Insurance License Practice Questions
1,407 free practice questions with the answer and a written explanation on every one. Life & Health, Property & Casualty and Personal Lines, including questions written against specific state law.
California
31- A 45-year-old California applicant receives a newly issued life insurance policy that replaces an existing policy. How many days does the applicant have to examine and return the replacement contract for a full refund?
- A 62-year-old California consumer purchases a new whole-life policy that REPLACES her existing term policy. Under California free-look rules, how many days does she have from policy delivery to return the policy for a full refund?
- A California consumer enrolls in an HMO product offered by a 'health care service plan'. Which California regulator has primary jurisdiction over that HMO?
- A California domestic life insurer issues a block of universal life policies in 2024. Which valuation methodology is required for these new issues under California's Standard Valuation Law as currently in force?
- A California domestic life insurer plans to enter a large reinsurance treaty with its parent holding company's offshore affiliate. Before the transaction can occur, what notice must the insurer make to the California Insurance Commissioner?
- A California life-only licensed producer wants to start selling variable universal life policies. What additional license, if any, must the producer obtain?
Florida
32- A client purchases a whole life policy under which all premiums will be fully paid by age 65, yet coverage continues for the rest of the insured's life. Which product does this describe?
- A client wants the ability to adjust premium payments and the death benefit amount after policy issue, while the cash value earns interest at a rate periodically declared by the insurer. Which policy best matches these needs?
- A Florida individual life policyholder has owned her policy for three years and forgot to pay this month's premium on its due date. Which provision protects her coverage during the period after the due date?
- A life insurance policy owner wants to assign all rights under her policy to her cousin as collateral for a loan. What is generally required for the assignment to be effective against the insurer?
- A wealthy investor offers to pay all premiums on a new $5 million policy on the life of an elderly stranger in exchange for an agreement that the policy will be transferred to the investor after the two-year contestable period. Under Florida law, this arrangement is best characterized as:
- After an insured dies, the named beneficiary submits a claim. The insurer requests a certified death certificate and proof of beneficiary identity before paying. The insurer's right to require these items reflects which characteristic of the insurance contract?
Georgia
32- A 52-year-old Georgia annuitant takes a $20,000 non-qualified withdrawal of pre-tax earnings from a deferred annuity. Beyond ordinary income tax, what additional federal penalty typically applies, and does Georgia impose an extra state surtax?
- A Georgia consumer signs an application for a new annuity on March 1, and the contract is delivered on March 20. Under O.C.G.A. § 33-28-6, what is the LATEST date on which the consumer may return the contract for a refund of the premium?
- A Georgia employee whose group life coverage terminates upon leaving employment exercises the statutory conversion right. Which statement accurately describes the conversion privilege?
- A Georgia group life insured wishes to assign her group life certificate to an irrevocable life insurance trust (ILIT) for estate planning. Which statement best reflects the Georgia statutory framework?
- A Georgia life insurance policy may exclude death by suicide for what maximum period from the policy's date of issue?
- A Georgia life policy beneficiary elects to receive proceeds under the 'interest only' settlement option. What is the defining feature of this option?
Illinois
41- A 55-year-old Illinois annuity owner takes a $20,000 taxable distribution from a non-qualified deferred annuity. Which statement most accurately reflects Illinois treatment of the early-withdrawal penalty?
- A 72-year-old Illinois consumer is replacing a 6-year-old deferred annuity with a new indexed annuity. Which combination of Illinois regulatory requirements applies in addition to the producer's general code-of-conduct duties?
- A producer arranges an Internal Revenue Code Section 1035 exchange of an in-force fixed annuity for a new indexed annuity issued by a different Illinois carrier. Which statement best describes how 50 Ill. Adm. Code 917 applies?
- After how many years from the date of issue does an Illinois individual life policy become incontestable under 215 ILCS 5/224(1)(b), except for nonpayment of premiums?
- An Illinois consumer purchases a deferred annuity that REPLACES an existing annuity. Under 50 Ill. Adm. Code 917, what is the minimum free-look period the new annuity must provide?
- An Illinois consumer transfers a non-qualified deferred annuity to a new carrier as an IRC § 1035 exchange. Under Illinois law, which regulation governs the producer's replacement-notice and conservation duties?
MA
36- 211 CMR 34.00's disclosure, notice, and recordkeeping architecture most closely tracks which NAIC model regulation?
- A MA producer recommends that a client surrender an existing deferred annuity and use the proceeds to fund a new deferred annuity via an IRC §1035 exchange. Which MA requirements are most directly triggered?
- A Massachusetts-domiciled life insurer's filed policy form references both M.G.L. c. 175 §144 and the MA Replacement Regulation. Which 211 CMR citation should appear for the replacement framework?
