Maryland State Law - Property & Casualty Quiz

42 Questions | Total Attempts: 1527

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Law Quizzes & Trivia

Questions and Answers
  • 1. 
    Under Maryland Insurance Laws, PIP benefits for lost wages are paid at what percentage?
    • A. 

      65%

    • B. 

      75%

    • C. 

      80%

    • D. 

      85%

  • 2. 
    How many days in advance of proposing to cancel a policy for nonpayment of premium must an insurer give? 
    • A. 

      10 days

    • B. 

      20 days

    • C. 

      45 days

    • D. 

      30 days

  • 3. 
    Which is not considered a comprehensive/other than collision loss?
    • A. 

      Hitting a Deer

    • B. 

      Damage from Falling Rocks

    • C. 

      Overturn of a Vehicle

    • D. 

      Vandalism

  • 4. 
    The Maryland Auto Insurance Fund defines a covered vehicle as Auto, Truck, Van, Mopeds, Motor Scooters and…
    • A. 

      Motorbike

    • B. 

      Quad bike

    • C. 

      Small Aircraft

    • D. 

      Trailer

  • 5. 
    An Insurance Producer must notify the Insurance Commission of a change to name or address…
    • A. 

      Within 10 days of change

    • B. 

      Within 30 days of change

    • C. 

      Within 24 hours of change

    • D. 

      Within 60 days of change

  • 6. 
    A Person with insurable interest in real property at a fixed location may apply to the Joint Insurance Association for what reason?
    • A. 

      Been unable to obtain Homeowner’s insurance

    • B. 

      Underage

    • C. 

      Not a citizen of the United States

    • D. 

      To Insure a Houseboat.

  • 7. 
    When terminating a policy or insurance contract, an insurer’s termination notice must…
    • A. 

      Must be Accepted, Signed and Returned by the Insured before the Termination can go into Effect

    • B. 

      Must be in English and Spanish

    • C. 

      State the specific reason for termination

    • D. 

      Must contain a list of other Available Insurers

  • 8. 
    PIP coverage as a result of an auto accident pays for incurred medical and…
    • A. 

      Pain & Suffering

    • B. 

      Loss of Services

    • C. 

      Injuries sustained by the Driver's in the other Vehicle

    • D. 

      Funeral Expenses

  • 9. 
    Which of the following reasons may NOT be used to withdraw funds from a premium account?
    • A. 

      Payment of claim to an insured

    • B. 

      Refunding of Premium to another Insured

    • C. 

      Purchase of Stocks

    • D. 

      Payment of fees to a Laywer

  • 10. 
    Under the National Flood Insurance Program (NFIP), which of the following does not apply to coverage prohibited?
    • A. 

      Available on a WYO Program

    • B. 

      Subject to a deductible

    • C. 

      Administered under FEMA

    • D. 

      Coverage must be normally dry land

  • 11. 
    An Insurer may refuse to issue Property Insurance on a risk location in a certain geographical area of the applicant because…
    • A. 

      A subjective basis and is not arbitray

    • B. 

      An objective basis and is not arbitrary

    • C. 

      A subjective basis and is arbitrary

    • D. 

      An object basis and is arbitrary

  • 12. 
    Which of the following does the National Flood Insurance Program not provide coverage for?
    • A. 

      Flash Flood

    • B. 

      Tidal Bore

    • C. 

      Tsunami

    • D. 

      Mudslide

  • 13. 
    How many employees must an employer have to subject to Maryland’s worker’s compensation laws?
    • A. 

      One

    • B. 

      Five

    • C. 

      Twenty Five

    • D. 

      Thirty

  • 14. 
    A Maryland Auto Insurance Fund (MAIF) producer is REQUIRED to have a bond for the fund of how much?
    • A. 

      $10,000

    • B. 

      $15,000

    • C. 

      $20,000

    • D. 

      $25,000

  • 15. 
    What is the premium receipt tax charged for surplus lines insurance on all gross premiums?
    • A. 

      1%

    • B. 

      2%

    • C. 

      3%

    • D. 

      5%

  • 16. 
    A premium finance company may charge an initial non-refundable service fee of how much?
    • A. 

      $5

    • B. 

      $10

    • C. 

      $15

    • D. 

      $20

  • 17. 
    An insurer fails to provide notice of renewal premium due for a personal lines policy and subsequently the policy premium. The insured has a claim during this time. The Insurer…
    • A. 

      Refuses to pay the claim

    • B. 

      Deducts the premium owed from the claim payout before handling

    • C. 

      Collects premium owed before handling claim

    • D. 

      Will settle the premium owed at a later date

  • 18. 
    What is a licensed insurance producer not required to provide to an applicant for flood insurance?
    • A. 

      A guide on flood prevention

    • B. 

      A explanatory document concerning the flood insurance policy

    • C. 

      A statement that indicates a claim filed under the homeowner’s policy will cover any loss

    • D. 

      A copy of the flood insurance documents in English

  • 19. 
    The following items (requirements of a notice of intent to cancel Worker’s Compensation Policy)[on the multiple choice section of the test] which is not required? 
    • A. 

      Effective date of the cancellation

    • B. 

      The information on policy limits

    • C. 

      The notice must include alternate insurance

    • D. 

      The Insurers name and addresss

  • 20. 
    John is 66 years old, has a physical handicap and has never been in a motor/vehicle accident or received a premium for his motor/vehicle insurance. What will happen to his policy?
    • A. 

      His policy rate will increase due to his handicap

    • B. 

      His policy rate will increase due to his age

    • C. 

      Reviewing his policy is a discriminatory practice, his policy will remain unchanged.

    • D. 

      His policy will automatically have to be reviewed due to his age and physical condition

  • 21. 
    A National Flood Insurance Program policyholder that has purchased personal property coverage may recover what kind of personal property?
    • A. 

      Cell phones and small handheld electronics

    • B. 

      Rare books or autographed items

    • C. 

      Appliances

    • D. 

      Sporting equipment

  • 22. 
    When flood maps change, a property that has higher rates as a result of change shall...
    • A. 

      Rates phased over a 1 year grace period

    • B. 

      Rates phased over a 10-year period at 10% per year

    • C. 

      Rates phased over a 5-year period at 20% per year

    • D. 

      Rates are changed on the fifth year at the start date of the policy

  • 23. 
    Which of the following is not a requirement for the disclosure to be distributed to National Flood Insurance?
    • A. 

      The document's introduction

    • B. 

      The font size of the disclosure must be twice the size of the body of the policy

    • C. 

      The document must be printed in a physical copy

    • D. 

      The disclosure requires the endorsement of the Commissioner of the State of Maryland.

  • 24. 
    An insurance adviser license authorizes them to…
    • A. 

      Qualify as a bail bondsman

    • B. 

      Re-write insurance policy to tailor to their advice for an insured

    • C. 

      Issue licences to other potential insurance advisers.

    • D. 

      Advise on the terms, coverages, or benefits of insurance contracts and charge a fee for advice

  • 25. 
    The Property and casualty guaranty corporation must be obligated to pay the full amount of any claim [from what period]?
    • A. 

      On the same day as an insurer

    • B. 

      15 days after an insurer

    • C. 

      30 days after an insurer

    • D. 

      45 days after an insurer

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