Under Louisiana law, when is an authorized insurer's annual statement due, and as of what date must it show the company's condition?

Before March 1, showing condition as of the preceding December 31

Under the cancellation provision of the standard fire insurance policy of the State of Louisiana, how much written notice must the company give the insured when it cancels because the premium has not been paid?

A ten-day written notice of cancellation

An insured's claim under a Louisiana auto policy involves no loss to immovable property. A court finds the insurer breached its statutory duty of good faith and fair dealing, and the insured proves economic damages. Apart from those damages and the attorney fees and costs incurred, what is the most the insured may be awarded as a penalty under the good faith provision?

Fifty percent of the damages sustained or $5,000, whichever is greater

La. R.S. 22:1564 sets out producer-of-record rules, including an insurer's duty to recognize a producer of record selected in writing by the policy owner. To which of the following does that section expressly state it does not apply?

Limited benefit health insurance policies or contracts

A claimant asks a Louisiana insurer for the forms needed to present a claim, and the insurer keeps such forms for that purpose. To stay clear of the unfair claims settlement practice the statute describes, within what period should the insurer supply the forms, with reasonable explanations of their use?

Within fifteen calendar days of the request

La. R.S. 22:1544(A) provides that the producer licensing Subpart does not require an insurer to obtain an insurance producer license. For purposes of that subsection, which of the following is treated as the insurer?

The insurer itself, acting in its own name

A Louisiana homeowners insurer reduced the coverage on a policy, so the insured is owed a return premium, and the insurer pays that refund late. At what rate does interest on the refund accrue?

One and one-half percent per month of the refund, with no daily proration

An insurer fails to file its renewal company appointments with the commissioner. What fine does Louisiana law impose on the insurer for this failure?

$10 per license named in its appointment form

Free Louisiana Property & Casualty practice questions

10 questions · no signup
Nothing is saved.

Real questions with the answer, the reasoning and the source.

