Under Connecticut's property and casualty guaranty association law, how is the association divided for purposes of administration and assessment?

Into three accounts: the workers' compensation insurance account, the automobile insurance account, and an account for all other insurance the Act applies to

A private passenger car registered in New York is driven in Connecticut, where its owner must keep security in effect for accidents occurring in Connecticut. Under Connecticut law, which policy may provide that security?

A policy issued by an insurer licensed in either Connecticut or New York

When the Insurance Commissioner reviews the selections made to the board of directors of the Connecticut Insurance Guaranty Association, which consideration does the statute specifically direct the commissioner to weigh?

Whether all member insurers are fairly represented on the board

A Connecticut auto insurer has accepted that its insured caused a crash. The claimant's vehicle damage is undisputed, but the insurer, as a regular business practice, withholds payment for it until the claimant agrees to a low figure on the injury claim under the same policy. Which listed unfair claims settlement practice best describes this conduct?

Failing to settle promptly under one part of the coverage, where liability is apparent, to influence settlement under another part

A Connecticut admitted insurer handles billing on a manufacturer's commercial risk property policy through its managing general agent. The insured is a private company, the policy is a property policy rather than workers' compensation, and the insurer writes on an admitted basis rather than as a surplus lines carrier. Last year's annual premium was $30,000, and the renewal premium will rise 15 percent. The managing general agent mails the premium billing notice 35 days before renewal. Has the insurer met its premium billing notice obligation?

Yes, because the managing general agent's timely mailing counts as compliance by the insurer

A Connecticut named insured owns two cars. One is insured under his auto policy; the other he owns but never insured. His daughter, who lives in his household, is hurt while riding as a passenger in the uninsured car when an uninsured driver runs a red light and strikes it. She seeks uninsured motorist benefits under her father's policy. What is the insurer's position under Connecticut law?

It need not provide the coverage, since she was occupying an uninsured car owned by the named insured.

An insurer licensed in Connecticut, which wrote several lines of business, is ordered liquidated with a finding of insolvency. Under the Connecticut Insurance Guaranty Association Act, which of its policies is a kind of direct insurance that the Act excludes from its application?

A disability income insurance policy

A Connecticut private passenger auto policy carries liability limits lower than another state's compulsory insurance law requires. The insured has an accident while driving in that other state. How does the Connecticut policy respond?

Its limits conform to that state's law, but only as far as required and only for use there

A producer whose home state is another state holds a Connecticut nonresident property and casualty license and has completed all of the home state's continuing education requirements for the current period. The home state treats Connecticut producers' completion of Connecticut continuing education the same way. How does Connecticut treat this producer's continuing education obligation?

Completing the home state's requirements also satisfies Connecticut's requirements

An individual who lives in another state wants a Connecticut nonresident casualty adjuster license. Her home state offers a casualty adjuster license, but she has never held one there or anywhere else. Under Connecticut law, what must be true before Connecticut may grant her application?

