Free Indiana Property & Casualty practice questions

Answer: B. Notify the commissioner of the proposed assumed name before doing business under it

Indiana requires a producer to tell the commissioner about a proposed assumed name before doing any business in Indiana under a name other than the producer's legal name. The notice must come first, so telling the commissioner 30 days after the name is already in use, or waiting until the next renewal, is too late. The statute places the duty on the producer and directs the notice to the commissioner; it does not call for consent from appointing insurers.

Answer: A. As performance by the insurer, since the shop is one the insurer directed to repair the car

Ind. Code Sec. 27-4-1.5-13 treats an act the chapter requires of an insurer as performed by the insurer when a body shop the insurer directs to repair the vehicle performs it. The shop's notice therefore counts as the insurer's. The section does not restrict these acts to insurer employees, does not require the shop to be the insurer's licensed agent, and does not move the duty off the insurer; it attributes the shop's act to the insurer.

Answer: C. That despite diligent effort, insurers authorized in Indiana would not provide the full amount needed

The monthly affidavit must include a statement that the licensee, after diligent effort, could not obtain the full amount of insurance the insured needed from any insurer authorized in Indiana to write that class of business. The section's list of affidavit contents sets no required number of declinations, calls for no waiver signed by the insured, and requires no advance approval of the placement by the commissioner, so each of those choices adds a condition the provision does not contain.

Answer: C. The notice must list it as one of the types the insured may select

Ind. Code Sec. 27-4-1.5-8(b)(2)(A) requires the notice to give the insured an opportunity to select, among other types, new body parts made by or for the vehicle's manufacturer. Because the subsection makes that type one of the required options, a notice offering only used parts falls short of it. The subsection attaches no cost-sharing condition to the option and does not limit it to leased vehicles.

Answer: B. The commissioner, under IC 4-21.5-6

The chapter authorizes the commissioner to file a petition for civil enforcement of an order under IC 4-21.5-6. The person who received the order is not the one seeking enforcement; that person's route is judicial review of the order, which is obtained under IC 4-21.5-5, so pairing the commissioner's enforcement petition with IC 4-21.5-5 is also wrong. The section gives the enforcement petition to the commissioner and not to a complaining policyholder.

Answer: B. Any person who engages in such a practice in Indiana

The section is addressed to every person: it provides that no person may engage in Indiana in a practice the chapter defines or determines to be unfair or deceptive. Its reach is therefore not limited to insurers holding a certificate of authority, to licensed producers, or to insurers organized under Indiana law.

Answer: C. Refusal, suspension, or revocation of the producer license

The application section requires the applicant to make the declaration under penalty of refusal, suspension, or revocation of the license, so an untrue statement puts the license itself at risk. The section sets no criminal fine and says nothing about forfeiting commissions. A reprimand alone is too narrow, because the stated consequence reaches refusal, suspension, and revocation.

Answer: B. On or before June 20

The surplus lines reporting rule requires a licensed surplus lines producer to file, on or before the twentieth day of each month, an affidavit covering all transactions procured during the preceding calendar month. Policies procured in May are therefore reported by June 20. June 1 is earlier than the rule requires, and July 31 and February 1 of the next year are later than it allows.

Answer: B. Any three members of the bureau

Indiana Code Sec. 27-7-2-28 obligates insurers that are authorized to write worker's compensation insurance in Indiana and belong to the worker's compensation rating bureau to take a worker's compensation risk once it has been tendered to and rejected in writing by any three bureau members. Two written rejections do not trigger the duty, and the statute calls for neither five rejections nor a majority of the membership.

Answer: B. 20 days

For a policy that has been in effect 90 days or less, Indiana requires the insurer to mail written notice of cancellation at least 20 days in advance when the reason is fraud or material misrepresentation by the insured. Within that same early period, the 10 day minimum applies only when the reason is failure to pay premium, and the 30 day minimum applies to cancellation for any other reason. A 45 day period is not among the periods set for a policy in its first 90 days.