1.Under Louisiana law, when is an authorized insurer's annual statement due, and as of what date must it show the company's condition?
Answer: D. Before March 1, showing condition as of the preceding December 31
The annual statement must be filed before March 1 and must show the company's condition as of the preceding December 31. The May 15 deadline with a March 31 date belongs to the first quarterly report, not the annual statement. June 30 is the reference date for the second quarterly report, which is due before August 15, so pairing June 30 with March 1, or December 31 with August 15, mixes up the statutory schedule.
Source
La. Rev. Stat. Sec. 22:571(B)
Choose an answer to see the explanation.
2.Under the cancellation provision of the standard fire insurance policy of the State of Louisiana, how much written notice must the company give the insured when it cancels because the premium has not been paid?
Answer: A. A ten-day written notice of cancellation
The standard fire policy lets the company cancel at any time by giving the insured a thirty-day written notice, or a ten-day written notice when the cancellation is for nonpayment of premium. Because this cancellation rests on nonpayment, ten days is the period. Thirty days is the period for cancellation on other grounds, and twenty and sixty days are not periods this provision uses.
Source
La. Rev. Stat. Sec. 22:1311(F)(2)
Choose an answer to see the explanation.
3.The commissioner determines that a producer engaged in an unfair or deceptive act or practice and finds that the producer knew the conduct violated the unfair trade practices law. What is the maximum monetary penalty the commissioner may order for each such act?
Answer: C. $25,000 for each act
Under R.S. 22:1969(A)(1), the ordinary cap is $1,000 for each act or violation, but where the person knew or reasonably should have known of the violation, the cap rises to $25,000 for each act, with an aggregate limit of $500,000 in any six-month period. $1,000 is the cap for violations without that knowledge. $100,000 is the combined ceiling for those ordinary violations, not a per-act amount, and $5,000 is not a per-act figure this provision uses.
Source
La. Rev. Stat. Sec. 22:1969(A)(1)
Choose an answer to see the explanation.
4.An insured's claim under a Louisiana auto policy involves no loss to immovable property. A court finds the insurer breached its statutory duty of good faith and fair dealing, and the insured proves economic damages. Apart from those damages and the attorney fees and costs incurred, what is the most the insured may be awarded as a penalty under the good faith provision?
Answer: D. Fifty percent of the damages sustained or $5,000, whichever is greater
Louisiana places on every insurer, including a surplus line insurer, a duty of good faith and fair dealing toward its insured. On a claim that does not involve loss to the insured's immovable property, an insurer that breaches that duty owes the proven economic damages and may be ordered to pay a penalty capped at fifty percent of the damages sustained or $5,000, whichever is greater, plus attorney fees and costs actually incurred. The percentage is fifty, not twenty-five; the floor is $5,000, not $2,500; and the cap takes the greater figure, not the lesser. A claim for loss to immovable property is instead handled under a different penalty provision.
Source
La. Rev. Stat. Sec. 22:1892(I)(1)(a)
Choose an answer to see the explanation.
5.La. R.S. 22:1564 sets out producer-of-record rules, including an insurer's duty to recognize a producer of record selected in writing by the policy owner. To which of the following does that section expressly state it does not apply?
Answer: C. Limited benefit health insurance policies or contracts
La. R.S. 22:1564(C) carves limited benefit health insurance policies and contracts out of the section entirely. Property insurance, casualty insurance and bonds are among the coverages for which Subsection B expressly requires an insurer to recognize the producer of record that the policy owner selects, so none of them is excluded.
Source
La. Rev. Stat. Sec. 22:1564(C)
Choose an answer to see the explanation.
6.A producer licensed in Texas establishes legal residence in Louisiana. Within what period must the producer apply to become a Louisiana resident licensee?
Answer: C. 90 days
R.S. 22:1551(B) gives a producer licensed in another state ninety days after establishing legal residence in Louisiana to apply for a resident license under R.S. 22:1546. Thirty days is the period R.S. 22:1548(C) sets for a producer moving out of Louisiana to file a change of address, which is a different filing. Sixty and 180 days do not appear in Section 1551(B). The same subsection adds that no examination is required for lines the producer already held in the prior state, except where the commissioner provides otherwise by regulation.
Source
La. Rev. Stat. Sec. 22:1551(B)
Choose an answer to see the explanation.
7.A claimant asks a Louisiana insurer for the forms needed to present a claim, and the insurer keeps such forms for that purpose. To stay clear of the unfair claims settlement practice the statute describes, within what period should the insurer supply the forms, with reasonable explanations of their use?
Answer: A. Within fifteen calendar days of the request
R.S. 22:1964(14) treats certain claim-handling failures as unfair claims settlement practices when they are done often enough to indicate a general business practice. Subparagraph (o) is the failure to furnish the forms needed to present a claim, with reasonable explanations of their use, within fifteen calendar days of a request, where the insurer maintains forms for that purpose. Ten business days, thirty calendar days and twenty business days are not the period this subparagraph sets for claim forms.
Source
La. Rev. Stat. Sec. 22:1964(14)(o)
Choose an answer to see the explanation.
8.La. R.S. 22:1544(A) provides that the producer licensing Subpart does not require an insurer to obtain an insurance producer license. For purposes of that subsection, which of the following is treated as the insurer?
Answer: D. The insurer itself, acting in its own name
La. R.S. 22:1544(A) relieves an insurer of any duty to hold a producer license, and the same subsection says that for this purpose the term insurer does not include the insurer's officers, directors, employees, subsidiaries or affiliates. Only the insurer itself gets the benefit of this subsection; a subsidiary, an affiliate, or an officer or director cannot claim it under Subsection A.
Source
La. Rev. Stat. Sec. 22:1544(A)
Choose an answer to see the explanation.
9.A Louisiana homeowners insurer reduced the coverage on a policy, so the insured is owed a return premium, and the insurer pays that refund late. At what rate does interest on the refund accrue?
Answer: C. One and one-half percent per month of the refund, with no daily proration
Louisiana law requires a late refund owed because of a cancellation, elimination or reduction of coverage to carry interest of one and one-half percent per month on the amount of the refund, and the statute states that this monthly interest is not prorated daily. A one percent monthly rate understates the statutory rate. A daily-prorated monthly rate contradicts the statute's express denial of daily proration. An annual rate of one and one-half percent misstates the period, since the rate is set per month. The rule reaches property and casualty policies but not health insurance, life insurance, annuities, or policies that require an audit.
Source
La. Rev. Stat. Sec. 22:1268(A)
Choose an answer to see the explanation.
10.An insurer fails to file its renewal company appointments with the commissioner. What fine does Louisiana law impose on the insurer for this failure?
Answer: C. $10 per license named in its appointment form
R.S. 22:1558(B)(3) fines an insurer that fails to file its renewal company appointments ten dollars for each license named in its appointment form. The $500 per violation and $10,000 calendar-year aggregate figures are the limits on fines the commissioner may levy against a producer or applicant under R.S. 22:1554(A), not this insurer fine. A $50 figure appears in R.S. 22:1547(G) as the per-violation penalty on a licensee who reports a change late, and $250 is the trade-name fine in R.S. 22:1552(B).
Source
La. Rev. Stat. Sec. 22:1558(B)(3)
Choose an answer to see the explanation.

The other 351 questions are $29.

Lifetime access, the full timed simulator, drills on the areas that cost you marks, and a readiness score that tells you when to book. One payment, nothing recurring, nothing else to buy.

Take the free scored exam See what access includes

The scored exam is free, 20 questions in 30 minutes, and needs an account. These 10 do not.

1.Under Louisiana law, when is an authorized insurer's annual statement due, and as of what date must it show the company's condition?

2.Under the cancellation provision of the standard fire insurance policy of the State of Louisiana, how much written notice must the company give the insured when it cancels because the premium has not been paid?

3.The commissioner determines that a producer engaged in an unfair or deceptive act or practice and finds that the producer knew the conduct violated the unfair trade practices law. What is the maximum monetary penalty the commissioner may order for each such act?

5.La. R.S. 22:1564 sets out producer-of-record rules, including an insurer's duty to recognize a producer of record selected in writing by the policy owner. To which of the following does that section expressly state it does not apply?

6.A producer licensed in Texas establishes legal residence in Louisiana. Within what period must the producer apply to become a Louisiana resident licensee?

8.La. R.S. 22:1544(A) provides that the producer licensing Subpart does not require an insurer to obtain an insurance producer license. For purposes of that subsection, which of the following is treated as the insurer?

9.A Louisiana homeowners insurer reduced the coverage on a policy, so the insured is owed a return premium, and the insurer pays that refund late. At what rate does interest on the refund accrue?

10.An insurer fails to file its renewal company appointments with the commissioner. What fine does Louisiana law impose on the insurer for this failure?

The other 351 questions are $29.