IPCI - Indiana Property and Casualty Insurance Exam

Question 1: A Lafayette insurer's compliance officer reviews the first application submitted by a newly licensed producer and asks how many days the company has to file the appointment. Which of the following best states Indiana's rule on the timing of a producer appointment?

No deadline; appointment must precede acting

Fifteen days after the first application

Thirty days after the effective date

Ten days after the first application

Question 2: An applicant asks the Department what basic personal qualifications Indiana attaches to a resident producer licence, apart from coursework, testing and fees. Which of the following pairs correctly states Indiana's age requirement and its residency requirement for a resident producer applicant?

Twenty-one years old; Indiana residence only

Eighteen years old; residence in any state

Twenty-one years old; principal place of business

Eighteen years old; Indiana residence or office

Question 3: Two carriers write coverage on Indiana risks. One holds a certificate of authority from the Department and is subject to Indiana rate, form and solvency regulation; the other holds none. Which term describes the carrier that holds the certificate?

A reciprocal insurer

A mutual insurer

An admitted insurer

A non-admitted insurer

Question 4: A Terre Haute candidate completed her approved property and casualty prelicensing course in January and then put off testing while she moved house and changed employers. Which of the following describes the window Indiana allows between course completion and the state examination?

Two years from course completion

Six months from course completion

Ninety days from course completion

The certificate never expires

Question 5: An Indiana adjuster tells a homeowner in Evansville that her policy excludes a water loss that is plainly covered, and he knows the exclusion does not apply. Among the practices defined in IC 27-4-1-4.5, which one does that conduct match?

Compelling an insured to institute litigation

Delaying payment with duplicate claim forms

Misrepresenting policy provisions relating to coverage

Settling on an altered insurance application

Question 6: Two Indiana producers disagree about the role of IC 27-4-1-4.5 within the unfair competition chapter. One insists that the section forbids the listed conduct outright and fixes the penalty for it. Which of the following states that section's function correctly?

It sets the penalty for each violation

It creates a private lawsuit for insureds

It fixes claim payment deadlines in days

It defines the practices without prohibiting them

Question 7: The commissioner mails an Indiana property and casualty producer written notice that his license is being revoked. The producer wants the matter heard before an administrative law judge. Within what period after that notice is mailed must he demand a hearing?

Thirty days

Sixty-three days

Forty-five days

Ninety days

Question 8: An Indiana insurer will not pay the plainly owed dwelling portion of a fire loss until the insured agrees to accept a much lower figure on the contents portion. Which of the practices defined in IC 27-4-1-4.5 does this describe?

Refusing payment without a reasonable investigation

Compelling the insured to institute litigation

Settling upon an altered insurance application

Withholding one clear coverage to influence another

Question 9: An Indiana producer moves her agency to a new Warsaw address and updates only her printed business cards. Four months later the Department's mail to her old office is returned undeliverable. Which of the following BEST describes her position under IC 27-1-15.6-12?

No duty arises until her renewal

She had thirty days; discipline may follow

Only a written warning is available

She had sixty-three days to report

Question 10: An insured in Gary is convinced that her carrier violated Indiana's unfair claim settlement practices statute, and she wants to sue the company under that statute for her damages. Which of the following describes what Indiana law actually offers her?

A treble damages claim under the statute

An automatic arbitration hearing before the Board

No private action; the Commissioner enforces

A statutory penalty payable to the insured

Question 11: At a trade association meeting in Evansville, a producer circulates a written note claiming that a competing property insurer cannot pay its claims and will be in receivership by spring, knowing the claim is untrue. Which enumerated practice has the producer committed?

False advertising

Unfair discrimination

Rebating

Defamation

Question 12: A producer in New Albany wants to pay a local mortgage broker a flat referral payment for every client name she passes along, whether or not the client ends up buying a policy. Which of the following pair of conditions makes that payment lawful in Indiana?

No selling, soliciting or negotiating; unconditional payment

Licensed broker; payment conditioned on purchase

Unlicensed broker; payment scaled to premium

Insurer approval obtained; referral fee disclosed

Question 13: Two Kokomo homeowners applicants present the same construction, protection class and loss history, yet one is quoted a higher rate solely because of a characteristic that has no bearing on the risk. Which enumerated unfair method of competition does the insurer's rating illustrate?

Rebating

Unfair discrimination

False advertising

Defamation

Question 14: A chartered property casualty underwriter moving her book of business to Fishers emails the Department a photocopy of her designation and asks for relief from Indiana's entry requirements before she applies. Which of the following describes what a waiver under IC 27-1-15.6-9 gives her?

Relief from the prelicensing course only

Relief from the state examination only

Relief from both course and examination

Relief from the application fee only

Question 15: An Indiana insurer is found to have committed an unfair or deceptive act, and the Commissioner also finds the company knew or reasonably should have known that the act violated the chapter. Which maximum penalty for each violation applies under IC 27-4-1-6?

Twenty-five thousand dollars

Ten thousand dollars

No monetary penalty is authorized

Fifty thousand dollars

Question 16: A property and casualty producer born in September receives her Indiana resident licence in March and asks the Department how long it will run before she must renew. Which of the following describes the term Indiana assigns and the date on which the licence expires?

Two years, ending on September's last day

One year, ending on the issue anniversary

Two years, ending on December thirty-first

Two years, ending on March's last day

Question 17: An insurer admitted in Indiana files every other required document on time but never submits its audited annual report for the year. The Department's published schedule of fines attaches a penalty that grows the longer the report stays unfiled. Which penalty applies?

One hundred dollars for each day

Fifty dollars for each day

Twenty-five thousand dollars in total

Fifty dollars to ten thousand dollars

Question 18: During a routine review the commissioner discovers that a resident producer's original license application concealed a prior administrative action and gave materially untrue answers about his history. Which of the following does Indiana's producer licensing law authorize on that finding?

A caution letter and nothing further

Nothing, since the license already issued

Referral to a federal regulator instead

Suspension or revocation of the license

Question 19: A visitor injured in a fall at an Evansville warehouse claims against the occupier's liability policy, and that insurer is later placed in liquidation. Her damages fall under medical, wage and pain headings. How does the guaranty statute count her situation?

Each category of damages is a claim

All of it is a single claim

Medical damages are excluded from counting

The count depends on the policy limit

Question 20: An insurer organized in another state wants to begin writing homeowners policies for Indiana residents. Before it may transact any insurance business in Indiana, the Department must issue it a specific document. Which document must the company obtain first?

A surplus lines producer licence

A resident producer licence

A certificate of authority

A certificate of compliance

IPCI Indiana Property and Casualty Insurance Exam - Set 1 - Part 1