- A Massachusetts examinee must match the statute to its subject. Which pairing is INCORRECT under M.G.L. c. 175?
- A Massachusetts life policy has been in force 4 years when the insured dies. The insurer then discovers the insured understated his age by 5 years on the application. Under M.G.L. c. 175 §132, how must the insurer handle the claim?
- A Massachusetts resident purchases a new individual life policy that replaces an in-force MA life policy. Under the interaction between M.G.L. c. 175 §187H and 211 CMR 34.06, what free-look period must the new policy provide and from when does it run?
MI
37- A 55-year-old MI resident takes a non-qualified annuity withdrawal of taxable gain. What additional Michigan surtax applies on top of the 10% federal early-withdrawal penalty?
- A deferred fixed annuity issued in Michigan in 2025 lapses after the surrender charge period. Which Michigan statute primarily governs the minimum nonforfeiture amount the insurer must pay the contract owner?
- A Michigan applicant signs a replacement life application on day 0; the existing insurer receives notice on day 4 and delivers an in-force illustration on day 25. The new policy is issued on day 35. When does the consumer's free-look on the new policy expire?
- A Michigan client exchanges one non-qualified deferred annuity for another under IRC Section 1035. For purposes of MI's annuity best-interest rule, this transaction is treated as:
- A Michigan investor with no relationship to a senior consumer pays the senior to apply for a $1M life policy that will be assigned to the investor at issue. Under MCL 500.2207, this arrangement is BEST characterized as:
- A Michigan life policy is governed by an employer's ERISA welfare plan. The participant divorces but never updates the beneficiary form naming the former spouse. Under controlling law, who is most likely to receive the death benefit?
National
43- A 25-year-old purchases a whole life policy with a Guaranteed Insurability Option (GIO) rider. Which of the following correctly describes how the rider operates?
- A 30-year decreasing term policy is sold as mortgage protection on a 30-year amortizing home loan. Across the policy's life, the:
- A 30-year-old buys a 20-year level term policy for $500,000 and her colleague buys a $500,000 Annually Renewable Term (ART) policy. Over the 20-year horizon, the ART premium structure will most likely:
- A 30-year Return-of-Premium (ROP) term policy reaches the end of its term. The insured is alive; the carrier returns all $42,000 of premiums paid as the ROP benefit. For federal income tax purposes, the $42,000:
- A 35-year-old buyer chooses between an ordinary (straight) whole life policy and a 20-pay whole life policy with the same face amount. Compared with ordinary whole life, the 20-pay version will have:
- A §403(b) tax-sheltered annuity is available to employees of:
New York
41- A 55-year-old NY resident takes a $20,000 non-qualified withdrawal of gain from a deferred annuity. What is the New York-specific tax consequence beyond the federal 10% IRC § 72(q) early-withdrawal penalty?
- A New York carrier completes a Reg 60 replacement transaction. The producer's compliance officer asks how long the insurer must retain the Important Notice, Disclosure Statement, sales material, and the proof that the existing insurer received the 10-day notice. Which period correctly states the insurer's record-retention obligation under Reg 60?
- A New York consumer walks into an insurer's call center, asks specifically by name for a 5-year MYGA, declines to provide suitability information, and asks to buy. The representative offers no advice and processes a self-directed sale. Under Reg 187, which statement BEST describes the producer's / insurer's posture?
- A New York-licensed life agent wants to begin selling variable life insurance and variable annuities. In addition to the NY life license, what additional credential does NY Ins. Law § 2103 require?
- A New York producer is taking an application for a new whole life policy that will replace an existing in-force life policy. Under Regulation 60 (11 NYCRR 51), what document must the producer present and obtain the applicant's signature on at or before the time of application?
- A New York producer recommends an indexed annuity to a 58-year-old consumer in 2026. Under Reg 187, how long must the producer and insurer retain the suitability information collected and the documentation supporting the recommendation?
NJ
42- A New Jersey applicant signs a replacement life application on day 0; the replacing insurer mails the certified Notice Regarding Replacement to the existing insurer on day 4. The new policy is delivered on day 40. When does the consumer's free-look on the new replacement policy expire under N.J.A.C. 11:4-2?
- A New Jersey examinee must match the statute to its subject. Which pairing is INCORRECT under N.J.S.A. Title 17B and related NJ insurance law?
- A New Jersey life policy has been in force 4 years when the insured dies. The insurer then discovers the insured understated his age by 5 years on the application. Under N.J.S.A. 17B:25-3, how must the insurer handle the claim?
