An insurer learns that the swimming pool at a property it insures under a renewal policy subject to the Maine Property Insurance Cancellation Control Act is not fenced to the standards set in Title 22, section 1631. Which sequence makes the unfenced pool a valid ground for cancellation?

The insurer gives notice of the defect and its intent to cancel, and the pool stays noncompliant for 30 days

The superintendent has found that competition is insufficient for one class of insurance and has deemed Maine's large commercial contract exemption waived for that class. Five interested parties then ask for a hearing. What does the statute require of the superintendent?

Hold a hearing within 45 days of the request on whether competition is sufficient

Maine law allows its licensing examination for producers, adjusters and consultants to be given in two parts. If it is, how must the content be divided between the parts?

One part covers the kinds of insurance applied for; the other covers licensee duties and Maine insurance law and rules

A producer with surplus lines authority issues a certificate of insurance that misstates the coverage. The error came from carelessness, not from any intent to deceive. If the producer is convicted, what penalty exposure does Maine law provide?

The Code's general civil penalty, or any greater penalty another law provides

A foreign insurer applies for authority to transact insurance in Maine. As to the insurance it writes in Maine, what must it maintain in order to be authorized?

Reserves on Maine business as required by Title 24-A, chapter 11

An officer of an insurer willfully issues an insurance contract in Maine in violation of the statute requiring a certificate of authority from the superintendent. If the officer is convicted, what is the maximum exposure under that statute?

A fine of up to $5,000, up to 2 years in prison, or both

While reviewing a client's coverage, a licensed Maine producer learns the client has a large sum to invest and urges the client to put it into a rental property owned by the producer's sister. No insurance, banking or securities law or rule authorizes the arrangement. How does Maine law treat the producer's conduct?

Prohibited: the producer used relationship knowledge to steer the money into a relative's asset

An insurer reviewing a property policy subject to the Maine Property Insurance Cancellation Control Act learns the insured dwelling was built in 1890. Without inspecting or otherwise considering the home's present condition, the insurer decides not to renew solely because of the dwelling's age. Which statement is correct?

The decision is prohibited, because age alone cannot be the basis without considering current condition