She must first obtain an equivalent adjuster license issued by another state

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1.Under Connecticut's property and casualty guaranty association law, how is the association divided for purposes of administration and assessment?
Answer: C. Into three accounts: the workers' compensation insurance account, the automobile insurance account, and an account for all other insurance the Act applies to
The section creating the association says that for purposes of administration and assessment the association is divided into three accounts: the workers' compensation insurance account, the automobile insurance account, and an account for all other insurance the Act applies to. The division matters because the association allocates claims paid and expenses incurred among the accounts separately and assesses member insurers separately for each account. Membership is compulsory rather than optional for every insurer within the law's definition of a member insurer.
Source
Conn. Gen. Stat. Sec. 38a-839 (Connecticut Insurance Guaranty Association created, membership, function, accounts)
Choose an answer to see the explanation.
2.A private passenger car registered in New York is driven in Connecticut, where its owner must keep security in effect for accidents occurring in Connecticut. Under Connecticut law, which policy may provide that security?
Answer: C. A policy issued by an insurer licensed in either Connecticut or New York
Connecticut allows the required security to be provided by a policy from an insurer licensed to transact business in Connecticut. When the vehicle is registered in another state, a policy from an insurer licensed either in Connecticut or in the state of registration also qualifies. Limiting the choice to a Connecticut-licensed insurer, or to a New York-licensed insurer, treats half of that rule as the whole of it, and the provision accepts a policy only from a licensed insurer.
Source
Conn. Gen. Stat. Sec. 38a-371(b) (Mandatory security requirements)
Choose an answer to see the explanation.
3.When the Insurance Commissioner reviews the selections made to the board of directors of the Connecticut Insurance Guaranty Association, which consideration does the statute specifically direct the commissioner to weigh?
Answer: A. Whether all member insurers are fairly represented on the board
Under Sec. 38a-840(b), the commissioner, when approving board selections, is to take into account, among other things, whether every member insurer is fairly represented. The statute names none of the other three considerations: it says nothing about producer licensing, a domestic-insurer majority, or liquidation experience.
Source
Conn. Gen. Stat. Sec. 38a-840(b) (Board of directors)
Choose an answer to see the explanation.
4.A Connecticut auto insurer has accepted that its insured caused a crash. The claimant's vehicle damage is undisputed, but the insurer, as a regular business practice, withholds payment for it until the claimant agrees to a low figure on the injury claim under the same policy. Which listed unfair claims settlement practice best describes this conduct?
Answer: D. Failing to settle promptly under one part of the coverage, where liability is apparent, to influence settlement under another part
The unfair claims settlement practices list includes holding up a prompt settlement under one portion of the coverage, once liability is apparent, in order to influence settlement under other portions. Here the property damage portion is clear and is being used as leverage on the injury portion. Requiring a preliminary report followed by a formal proof of loss carrying substantially the same information is a different listed practice, and nothing here involves duplicate paperwork. Lowball offers that force insureds to litigate and advertising a habit of appealing arbitration awards are also separate listed practices, and neither is present.
Source
Conn. Gen. Stat. Sec. 38a-816(6)(M) (Unfair practices defined)
Choose an answer to see the explanation.
5.A Connecticut admitted insurer handles billing on a manufacturer's commercial risk property policy through its managing general agent. The insured is a private company, the policy is a property policy rather than workers' compensation, and the insurer writes on an admitted basis rather than as a surplus lines carrier. Last year's annual premium was $30,000, and the renewal premium will rise 15 percent. The managing general agent mails the premium billing notice 35 days before renewal. Has the insurer met its premium billing notice obligation?
Answer: D. Yes, because the managing general agent's timely mailing counts as compliance by the insurer
Section 38a-323(b)(2) provides that, for a commercial risk policy other than workers' compensation, a premium billing notice mailed or delivered by the insurer's managing general agent in accordance with subdivision (1) is compliance by the insurer. Subdivision (1) requires the notice at least thirty days before renewal for a policy whose prior annual premium was under $50,000, so mailing 35 days ahead satisfies it. The notice could not be skipped: the commercial risk exemption applies only when the premium will rise less than ten percent, and this one rises 15 percent. The sixty-day period belongs to liability policies naming a municipality as insured and to surplus lines insurers, neither of which is involved here.
Source
Conn. Gen. Stat. Sec. 38a-323(b)(2) (Notice of nonrenewal, conditional renewal and premium billing for personal and commercial risk policies)
Choose an answer to see the explanation.
6.A Connecticut named insured owns two cars. One is insured under his auto policy; the other he owns but never insured. His daughter, who lives in his household, is hurt while riding as a passenger in the uninsured car when an uninsured driver runs a red light and strikes it. She seeks uninsured motorist benefits under her father's policy. What is the insurer's position under Connecticut law?
Answer: A. It need not provide the coverage, since she was occupying an uninsured car owned by the named insured.