- A New Jersey resident purchases a new individual life policy that replaces an in-force NJ life policy. Under the interaction between N.J.S.A. 17B:25-3 and N.J.A.C. 11:4-2, what free-look period must the new policy provide and from when does it run?
- A NJ-domiciled life insurer's filed policy form references both N.J.S.A. 17B:25 and the NJ Replacement Regulation. Which N.J.A.C. citation should appear for the replacement framework?
- An NJ client exchanges one non-qualified deferred annuity for another under IRC Section 1035. For purposes of NJ's annuity rules, this transaction is treated as:
Ohio
42- A 55-year-old OH resident takes a non-qualified annuity withdrawal of taxable gain. What additional Ohio surtax applies on top of the 10% federal early-withdrawal penalty?
- A deferred fixed annuity issued in Ohio in 2025 lapses after the surrender charge period. Which Ohio statute primarily governs the minimum nonforfeiture amount the insurer must pay the contract owner?
- After a replacement application is taken, within how many working days must the replacing insurer send written notice to each existing insurer under OAC 3901-6-05?
- After how many years from issue does the incontestability clause bar an Ohio life insurer from contesting the policy except for nonpayment of premium?
- An Ohio applicant signs a replacement life application on day 0; the existing insurer receives notice on day 4 and delivers an in-force illustration on day 25. The new policy is delivered on day 40. When does the consumer's free-look on the new replacement policy expire?
- An Ohio client exchanges one non-qualified deferred annuity for another under IRC Section 1035. For purposes of OH's annuity best-interest rule, this transaction is treated as:
Pennsylvania
38- A 55-year-old PA resident takes a non-qualified distribution from a deferred annuity. Which statement most accurately describes the tax exposure?
- A PA life insurance policy issued under 40 P.S. § 510 discovers at the insured's death that the insured's age was understated on the application. What is the proper claim adjustment?
- A PA life policy is in its 18th month when the insured dies by suicide. The application contained an unintentional material misstatement of age. Under PA's mandatory provisions, which outcome is most accurate?
- A PA producer arranges an annuity-to-annuity 1035 exchange for a client. Which PA rule chapter applies to the transaction even though it is tax-free under IRC § 1035?
- A PA producer sells a NON-replacement individual life policy. Under PA standard practice, what is the minimum free-look (examination) period the policyowner must receive?
- A Pennsylvania producer wants to sell variable annuities. Beyond a PA life producer license, what additional credentials are required?
Texas
37- A 20-year Return of Premium term policy charges a higher premium than a standard level term policy. The insured survives the full 20 years. What does the insured receive?
- A $200,000 whole life policy includes an Accidental Death and Dismemberment rider with a double indemnity provision. The insured dies in an automobile accident. How much will the beneficiary receive?
- A 68-year-old retiree deposits a lump sum and begins receiving monthly income checks within 30 days, with payments guaranteed regardless of market performance. Which annuity quadrant describes this product?
- A client pays $100,000 in a single lump sum to fund a whole life policy. The IRS determines the policy fails the 7-pay test. Which tax consequence applies to cash value withdrawals during the insured's lifetime?
- A client purchases a 'Life Paid-Up at 65' whole life policy at age 35. What is true about this policy?
- A covered employee is laid off and elects COBRA continuation coverage. For how long is the employee entitled to continue group health coverage under federal COBRA rules?
California
30- A California admitted homeowners insurer has experienced a spike in CDI complaints alleging slow claim handling after a wildfire. Under Ins. Code § 730, what type of CDI examination is most appropriate, and what does it review?
- A California auto insurer files a class plan that uses ZIP code as the single largest rating factor — weighted more heavily than driving record. Under Prop 103, what is the regulatory outcome?
- A California-domiciled property insurer is organized so that the insureds collectively own the company, are entitled to dividends from underwriting profits, and may be subject to assessments if losses exceed surplus. Under the California Insurance Code, this organizational form is best described as:
- A California homeowner believes her insurer underpaid a fire claim. Under the CDI's consumer-services framework (Ins. Code § 12921.1), what is the FIRST formal step she can take with the Department?
- A California retail broker wants to place commercial property coverage with a non-admitted surplus line carrier because the admitted market quoted excessive rates. Under Ins. Code § 1763, what must occur before the surplus line placement is lawful?
- A commercial property policy in California contains a 'protective safeguards warranty' requiring the insured to maintain a functioning central-station fire alarm at all times. The alarm is offline for 36 hours due to a contractor's accidental severing of the alarm line; during that window, a small kitchen fire occurs causing $40,000 damage. Under Ins. Code §§ 440-449, how should the breach be analyzed?
Florida
38- A bakery suffers a covered fire that forces it to close for 45 days while repairs are made. The Business Income coverage form will pay for lost income during which period?