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1.An insurer learns that the swimming pool at a property it insures under a renewal policy subject to the Maine Property Insurance Cancellation Control Act is not fenced to the standards set in Title 22, section 1631. Which sequence makes the unfenced pool a valid ground for cancellation?
Answer: B. The insurer gives notice of the defect and its intent to cancel, and the pool stays noncompliant for 30 days
Section 3049(8) makes an unfenced pool a cancellation ground when the pool stays out of compliance with the Title 22 fencing standards for 30 days after the insurer gives notice of the defective condition and of its intent to cancel. Canceling at once skips both the notice and the 30-day period the paragraph builds in. The paragraph's trigger is the uncorrected fencing defect after notice; an injury, a claim and a criminal conviction form no part of it.
Source
Me. Rev. Stat. tit. 24-A, Sec. 3049(8)
Choose an answer to see the explanation.
2.The superintendent has found that competition is insufficient for one class of insurance and has deemed Maine's large commercial contract exemption waived for that class. Five interested parties then ask for a hearing. What does the statute require of the superintendent?
Answer: A. Hold a hearing within 45 days of the request on whether competition is sufficient
When the superintendent finds that a line, class or type of insurance lacks a sufficient degree of competition, the large commercial contract provisions may be deemed waived for as long as that condition lasts. Once they are waived, a request from 5 or more interested parties obliges the superintendent to hold a hearing within 45 days, where those parties may offer evidence on whether competition is sufficient. A 30-day deadline and a 10-party threshold both misstate those figures. The subsection puts the duty to hold the hearing on the superintendent, which rules out an immediate restoration or a referral to the Attorney General.
Source
Me. Rev. Stat. tit. 24-A, Sec. 2412-A(5)
Choose an answer to see the explanation.
3.Under the Maine standard fire policy's conditions on what the insured must do when a loss occurs, within what period after the loss must the insured render a signed and sworn proof of loss, unless the insurer extends the time in writing?
Answer: D. Within 60 days after the loss
The requirements-in-case-loss-occurs condition has the insured give immediate written notice of the loss, protect the property from further damage, separate damaged from undamaged personal property, and furnish a detailed inventory. It then requires a proof of loss, signed and sworn to by the insured, within sixty days after the loss unless the insurer extends that time in writing. Thirty, ninety and one hundred twenty days are not the period this condition states.
Source
Me. Rev. Stat. tit. 24-A, Sec. 3002(1) (Maine standard fire policy, Requirements in case loss occurs condition)
Choose an answer to see the explanation.
4.Maine law allows its licensing examination for producers, adjusters and consultants to be given in two parts. If it is, how must the content be divided between the parts?
Answer: A. One part covers the kinds of insurance applied for; the other covers licensee duties and Maine insurance law and rules
When the examination is split, section 1410(2) assigns one part to the applicant's knowledge of the kinds of insurance named in the application, and the other to the duties and responsibilities of a producer, adjuster or consultant along with Maine's insurance laws and rules. Deferring Maine law to renewal misplaces it, because state law is one of the two required parts. Splitting by written and oral format, or adding a part for each insurer, matches neither of the two subjects the subsection names.
Source
Me. Rev. Stat. tit. 24-A, Sec. 1410(2)
Choose an answer to see the explanation.
5.A producer with surplus lines authority issues a certificate of insurance that misstates the coverage. The error came from carelessness, not from any intent to deceive. If the producer is convicted, what penalty exposure does Maine law provide?
Answer: A. The Code's general civil penalty, or any greater penalty another law provides
Maine's surplus lines evidence-of-insurance statute makes a producer with surplus lines authority who issues a false certificate of insurance, whether knowingly or negligently, subject on conviction to the penalty in section 12-A of the Insurance Code or to any greater penalty another law provides. The same exposure applies to a producer who fails to notify the insured promptly of a material change by delivering a substitute certificate. Because the statute reaches negligence, a careless error is not excused for lack of intent, and the statute places the penalty on the producer who issued the certificate.
Source
Me. Rev. Stat. tit. 24-A, Sec. 2008(5)
Choose an answer to see the explanation.
6.A foreign insurer applies for authority to transact insurance in Maine. As to the insurance it writes in Maine, what must it maintain in order to be authorized?
Answer: D. Reserves on Maine business as required by Title 24-A, chapter 11
Sec. 406(1) bars authorizing a foreign insurer to transact insurance in Maine unless, for the insurance it writes in Maine, it maintains reserves as Title 24-A, chapter 11 (assets and liabilities) requires. The reserve standard is Maine's own chapter, so a standard drawn only from the home state's laws does not satisfy it. A deposit with the Attorney General is not the reserve this subsection names, and a home-state license does not take the place of the reserve requirement.
Source
Me. Rev. Stat. tit. 24-A, Sec. 406(1)
Choose an answer to see the explanation.
7.An officer of an insurer willfully issues an insurance contract in Maine in violation of the statute requiring a certificate of authority from the superintendent. If the officer is convicted, what is the maximum exposure under that statute?
Answer: B. A fine of up to $5,000, up to 2 years in prison, or both
Sec. 404(4) reaches an insurer and its officers, directors, agents, representatives and employees who willfully authorize, negotiate, make or issue a contract in breach of the certificate-of-authority section. On conviction, the exposure is a fine of no more than $5,000, imprisonment of no more than 2 years, or both. A $1,000 and 6-month ceiling is lower than this section sets. A civil-penalty-only answer ignores the criminal fine and imprisonment the section provides. A 5-year term with no fine misstates both the prison ceiling and the availability of a fine.
Source
Me. Rev. Stat. tit. 24-A, Sec. 404(4)
Choose an answer to see the explanation.
8.While reviewing a client's coverage, a licensed Maine producer learns the client has a large sum to invest and urges the client to put it into a rental property owned by the producer's sister. No insurance, banking or securities law or rule authorizes the arrangement. How does Maine law treat the producer's conduct?
Answer: A. Prohibited: the producer used relationship knowledge to steer the money into a relative's asset
Section 1445(2)(A) bars a licensed producer from using knowledge gained through the insurance relationship to invest the consumer's money in property or assets in which the producer or the producer's relatives have or will have an ownership interest, unless insurance, banking or securities laws or rules otherwise authorize it. The stem rules out that authorization, and the sister owns the property, so the conduct is prohibited. The prohibition is a limit on the licensed producer, so it applies even though no policy is sold, and the subsection does not make it turn on whether the producer is paid or whether the client later suffers a loss.
Source
Me. Rev. Stat. tit. 24-A, Sec. 1445(2)(A)
Choose an answer to see the explanation.
9.An insurer reviewing a property policy subject to the Maine Property Insurance Cancellation Control Act learns the insured dwelling was built in 1890. Without inspecting or otherwise considering the home's present condition, the insurer decides not to renew solely because of the dwelling's age. Which statement is correct?
Answer: B. The decision is prohibited, because age alone cannot be the basis without considering current condition
Section 3057 bars an authorized insurer from canceling, refusing to issue or refusing to renew a policy under the Act solely because of the dwelling's age and without considering the property's current condition. Refusing to renew is named in the section, so the midterm-only choice is wrong. Timely notice does not turn a prohibited basis into a permitted one. The insurability choice fails because Section 3057 forbids acting on age alone, which is exactly what this insurer did.
Source
Me. Rev. Stat. tit. 24-A, Sec. 3057
Choose an answer to see the explanation.
10.A warehouse is insured against fire under two policies on Maine standard fire policy terms: $200,000 with Insurer A and $100,000 with Insurer B. A $60,000 fire loss occurs, and Insurer B is insolvent. Under the pro rata liability condition, what is the most Insurer A owes for this loss?
Answer: B. $40,000
Under the pro rata liability condition, an insurer pays no greater share of a loss than its amount of insurance bears to all the insurance covering the property against that peril, "whether collectible or not." Insurer A carries $200,000 of $300,000 in total insurance, or two thirds, so it owes two thirds of $60,000, which is $40,000. Because the other insurance counts whether or not it can be collected, Insurer B's insolvency leaves Insurer A's share unchanged, so $60,000 is wrong. $20,000 is Insurer B's proportion, not Insurer A's. $30,000 splits the loss equally and ignores the different amounts of insurance.
Source
Me. Rev. Stat. tit. 24-A, Sec. 3002(1) (Maine standard fire policy, Pro rata liability condition)
Choose an answer to see the explanation.

