if Mr. G were to become a property or casualty producer. BPost a bond of $50,000 in a separate bail bond account CThere are no licensing requirements DBe appointed by the Insurance Commissioner and post a security bond of $50,000
A To become a bail bondsman, the requirements are the same as if Mr. g were to become a property or casualty producer
Insolvent Insurer
An insurer that is authorized to transact insurance business or issue surety bonds when the policy is issued, and against whom the State court has passed a final order of liquidation with a finding of insolvency
How long is a waiting period upon purchase of flood coverage through NFIP? A10 days B30 days C60 days DThere is no waiting period.
B 30 Days
What is the maximum duration of a binder? A30 days B45 days C60 days D90 days
B 45 days
In Maryland an insurer may not refuse to issue, cancel or non-renew a property and casualty insurance policy based solely on the geographic location of the property unless the insurer ANotifies the Commissioner at least 30 days in advance of the geographic location in question. BNotifies the Commissioner at least 60 days in advance of the geographic location in question. CNotifies the Commissioner and the client at least 45 days in advance of the geographic location in question. DNotifies the client at least 60 days in advance of the geographic location.
B Notifies the Commissioner at least 60 days in advance of the geographic location in question
Which of the following is true regarding single dwellings that are insured to at least 80% of the replacement value? AThey are subject to a $1,000 deductible. BThey are automatically provided with replacement cost coverage. CThey qualify for maximum compensation under the flood insurance program. DThey are excluded from the flood insurance policy.
B They are automatically provided with replacement cost coverage
Surplus lines brokers are required to post a surety bond with the Commissioner of insurance in an amount of at least A$20,000. B$5,000. C$10,000. D$15,000.
C $10,000
The regular National Flood Insurance Program would insure an eligible single-family dwelling for up to A$150,000. B$200,000. C$250,000. D$100,000.
C $250,000
The Property and Casualty Guaranty Corporation is obligated to pay the full amount of any claim between $100 and $300,000 if the claim occurs within what period of time? A90 days before the policy has expired B180 days before the policy has expired C30 days after the insurer has been declared insolvent and before the insurance policy has expired D45 days after an insurer has been declared insolvent and after the insurance policy has expired
C 30 days after the insurer has been declared insolvent and before the insurance policy has expired
If an insurer nonrenews a property policy because of the risks associated with the geographic area of the policy, the Commissioner must be notified at least how many days before the nonrenewal? A15 days B30 days C60 days D90 days
C 60 days
When a surety insurer terminates the appointment of a surety agent, it must notify the Commissioner and the Chief Clerk of the District Court of Maryland of the termination AWithin 15 days. BWithin 30 days. CImmediately. DWithin 5 business days.
C Immediately
Surety agents must maintain records of all bail bonds executed. These records must be made available for inspection by the Commissioner for at least A1 year after issuance of the surety liability. B1 year after application for the surety liability. C3 years. D1 year after termination of the surety liability.
D 1 year after termination of the surety liability
Johanna purchased a National Flood Insurance policy 10 days after her community entered an emergency program. When would her coverage be effective? A30 days after the application has been accepted B12:01 pm on the 5th day after the endorsement request has been mailed C5 days after the application and premium payment are mailed D12:01 am the day after the application and premium payment are mailed
D 12:01 am the day after the application and premium payment are mailed
An insurer may terminate a private passenger auto liability insurance policy in Maryland for all of the following reasons EXCEPT A3 non-fault accidents within the three years preceding renewal of the policy. BProof of fraudulent claims activity. CAn at fault accident 2 years before renewal. DBankruptcy 30 months prior to the renewal of the policy.
D Bankruptcy 30 months prior to the renewal of the policy
Insolvent
unable to pay debts owed