- A Builders Risk policy on a commercial building project will automatically terminate WITHOUT endorsement when:
- A collector schedules a painting on an inland marine floater using an 'agreed value' endorsement at $80,000. The painting is stolen. Which statement best describes how the insurer settles the claim?
- A commercial building has a replacement cost of $1,000,000. The owner insures it for $600,000 on a policy with an 80% coinsurance clause. A fire causes $400,000 in damage. What is the insurer's maximum payment (ignoring any deductible)?
- A commercial building has been vacant for 75 days when a vandal breaks in and causes $30,000 in damage. The commercial property policy contains a standard vacancy clause. Which outcome is most accurate?
- A customer slips on a wet floor in a grocery store, then the store's ad agency posts a defamatory social media ad about a competitor, and a delivery driver is hurt on the premises and the store pays his medical bills without a lawsuit. Which CGL coverage part applies to each event respectively?
Georgia
43- A Georgia P&C agency collects premium from an insured but has not yet remitted it to the carrier. Under O.C.G.A. § 33-23-35, how must those funds be handled?
- A Georgia personal auto insurer files a rule charging a 15% surcharge solely because the applicant lives in a ZIP code with a high percentage of minority residents. Under O.C.G.A. § 33-9-4, this filing is most likely:
- A Georgia producer receives notice of a contested-case hearing before the OCISF for alleged twisting in violation of the Unfair Trade Practices Act. Under O.C.G.A. § 50-13-13, which procedural right is the producer entitled to at the hearing?
- A Georgia property and casualty producer issues an oral binder to a client for a commercial building. Before a written policy is issued, the building suffers a fire loss. Under Georgia law, which statement most accurately describes the legal effect of the oral binder?
- A Georgia resident P&C producer must complete how many continuing education hours during each two-year license cycle, and how many of those must be in ethics?
- A producer licensed in Alabama applies for a Georgia non-resident P&C license under O.C.G.A. § 33-23-16. Which condition is the Commissioner authorized to require before issuing the license?
Illinois
43- A producer licensed in good standing in Indiana applies for an Illinois non-resident P&C license. Under 215 ILCS 5/500-40, which condition primarily governs issuance?
- Administrative hearings before the IDOI Director on license discipline matters are conducted under which Illinois statutory framework?
- Although Illinois operates an open competition system, what does the filed-rate doctrine generally bar in private litigation involving insurance pricing?
- An Illinois homeowner sells her house on March 1 but the policy is not formally cancelled. A fire destroys the dwelling on March 15. Under 215 ILCS 5/229.2, which statement most accurately describes the former owner's right to recover?
- An Illinois personal auto insurer changes its rating territories and increases base rates by 8% for the urban Cook County territory. Under Illinois law, what filing or approval step is required before the new rates may be used?
- An insurer incorporated under the laws of Wisconsin and licensed to transact business in Illinois is classified under the Illinois Insurance Code as which type of insurer with respect to Illinois?
MA
39- A Massachusetts resident P&C producer must complete how many total continuing education hours each three-year license cycle, and how many of those must be in ethics?
- A risk retention group (RRG) chartered in another U.S. state that wishes to write commercial liability coverage in Massachusetts must:
- After the MA Commissioner of Insurance issues a final agency decision following an adjudicatory hearing, where does an aggrieved licensee seek judicial review, and what standard governs review of the agency's factual findings?
- After the MA DOI conducts a market conduct examination of an insurer, when does the final examination report typically become available to the public?
- Before the MA DOI may promulgate a new regulation of general applicability in 211 CMR, which procedural step is required under the State Administrative Procedure Act?
- Before transacting the business of insurance in Massachusetts, an insurer must first obtain which authorization from the Division of Insurance?
MI
42- A Michigan-domiciled insurer is part of a holding company system. Under MCL 500.1301+, what filing must the insurer make annually with DIFS regarding its corporate group?
- A Michigan-domiciled P&C insurer is found financially impaired. Under MCL 500.8101+, what is the typical first formal court-supervised remedy the DIFS Director seeks?
- A Michigan insurer's claims adjuster develops reasonable belief that a homeowners claim is fraudulent. Under MCL 500.4507, what course does the statute authorize?
- A Michigan-licensed P&C producer begins soliciting policies for an admitted insurer. Under MCL 500.1208, the insurer's obligation to file an appointment with DIFS is generally triggered:
- A Michigan producer collects $4,000 in premium from a client for an admitted insurer. Under MCL 500.1207, the producer must:
- A Michigan producer is convicted of felony embezzlement unrelated to insurance. Under DIFS authority, what is the most likely outcome for the producer's license?