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

1.An insurer learns that the swimming pool at a property it insures under a renewal policy subject to the Maine Property Insurance Cancellation Control Act is not fenced to the standards set in Title 22, section 1631. Which sequence makes the unfenced pool a valid ground for cancellation?

2.The superintendent has found that competition is insufficient for one class of insurance and has deemed Maine's large commercial contract exemption waived for that class. Five interested parties then ask for a hearing. What does the statute require of the superintendent?

3.Under the Maine standard fire policy's conditions on what the insured must do when a loss occurs, within what period after the loss must the insured render a signed and sworn proof of loss, unless the insurer extends the time in writing?

4.Maine law allows its licensing examination for producers, adjusters and consultants to be given in two parts. If it is, how must the content be divided between the parts?

5.A producer with surplus lines authority issues a certificate of insurance that misstates the coverage. The error came from carelessness, not from any intent to deceive. If the producer is convicted, what penalty exposure does Maine law provide?

6.A foreign insurer applies for authority to transact insurance in Maine. As to the insurance it writes in Maine, what must it maintain in order to be authorized?

7.An officer of an insurer willfully issues an insurance contract in Maine in violation of the statute requiring a certificate of authority from the superintendent. If the officer is convicted, what is the maximum exposure under that statute?

10.A warehouse is insured against fire under two policies on Maine standard fire policy terms: $200,000 with Insurer A and $100,000 with Insurer B. A $60,000 fire loss occurs, and Insurer B is insolvent. Under the pro rata liability condition, what is the most Insurer A owes for this loss?

The other 259 questions are $29.