State Insurance Regulations Flashcards
7 cards from real CCP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 State Insurance Regulations flashcards as text
Which of the following best describes an 'admitted' insurer under state insurance law?
Answer: An insurer licensed and subject to all state regulations
An admitted insurer holds a certificate of authority from the state, must comply with all state regulations, and is covered by the state guaranty fund.
Under state insurance regulations, what is the primary purpose of a state guaranty association?
Answer: To pay claims when a licensed insurer becomes insolvent
State guaranty associations protect policyholders by paying covered claims up to statutory limits when an admitted insurer becomes insolvent.
A claimant living in State A is injured by a driver insured in State B. Which state's claims regulations generally govern the handling of the liability claim?
Answer: Typically the state where the accident occurred
Liability claims are typically governed by the law of the state where the accident or loss occurred (lex loci delicti).
Under most state regulations, which type of policy must include a mandatory 'standard fire policy' form or its equivalent?
Answer: Homeowners and dwelling fire policies
Most states require homeowners and dwelling fire policies to incorporate the standard fire policy provisions or their approved equivalent.
What is the significance of a 'consent to rate' filing in state insurance regulation?
Answer: The insured agrees to a rate higher than the filed maximum
A consent-to-rate agreement allows an insurer to charge a rate above the maximum filed rate when the insured signs a written consent acknowledging the deviation.
Which state regulation concept requires insurers to handle claims consistently regardless of whether the claimant is represented by an attorney?
Answer: Good faith and fair dealing obligation
The implied covenant of good faith and fair dealing requires insurers to treat all claimants equitably regardless of legal representation status.
Under state regulations, what document must an insurer typically provide within a specified timeframe if it plans to non-renew a personal lines policy?
Answer: A written notice of non-renewal with the reason stated
State regulations require insurers to provide advance written notice of non-renewal, typically 30–60 days before policy expiration, stating the reason.