National
42- A bakery suffers a covered fire that destroys its mixers; the owner rents temporary equipment so the shop can reopen in days rather than weeks, avoiding a longer suspension of operations. Which ISO Commercial Property time-element coverage responds PRIMARILY to those temporary-equipment rental costs?
- A commercial building has a replacement cost of $1,000,000. The policy carries an 80% coinsurance clause with a $600,000 limit. A covered fire causes $200,000 of damage. After applying coinsurance (ignore the deductible), what is the insurer's payment?
- A commercial insured paid the full annual premium of $4,800 and voluntarily cancels the policy 90 days into the term. The carrier applies a short-rate cancellation. Compared to a pro-rata refund, the short-rate refund will be:
- A commercial property policy includes a warranty that the insured will maintain a functioning central-station burglar alarm throughout the policy period. The insured allows the alarm contract to lapse mid-term, and a theft occurs while the alarm is inoperative. How does this warranty operate?
- A commercial property policyholder activates the Agreed Value option on a CP 00 10 form. Which of the following best describes the practical effect on a partial loss?
- A corporate executive is furnished a company car as her only regular vehicle and does not personally own an auto. To extend her business-auto liability coverage to non-owned autos she occasionally drives (such as a friend's car), which endorsement should be attached to the company's Business Auto policy on her behalf?
New York
40- A Manhattan-based manufacturing company with $200 million in annual revenue and a full-time risk manager wants to obtain a customized property/business interruption program from a NY-admitted insurer outside the standard filed rates. Which NY mechanism allows the carrier to write this risk without filing the rate or form?
- A New York-domiciled P&C insurer discovers a ransomware attack that encrypted policyholder PII. Under 23 NYCRR 500.17, what notice obligation runs to the Superintendent, and within what time?
- A New York-domiciled P&C insurer is part of a holding company system. Under NY Insurance Law § 1505, what must the domestic insurer file with DFS regarding transactions with affiliates within the holding company group?
- A New York-licensed insurance broker was convicted of a Class E felony (grand larceny in the fourth degree) for misappropriating client premium. Under NY Insurance Law § 2110, what is the most likely DFS action regarding the broker's license?
- A New York-licensed P&C producer is suspected of engaging in unfair trade practices in connection with the sale of homeowners policies. Under NY Insurance Law § 2407, what is the Superintendent's primary procedural tool to halt the conduct quickly while an enforcement case proceeds?
- A New York Public Adjuster licensed under NY Ins. Law § 2108 is authorized to act on behalf of which party in a first-party property claim?
NJ
43- A New Jersey producer collects $4,000 in premium from a client for an admitted insurer. Under the Producer Licensing Act and N.J.A.C. 11:17C, the producer must:
- A New Jersey resident P&C producer must complete how many total continuing education hours each two-year license cycle, and how many of those must be in ethics?
- A resident producer from another state in good standing applies for a New Jersey non-resident producer license. Under N.J.S.A. 17:22A-34 and NAIC reciprocity, DOBI will generally:
- A risk retention group (RRG) chartered in another U.S. state that wishes to write commercial liability coverage in New Jersey must:
- After a DOBI market conduct examination, when does the final examination report typically become available to the public?
- After the DOBI Commissioner issues a final agency decision following an OAL hearing, where does an aggrieved licensee seek judicial review, and what is the standard of review applied to factual findings?
Ohio
43- A resident producer from another state in good standing applies for an Ohio non-resident producer license. Under R.C. 3905.07 and NAIC reciprocity, ODI will generally:
- An Ohio-domiciled insurer is part of a holding company system. Under R.C. 3901.32+, what filing must the insurer make with ODI regarding its corporate group?
- An Ohio-domiciled P&C insurer is found financially impaired. Under R.C. Chapter 3903, what is the typical first formal court-supervised remedy the ODI Director seeks?
- An Ohio insurer's claims adjuster develops a reasonable belief that a homeowners claim is fraudulent. Under R.C. 3999.42, what is the adjuster's primary obligation?
- An Ohio-licensed P&C producer begins soliciting policies for an admitted insurer. Under R.C. 3905.20, the insurer's obligation to file an appointment with ODI is generally triggered:
- An Ohio producer collects $4,000 in premium from a client for an admitted insurer. Under R.C. 3905.14, the producer must:
Pennsylvania
40- A PA producer tells a homeowner that her current insurer is 'about to go bankrupt' to persuade her to switch carriers, even though the producer has no reasonable basis for that statement. Which UIPA-defined unfair act has the producer committed under 40 P.S. § 1171.5?
- A PA producer's license is revoked by a final order of the Insurance Commissioner. To which court does the producer appeal, and under what standard of review?