Sec. 38a-336(a)(1)(C)(i) relieves an insurer of any requirement to provide uninsured and underinsured motorist coverage to a named insured, or to a relative living in the named insured's household, while occupying an uninsured or underinsured vehicle that the named insured owns. The daughter is a resident relative occupying her father's uninsured car, so the carve-out reaches her; it is not limited to the named insured personally. Since the statute imposes no requirement in this situation, there is no statutory duty to pay at minimum limits either, and a claim that the coverage simply follows the person overlooks this express carve-out. The separate theft rule in subparagraph (D) concerns a person struck as a pedestrian and does not apply to a passenger.
Source
Conn. Gen. Stat. Sec. 38a-336(a)(1)(C) (Uninsured and underinsured motorist coverage)
Choose an answer to see the explanation.
7.An insurer licensed in Connecticut, which wrote several lines of business, is ordered liquidated with a finding of insolvency. Under the Connecticut Insurance Guaranty Association Act, which of its policies is a kind of direct insurance that the Act excludes from its application?
Answer: B. A disability income insurance policy
Sec. 38a-837 applies the guaranty act to all kinds of direct insurance and then lists exceptions. The first exception is life, annuity, health or disability insurance, so a disability income policy falls outside the Act. Private passenger auto liability, homeowners and commercial general liability are direct property and casualty coverages, and none of them appears among the listed exceptions, so the Act applies to them.
Source
Conn. Gen. Stat. Sec. 38a-837(1) (Application of chapter)
Choose an answer to see the explanation.
8.A Connecticut private passenger auto policy carries liability limits lower than another state's compulsory insurance law requires. The insured has an accident while driving in that other state. How does the Connecticut policy respond?
Answer: D. Its limits conform to that state's law, but only as far as required and only for use there
Connecticut requires every auto liability policy to provide that, when another state's financial responsibility or compulsory insurance law requires more insurance for operating the vehicle there than the policy gives, the policy's limits and kinds of coverage become those that law sets. The step-up applies only to the extent that law requires and only to operation or use in that state, so it does not carry over to other accidents for the rest of the term. Connecticut liability coverage already reaches the United States, its territories and possessions, and Canada, so there is no gap at the state line. The added insurance is reduced by any other valid and collectible insurance, and no one may be paid twice for the same element of loss.
Source
Conn. Gen. Stat. Sec. 38a-335(c) (Minimum coverages; applicability)
Choose an answer to see the explanation.
9.A producer whose home state is another state holds a Connecticut nonresident property and casualty license and has completed all of the home state's continuing education requirements for the current period. The home state treats Connecticut producers' completion of Connecticut continuing education the same way. How does Connecticut treat this producer's continuing education obligation?
Answer: C. Completing the home state's requirements also satisfies Connecticut's requirements
Under Conn. Gen. Stat. Sec. 38a-702n(b), a nonresident producer who meets the home state's continuing education requirements is treated as meeting Connecticut's, as long as the home state gives the same recognition to Connecticut producers. The stem says the home state does reciprocate, so the producer need not complete Connecticut's requirement separately. The subsection sets no hour-matching test and no course-by-course advance approval by the commissioner as conditions of this credit.
Source
Conn. Gen. Stat. Sec. 38a-702n(b) (Reciprocity)
Choose an answer to see the explanation.
10.An individual who lives in another state wants a Connecticut nonresident casualty adjuster license. Her home state offers a casualty adjuster license, but she has never held one there or anywhere else. Under Connecticut law, what must be true before Connecticut may grant her application?
Answer: A. She must first obtain an equivalent adjuster license issued by another state
Conn. Gen. Stat. Sec. 38a-769(b) provides that, except as allowed by subsection (c), Connecticut grants no nonresident license unless the applicant holds an equivalent license from another state. Subsection (c) lets a person who lives in a state that does not offer the type of license sought apply for a nonresident license and designate Connecticut as the home state; because her state does offer a casualty adjuster license, that route is closed to her. Passing a Connecticut examination does not substitute for the equivalent license, and the subsection does not require a Connecticut resident producer license.
Source
Conn. Gen. Stat. Sec. 38a-769(b) (Application for license. Regulations. Exceptions.)
Choose an answer to see the explanation.

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1.Under Connecticut's property and casualty guaranty association law, how is the association divided for purposes of administration and assessment?

2.A private passenger car registered in New York is driven in Connecticut, where its owner must keep security in effect for accidents occurring in Connecticut. Under Connecticut law, which policy may provide that security?

3.When the Insurance Commissioner reviews the selections made to the board of directors of the Connecticut Insurance Guaranty Association, which consideration does the statute specifically direct the commissioner to weigh?

7.An insurer licensed in Connecticut, which wrote several lines of business, is ordered liquidated with a finding of insolvency. Under the Connecticut Insurance Guaranty Association Act, which of its policies is a kind of direct insurance that the Act excludes from its application?

8.A Connecticut private passenger auto policy carries liability limits lower than another state's compulsory insurance law requires. The insured has an accident while driving in that other state. How does the Connecticut policy respond?

10.An individual who lives in another state wants a Connecticut nonresident casualty adjuster license. Her home state offers a casualty adjuster license, but she has never held one there or anywhere else. Under Connecticut law, what must be true before Connecticut may grant her application?

The other 252 questions are $29.