P & C LA State Laws

How many credit hours of continuing education must a producer complete every renewal period?

24 (with at least 3 hours in ethics)

Which of the following statements is correct?

A. A producer license allows the licensee to transact all lines of insurance. B. A business entity acting as a producer is not required to be licensed as a producer. C. No person may act as a producer in LA unless licensed by the Dept. of Insurance. D. A producer may be licensed for only one line of authority. C

Which of the following statements is correct with respect to the Fraudulent Insurance Acts?

A. Any person who commits a fraudulent act is guilty of a felony and must be fined up to $5,000, imprisoned for up to 5 years, or both.

Which of the following is NOT an unfair claims practice?

A. Misrepresenting pertinent policy facts or provisions to claimants B. Refusing to pay a claim without investigating it C. Promptly acknowledging communications pertinent to a claim. D. Failing to attempt, in good faith, to prompt, fairly, and equitably settle a claim in which the insurer's liability has become reasonably clear. C

Which of the following is incorrect regarding commissions and compensations?

A. Renewal commissions may be paid to a person for selling or negotiating insurance in this state if the person was required to be licensed at the time of the sale or negotiation, and was licensed at that time. B. An insurer or producer may pay commissions to a duly licensed producer for negotiating, soliciting, or effecting insurance contracts. C. An insurer or producer may not pay a commission to a person for selling, soliciting, or negotiating insurance in this state if that person is required to be licensed and is not licensed. D. An insurer may pay a commission to an unlicensed producer who is appointed by the insurer. D

Which of the following correctly describes the role of agents under the LA Citizens Property Insurance Corporation?

An agent must have adequate errors & omission insurance and complete a training course offered by the LA Citizens Property Insurance Corp. to sell insurance issued by the Corporation.

When must licenses provide privacy notices to individual customers?

Annually

What is the cancellation/nonrenewal notice requirement if an insurer is cancelling a homeowners policy?

At least 20 days' written notice of cancellation and 30 days for nonrenewal

If a producer lies and tells their prospective consumers another insurance company is insolvent with the intent to put the insurer out of business, that is an example of which unfair trade practice?

Defamation

Which of the following statements is correct with regard to the FAIR plan?

Every insurer must be a member of the association as a condition of the authority to transact insurance.

The Insurance Commissioner is:

elected every 4 years.

Hearings are head:

within 30 days after the date a hearing is demanded.

Which of the following statements is true with respect to assumed names?

A. An agent may not transact business in LA under an assumed name. B. An agent who will be transacting business in LA under an assumed name must notify the Commissioner within 30 days after using the assumed name. C. An agent who will be transacting business in LA under an assumed name must notify the Commissioner prior to using the assumed name. D. An agent who will be transacting business in the District under an assumed name must notify the Commissioner upon the first renewal of his/her agent license. C

The Amendment of Policy provisions endorsement (PP 01 95) provides all the following, except:

A. An insured will not be covered for medical payments unless the insured has permission from the automobile owner to use the auto. B. Under Part D, the insurer will provide coverage for an insured's or family member's loaner vehicle while a covered auto is serviced or repaired. C. Under Part F, the insurer's right to recover payment is subordinate to the insured's right to be fully compensated. D. Liability coverage is changed from primary to secondary coverage. D

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

A. Fraud or material representation B. Substantial change in the risk assumed by the insurer C. Nonpayment of premium D. Change in location of the insured's property D

Which of the following statements is true with regard to the Standard Fire Policy forum?

A. Insurers have the option of using the standard fire insurance policy B. The standard fire policy must be used for reinsurance C. Combination standard fire policies are prohibited D. A fire policy is not required to include all provisions of the standard fire policy if coverage is as broad as the coverage under the standard fire policy. D

Which of the following statements is false with respect to the Insurance Guaranty Association?

A. Member insurers are assessed the amounts necessary to administer the program and pay covered claims. B. The purpose of the Act is to establish a method to pay claims that are unpaid as a result of the insolvency of a member insurer. C. Every insurer admitted to transact property and casualty insurance in LA has the option of being a member of the Association. D. Up to $500,000 per policy for claims; full amount for Workers' Comp.

Which of the following is correct regarding a temporary license?

A. The duration of a temporary license may not exceed 18 days. B. A temporary license may be issued for up to 12 months after successfully completing the licensing examination. C. A temporary license may not be issued to an employee of a business entity. D. A temporary license may be issued to the surviving spouse of a disabled or deceased producer. D

Which of the following statements is false regarding notifications of termination of an appointment?

A. The insurer must notify the Commissioner within 60 days if the termination is not grounds for denial, nonrenewal, probation, suspension, or revocation. B. The insurer must notify the Commissioner within 15 days if the termination is grounds for denial, nonrenewal, probation, suspension, or revocation. C. The insurer must mail a copy of the notification to the agent within 15 days after notifying the Commissioner. D. The agent may file written comments with the Commissioner within 30 days after receiving a copy of termination notification. A

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

A. an insurer may transact business in LA for a maximum of 30 days before obtaining a COA. B. Insurers are not required to have a COA in order to transact business in LA. C. It is unlawful for an insurer to transact any business in LA without a COA. D. Once an insurer has applied for a COA, it may transact business in LA until and if the application is denied by the Commissioner. C

With regard to loss payments for personal auto, all of the following are correct, except:

A. an insurer must pay a third party's expenses for alternative transportation if the third party is without the use of the vehicle for more than 5 working days. B. an insurer may require that repairs be made at a particular shop a condition for payment of an auto claim C. The commissioner may refuse to issue a license, or to suspend or revoke the license issued to any agent, broker, or solicitor due to a violation of this section. D. When all claim documents have been received by the insurer, it must process the payment within 3 days, except for Saturday, Sunday, and legal holidays. B

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

A. failing to pay child support B. Issued insufficient coverage to a customer through apparent authority C. Mishandling funds D. Cheated on an insurance examination B

The Auto Medical Payment Coverage Endorsement (CA 99 03) adds the following exclusions, except:

B. Property damage