- A PA WC insurer adopts the PCRB-filed prospective loss costs and applies a 1.45 loss cost multiplier (LCM). Which statement most accurately describes the regulatory status of the resulting rates?
- A Pennsylvania P&C producer is found to have intentionally misrepresented coverage to a client to induce purchase. Under 40 P.S. § 310.11, which sanction is the Insurance Commissioner authorized to impose in addition to license discipline?
- A Pennsylvania producer collects $4,200 in policyholder premium that is owed to the insurer. Under 40 P.S. § 310.96, how must the producer handle those funds?
- A Pennsylvania property and casualty producer orally binds homeowners coverage by telephone for a new client whose mortgage closes the same afternoon. Under Pennsylvania law, the oral binder is:
Texas
40- A 10-year-old roof originally cost $20,000 to install and has a 20-year useful life. The current replacement cost is $25,000. The home's market value is $180,000. What is the Actual Cash Value (ACV) of the roof?
- A CGL policy has a $1,000,000 per occurrence limit and a $2,000,000 general aggregate. During the policy year, there are three separate occurrences each causing $900,000 in covered losses. How much does the insurer pay in total?
- A claimant sues for $50,000 in medical bills, $20,000 in lost wages, $30,000 for pain and suffering, and $200,000 in punitive damages. Which category do the medical bills and pain and suffering each belong to?
- A commercial building has a replacement cost of $500,000. The owner insures it for $300,000 with an 80% coinsurance clause. A covered fire causes $120,000 in damage. How much will the insurer pay (ignoring deductible)?
- A commercial building has a replacement cost of $500,000. The policy requires 80% coinsurance. The insured carries $320,000 of coverage. A fire causes $100,000 in damage (no deductible). How much does the insurer pay?
- A condo unit owner has an HO-6 policy. Which property interests does Coverage A under HO-6 insure?
California
39- A California applicant for auto insurance was first licensed in Nevada in March 2022 and moved to California in February 2026 keeping continuous licensure. Her MVR shows one 1-point speeding ticket from August 2024 and a Veh. Code § 23152 DUI conviction from January 2015 (no other convictions). On May 1, 2026, does she qualify for the Good Driver Discount under Cal. Ins. Code § 1861.02?
- A California auto insurer files a class plan that adds a surcharge for unmarried male drivers under 25 and a credit-based pricing tier. Under Cal. Ins. Code § 1861.02 and supporting regulations, which statement is correct?
- A California auto insurer files a rate application seeking a 9% increase, attaches a variance request to deviate from the standard generic determination of investment income under 10 CCR § 2644.20, and is met with an intervenor petition. Under Cal. Ins. Code §§ 1861.05 and 1861.10 and CDI rate-application regulations, which is the MOST accurate description of what happens next?
- A California auto policy contains a valid named driver exclusion for the insured's adult son with multiple DUIs. The son borrows the covered vehicle without permission and causes an accident injuring a third party. Which statement most accurately describes the policy's response under Cal. Ins. Code § 11580.1(c)?
- A California auto policy lists two vehicles, each with 100/300 BI and 100/300 UM/UIM. The named insured executed a § 11580.1(c) named-driver exclusion against her husband. The husband, a permissive user despite the exclusion, is struck by an uninsured motorist while driving the family's second vehicle and sustains $250,000 in proven damages. He demands UM benefits, arguing the named-driver exclusion does not bar HIS UM claim and that he can stack 100/300 plus 100/300 to recover $200,000. Which response is correct under Cal. Ins. Code §§ 11580.1(c), 11580.2, and 11580.2(p)?
- A California driver convicted of a DUI must file proof of financial responsibility with the DMV. Which form does the driver's insurer file electronically to evidence an active liability policy meeting minimum limits, and what is the default filing period?
Georgia
48- A Georgia consumer seeks coverage for a coastal home that no admitted insurer will write. Which Georgia license is required to place that risk with a non-admitted insurer?
- A Georgia driver allows her personal auto liability policy to lapse without obtaining replacement coverage. Under O.C.G.A. § 40-2-137, the most direct statutory consequence is:
- A Georgia HO-3 policy was issued 45 days ago. The insurer's underwriter wants to cancel because a subsequent inspection revealed a previously undisclosed wood stove. Under O.C.G.A. § 33-24-44, what is the insurer permitted to do?
- A Georgia homeowner discovers extensive mold growth behind a wall following a covered plumbing leak. The HO-3 policy contains a $10,000 mold sublimit endorsement. Which statement best describes how the insurer should adjust the loss?
- A Georgia homeowner's HO-3 policy is set to expire on June 30. The insurer has decided not to renew. By what date must the insurer send the written non-renewal notice to comply with O.C.G.A. § 33-24-46?
