Free Ohio Property & Casualty practice questions

Answer: B. 24 hours

Ohio Rev. Code Sec. 3905.481 requires each individual issued a resident insurance agent license to complete at least 24 hours of approved continuing education for every renewal period. Twenty hours is the prelicensing study required for each line of authority before the examination, so it does not measure continuing education, and 40 hours is that prelicensing figure doubled for two lines. Seven hours is the continuing education minimum for a resident surety bail bond agent, a different license.

Answer: D. Every two years, on or before July 31

Section 3905.06(C)(1) has an individual resident agent apply for renewal biennially, on or before the last day of the licensee's birth month. For an agent born in July, that means July 31, every two years. The birthday itself is not the deadline, because the whole birth month is allowed. The cycle is two years rather than one, and it is anchored to the birth month rather than to the date the license was issued. Only a business entity renews on a date the superintendent determines.

Answer: C. 180 days

Ohio Rev. Code Sec. 3905.09(B) caps a temporary license at no more than 180 days, and the license ends sooner if the business owner or the owner's personal representative disposes of the business. Ninety days is the period within which an agent relocating to Ohio may apply without the education and examination requirements under a different section. Twelve months is the reinstatement window for a regular license suspended for nonrenewal, and 24 months matches the biennial renewal cycle of a regular resident license.

Answer: A. Before submitting the application for licensure

Section 3905.04(A) of the Ohio Revised Code requires a resident individual seeking a license for the property or casualty line, among others, to take and pass a written examination prior to applying. The examination comes first and the application follows. The examination covers the lines sought, an agent's duties and responsibilities, and Ohio insurance law. Ohio does not let a first-time resident applicant file now and test within ninety days afterward; the ninety-day period in Ohio law belongs to the separate exemption for agents relocating from another state who are already licensed there. The examination is not put off until the first renewal, and it is not tied to appointment by an insurer, because the statute places it before the application itself.

Answer: C. Applying within ninety days after establishing Ohio residence

Section 3905.041(A)(1) excuses an individual from Ohio's education and examination requirements when the resident license application comes within ninety days after the individual establishes a principal residence or principal place of business in Ohio, and the individual is currently licensed and in good standing in another state for the lines requested. The agent here meets the licensing and good-standing condition, so the timing is what decides it. Thirty days is the period Ohio gives a licensed agent to report an in-state address change, twelve months is the reinstatement window for a license suspended for nonrenewal, and 180 days is the maximum term of a temporary license. None of those is the relocation period.

Answer: D. A felony of the third degree

Ohio grades insurance fraud by the amount of the false or deceptive claim. Below $1,000 it is a first-degree misdemeanor; from $1,000 up to but not including $7,500 it is a fifth-degree felony; from $7,500 up to but not including $150,000 it is a fourth-degree felony; and at $150,000 or more it is a third-degree felony. A $180,000 claim is above the $150,000 threshold, so it is a felony of the third degree, and the lower grades apply only to smaller claims.

Answer: B. Within thirty days after October 1, the effective date of the termination

An insurer that ends an appointment, contract or other business relationship with an insurance agent must notify the superintendent within thirty days after the termination's effective date, here October 1. The date of the internal decision does not start the clock. Fifteen days is a different deadline: it is the time the insurer has, after notifying the superintendent, to mail the agent a copy of that notice. The duty to notify applies whenever the insurer ends the relationship, not only when it does so for cause.

Answer: B. Forty hours, made up of twenty for each line

Under Section 3905.04(C)(1)(c), the education route to the Ohio examination requires twenty hours of approved study for every line of authority the individual applies for. Two lines therefore require forty hours. Twenty hours in total treats the requirement as one block instead of a per-line unit. Twenty-four hours is the continuing education an individual resident agent must complete in each renewal period under Section 3905.481, not prelicensing study, and forty-eight hours doubles that unrelated figure. An applicant with an insurance degree from an accredited institution or a professional designation approved by the superintendent may qualify another way, which is why the stem specifies the education route.

Answer: B. No new notice, since a compliant notice was given in the prior twenty-four months

For a policy renewal, Ohio requires a notice of information practices no later than the renewal date, but excuses it in either of two cases: the personal information is collected only from the policyholder or from public records, or a compliant notice was given within the previous twenty-four months. The first exception does not apply because an outside source was used, but the second does, since eighteen months is inside the twenty-four-month window. Outside-source collection therefore does not automatically require a new notice, this provision sets no twelve-month repetition rule, and notices are owed at renewal and on reinstatement or a change in benefits, not only on a new application.

Answer: A. She is exempt from Ohio's continuing education requirements while she holds inactive status

Ohio Rev. Code Sec. 3905.16(C)(2) provides that a person granted inactive status is exempt from the continuing education requirements imposed under Chapter 3905. The division sets no one-period limit on that exemption and does not tie it to a renewal-date extension. An extension of the renewal date is a separate request under Ohio Rev. Code Sec. 3905.06(G), for an agent who cannot comply with renewal procedures because of military service, a long-term medical disability or a similar circumstance.