IPCI - Indiana Property and Casualty Insurance Exam

Question 21: A producer in Merrillville writes most of her policies on her own household, on her siblings and on two businesses she partly owns. Which of the following states the point at which Indiana treats a licence as used principally for controlled business, and what the test measures?

Fifty percent of commissions over twelve months

Twenty-five percent of policies each calendar year

Fifty percent of premium each calendar year

Twenty-five percent of commissions over twelve months

Question 22: A producer who moved to Indiana from a state that gives insurers fifteen days to acknowledge a claim goes looking for the same deadline in the list of practices at IC 27-4-1-4.5. Which of the following BEST describes what she will find there?

Reasonableness standards rather than day counts

A fifteen day acknowledgment rule

A thirty day investigation deadline

A ten day claim payment deadline

Question 23: An Indiana liability insurer's own file shows its insured plainly at fault for a rear-end collision in Lafayette, yet the carrier keeps the claim open for months and makes no serious offer. Which practice defined in IC 27-4-1-4.5 does this describe?

Misrepresenting facts about the coverage available

Requiring duplicate proof of loss forms

Settling for less than advertising promised

Refusing good faith settlement despite clear liability

Question 24: When an insolvent member insurer is liquidated, an Indiana policyholder who has paid premium for coverage that will never be provided may recover the unearned portion from the Indiana Insurance Guaranty Association, subject to a per policy limit. What is that limit?

One thousand dollars per policy

Ten thousand dollars per policy

Twenty-five thousand dollars per policy

Three hundred thousand dollars per policy

Question 25: The commissioner receives an order from the state child support bureau concerning a licensed Indiana producer who has fallen behind on support payments. His insurance record is otherwise clean. What does Indiana law direct the commissioner to do with that license?

Impose a ten thousand dollar penalty

Revoke the license permanently

Take no action without insurance misconduct

Place the license on probationary status

Question 26: An agency principal asks where Indiana's twenty-five dollar limit on promotional gifts actually comes from, since she cannot find any dollar figure in the unfair competition statute itself. Which of the following BEST describes the source and status of that figure?

It appears in the rebating statute

It is a federal safe harbor

Department guidance interprets the statutory prohibition

It comes from an Indiana court

Question 27: An Indiana homeowner receives three separate drafts from her insurer after a fire in Terre Haute, and none of them shows which part of the policy paid what. Which practice defined in IC 27-4-1-4.5 has the insurer committed here?

Delaying investigation with repetitive claim paperwork

Issuing payments without a coverage statement

Denying the claim without any investigation

Altering the application before settling the claim

Question 28: A policyholder complains to the Indiana Department of Insurance about the handling of a windstorm claim, and the Department forwards the complaint to the carrier. Under IC 27-4-1-5.6, how long does that insurer have to respond in writing?

Ten calendar days

Twenty calendar days

Thirty business days

Twenty business days

Question 29: A licensed producer in Seymour dies suddenly, and someone must service the agency's book of business while the estate is settled. Which of the following states the longest period Indiana allows a temporary resident insurance producer licence to run in that situation?

Thirty days at most

Ninety days at most

One hundred eighty days at most

One full year at most

Question 30: An Indiana insurer requires every claimant to file a preliminary claim report and then a formal proof of loss form asking for substantially the same information, which pushes payment back by weeks. Which defined practice under IC 27-4-1-4.5 does this describe?

Delaying payment by demanding duplicate information

Refusing to investigate before denying a claim

Misrepresenting pertinent facts about the policy

Ascribing fault to a faultless claimant

Question 31: A resident property and casualty producer is found to have violated the producer licensing chapter, and the commissioner elects a civil penalty rather than license action. Which monetary range does Indiana set for noncompliance with the insurance producer laws?

Up to twenty-five thousand dollars

One hundred to one thousand dollars

Fifty dollars to ten thousand dollars

Five hundred to five thousand dollars

Question 32: Two Indiana producers compare renewal plans over lunch in Carmel. One holds only a property and casualty licence; the other holds property and casualty together with accident and health. Which of the following describes how Indiana's three hour ethics requirement reaches each of them?

Only the accident and health licensee

Both producers owe three ethics hours

Neither producer owes any ethics hours

Only the property and casualty licensee

Question 33: The head of the Indiana Department of Insurance holds office through executive selection rather than through a statewide election or a legislative vote, and Indiana law names one official who makes that selection. Which of the following selects the Indiana Insurance Commissioner?

The Indiana General Assembly

Indiana voters at a general election

The National Association of Insurance Commissioners

The Governor of Indiana

Question 34: Before an Indiana surplus lines producer may place a commercial risk with a non-admitted insurer, the Department requires proof that the coverage cannot be found in the admitted market. Which showing satisfies that requirement as the Department describes it?

A signed statement from the applicant

A rate comparison against admitted market filings

Declinations from admitted companies writing that coverage

Departmental approval of the policy form

Question 35: Indiana requires a surplus lines producer to file the annual statement that the non-admitted insurer filed with its state of domicile and the NAIC. IC 27-1-15.8-4 sets the date for that filing. By when must the surplus lines producer file it?

Not later than March 31

On or before February 1

By the 20th day of each month

Within 30 days of the placement

Question 36: An Indiana surplus lines producer totals the gross premiums written on non-admitted placements for the year and must remit a tax on that figure to the Department. IC 27-1-15.8-4 fixes the rate. Which rate applies to those gross premiums?

One percent

Two percent

Five percent

Two and one-half percent

Question 37: A Kokomo insured backs into a parked truck and damages nothing but property. His producer explains the smallest property damage liability limit an Indiana auto policy may carry. Which of the following is that figure under the current text of IC 9-25-4-5?

Twenty-five thousand dollars

Ten thousand dollars

Fifty thousand dollars

Fifteen thousand dollars

Question 38: A driver in Muncie misses the premium due date on an Indiana personal auto policy that has been in force for a year, and the carrier moves to cancel on that ground. Under IC 27-7-6-5, what notice does nonpayment require?

Twenty days, with the reason stated

Thirty days, with no reason required

Ten days, with the reason stated

Sixty days before the next renewal date

Question 39: Three years ago a South Bend named insured rejected uninsured and underinsured motorist coverage in writing. The same insurer now issues her a replacement policy. Which of the following states what the insurer must do about those coverages on the new policy?

Offer both coverages again at every renewal

Add both coverages automatically without an offer

Obtain a fresh written rejection each term

Nothing, unless she later asks in writing

Question 40: An Indiana auto insurer moves a block of personal auto business to an affiliate following a merger, and every insured receives the same or broader coverage and approves the transfer. Under IC 27-7-6-6, what does the company owe those insureds?

No notice of intention not to renew

Twenty days written notice of nonrenewal

A refund of the unearned premium

A hearing before the Department of Insurance

IPCI Indiana Property and Casualty Insurance Exam - Set 1 - Part 2