- A Georgia household insures three private passenger autos on three separate policies, each with 50/100 UM. The insured is injured by an uninsured driver while operating one of the vehicles. What UM stacking outcome is permitted under Georgia law?
Illinois
50- An Illinois applicant has been declined by three voluntary auto carriers due to a poor driving record. Through what mechanism can the producer secure compulsory liability coverage?
- An Illinois auto insurer decides not to renew a policy at its annual anniversary. Under 215 ILCS 5/143.17, the insurer must mail written notice of non-renewal at least how many days before the expiration date?
- An Illinois auto policy contains a properly executed named driver exclusion endorsement removing the policyholder's adult son from coverage. The son drives a covered vehicle and causes a serious accident. The policy will:
- An Illinois auto policy contains a properly executed named driver exclusion for the insured's adult son, who has a poor MVR. The son borrows the car and causes a serious accident. How will the policy respond to a third party's bodily injury claim?
- An Illinois auto policy has been in force for 14 months. The insurer wishes to cancel mid-term for a reason other than non-payment. How many days written notice must the insurer give the named insured?
- An Illinois auto policy lists three vehicles, each with UIM limits of $100,000/$300,000. The insured is injured by an underinsured driver. Under properly drafted anti-stacking language permitted by 215 ILCS 5/143a-2(4), the maximum UIM available is:
MA
42- A Cape Cod homeowner with an MPIUA FAIR Plan dwelling policy suffers $80,000 of damage when storm surge floods the first floor. How does the FAIR Plan respond?
- A MA HO-3 insured is displaced after a covered fire loss. Coverage D Loss of Use pays additional living expense up to what default percentage of Coverage A?
- A MA homeowner wants open-perils coverage on both the dwelling AND personal property under an ISO form with MA amendatory. Which form should be quoted?
- A Massachusetts auto-accident plaintiff incurs $3,200 in chiropractic bills with no objective imaging findings, no enumerated injury, and his treating physician concedes much of the treatment was duplicative. How is the c. 231 §6D Tort Threshold most likely analyzed?
- A Massachusetts insured carries 100/300 BI and has elected 100/300 underinsured motorist coverage under c. 175 §113L. He sustains $250,000 in covered injuries (Tort Threshold met by a fractured femur) from an at-fault driver with 25/50 BI and recovers the $25,000 per-person BI limit. What is the maximum UIM amount payable from his own carrier?
- A Massachusetts insured carrying only the compulsory 25/50 UM limits is struck by a hit-and-run driver and incurs $30,000 in bodily injury damages above her PIP recovery. How much can she recover from her own UM coverage under M.G.L. c. 175 §113L?
MI
49- A claimant suffers an MRI-confirmed disc herniation that prevents her from playing tennis but allows her to continue her sedentary office job with minor accommodations. Under McCormick v. Carrier, which factor most strongly supports meeting the serious-impairment threshold?
- A homeowner in Detroit with an MBPIA dwelling policy suffers a basement flood from an overflowing river. Where does coverage primarily come from?
- A licensed Michigan P&C producer accepts a personal auto application that was actually solicited by an unlicensed neighbor in exchange for a referral cut. Which Insurance Code provision is most directly implicated?
- A Michigan HO-3 insured is displaced after a covered fire. Coverage D Loss of Use pays additional living expense up to what default percentage of Coverage A?
- A Michigan HO-3 typically limits mold remediation arising from a covered water loss through which mechanism?
- A Michigan homeowner wants open-perils coverage on both the dwelling AND personal property under the MI Standard Fire Policy floor. Which form should be quoted?
National
51- A condominium unit-owner buys an HO-6 policy. The condo association's master policy covers the building shell on a 'bare-walls' basis. Which coverage on the HO-6 is most directly designed to fill the gap between the master policy and the unit-owner's interest?
- A fire renders an HO-3 insured's home uninhabitable for four months. Coverage D (Loss of Use) on the policy is set at the standard HO-3 default percentage of Coverage A. Which statement is MOST accurate about what Coverage D reimburses?
- A homeowner carries an ISO HO-3 policy with $400,000 Coverage A and accepts default sub-limits. A detached garage on the same lot is destroyed by fire. What is the maximum Coverage B (Other Structures) limit, absent an increased-limit endorsement?
- A landlord buys an ISO DP-1 Basic Form on a rental house and elects Coverage C — Personal Property for $25,000 to insure landlord-owned appliances and lawn equipment. Burglars break in and steal the refrigerator and lawnmower. How does the unendorsed DP-1 respond?
- A landlord wants to add personal liability and medical payments coverage to a Dwelling policy so that tenant slip-and-fall claims at the rental property are insured. Which ISO endorsement is typically added to a DP form to attach Section II Liability coverages analogous to those in a Homeowners policy?
- A landlord's ISO DP-3 has Coverage A of $400,000. A covered fire destroys the rental dwelling; the tenant's lease called for $2,500/month and the dwelling will take 8 months to repair. What is the maximum the policy will pay under Coverage D — Fair Rental Value, assuming no endorsement modifies the default limit?
New York
49- A Brooklyn homeowner asks her NY producer to bind NYPIUA coverage because the property is in a coastal ZIP code. What documentation does NYPIUA require to confirm the applicant is eligible for the FAIR Plan?
- A homeowner in Queens experiences a major kitchen fire and wants to hire a representative to negotiate the property-damage claim with her insurer on her behalf for a contingent fee. Under New York law, who is properly licensed to act in this capacity?
- A homeowners insurer sells personal-auto coverage in New York entirely through a direct-mail and online platform without using local face-to-face producers. Which of the following is TRUE under New York's direct-response licensing rules?
- A New York broker without a particular specialty appointment refers an unusual personal inland-marine fine-arts schedule to another NY licensed broker who places it with an admitted insurer and earns the commission. The originating broker receives a portion of the commission for the referral. Under NY rules governing sub-broker arrangements, this is permissible only if:
- A New York driver with three at-fault accidents and a recent DWI conviction has been declined for voluntary auto coverage by every carrier she has approached. Which mechanism allows her to obtain a compulsory NY auto policy?
- A New York HO-3 policy has been in force for nine months when the carrier discovers a material misrepresentation made on the application. Under N.Y. Ins. Law § 3425, the carrier may cancel mid-term, but the minimum advance written notice the insured must receive is generally:
NJ
49- A licensed New Jersey P&C producer accepts a personal auto application that was actually solicited by an unlicensed neighbor in exchange for a referral cut tied to each sale. Which NJ statute is most directly implicated against the licensed producer?
- A New Jersey driver who does not own a vehicle but must demonstrate financial responsibility to maintain driving privileges most appropriately satisfies that obligation by purchasing which of the following?
- A New Jersey personal lines producer collects $2,400 in homeowners premium from a client on Monday but the carrier's net premium statement is not due for 20 days. Which practice complies with N.J.A.C. 11:17A fiduciary duties?
- A New Jersey personal lines producer collects a homeowners premium from a client. How must the producer handle those funds under N.J.A.C. 11:17A?
- A New Jersey personal lines producer offers a $50 gift card to any customer who binds a homeowners policy at quoted premium. Which producer rule does this most directly violate?
- A New Jersey resident producer is suspended in another state for misappropriating premium. Within what period must the producer report the action to DOBI under N.J.S.A. 17:22A-43?
Ohio
47- A homeowner in Cleveland with an Ohio FAIR Plan dwelling policy suffers a basement flood from an overflowing Cuyahoga River tributary. Where does coverage primarily come from?
- A licensed Ohio P&C producer accepts a personal auto application that was actually solicited by an unlicensed neighbor in exchange for a referral cut. Which Ohio statute is most directly implicated?
- After the 2001 amendments to R.C. 3937.18, how does Ohio law generally treat interpolicy and intrapolicy stacking of UM/UIM limits?
- An Ohio HO-3 insured is displaced after a covered tornado loss. Coverage D Loss of Use pays additional living expense up to what default percentage of Coverage A?
- An Ohio HO-3 typically limits mold remediation arising from a covered water loss through which mechanism?
- An Ohio homeowner wants open-perils coverage on both the dwelling AND personal property under the OH Standard Fire Policy floor. Which form should be quoted?
Pennsylvania
48- A direct-response insurer markets personal auto policies in Pennsylvania by mail and website with no resident face-to-face agent. Under PA producer-licensing rules, which statement is MOST accurate?
- A PA HO-3 includes a mold sublimit endorsement. The insured has a $300,000 dwelling limit and a $10,000 mold sublimit. Mold remediation costs $25,000 after a covered water loss. What does the policy pay for the mold remediation?
- A PA HO-3 insured's home is uninhabitable after a covered fire. What does Coverage D — Loss of Use pay?
- A PA homeowner asks where to obtain flood insurance for a primary residence. What should the producer recommend?
- A PA homeowner buys a new HO-3 policy on March 1. On April 10, the insurer discovers underwriting concerns and wants to cancel. Which Act 205 rule applies?
- A PA homeowner fails to pay the renewal premium. Under Act 205, what is the minimum written notice an insurer must provide before cancelling for non-payment?
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