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Connecticut Property and Casualty Insurance Exam
COMPLETE QUESTIONS AND DETAILED SOLUTIONS
LATEST UPDATE THIS YEAR-JUST RELEASED
Connecticut Property and Casualty Insurance Exam, each with an answer and a summarized rationale
based on Connecticut General Statutes (CGS), NAIC model acts, and standard P&C principles.
The questions begin after a point-form summary of actual exam coverage areas.
Summarized Exam Topics Covered (Point Form – Accurate for CT P&C Exam)
• Domestic Violence Protections (CGS § 38a-478e): Insurers cannot discriminate based on
domestic violence victim status; cannot cancel, deny, or increase premiums solely because the
applicant is a victim; claims related to domestic violence are covered like any other loss.
• Unfair Trade Practices Act (CUPTA, CGS § 42-110b): Prohibits unfair or deceptive acts in the
business of insurance; includes misrepresentation, false advertising, rebating, defamation,
unfair discrimination.
• Cancellation & Nonrenewal – Personal Auto: After 60 days of coverage, cancellation allowed
only for nonpayment of premium, license suspension/revocation, or material misrepresentation.
• Notice of Cancellation: Must be in writing; personal auto = 20 days for nonpayment, 30 days for
other grounds; commercial policies have specific timeframes.
• Insurance Fraud (CGS § 53a-215): Fraudulent insurance acts are felonies; insurers must report
suspected fraud to the Insurance Department.
• Personal Lines (Auto, Homeowners): Definitions, coverages, exclusions, endorsements,
deductibles, actual cash value vs. replacement cost.
• Commercial Lines (General Liability, Commercial Auto, Property, Workers' Compensation):
Basic coverages, limits, exclusions, experience modification.
• Workers' Compensation (CGS § 31-275 – 31-354a): Mandatory for most employers; exclusive
remedy; penalties for noncompliance.
• Surety Bonds: License & permit bonds, contractor license bonds, fidelity bonds (employee
dishonesty), court bonds.
• Property Coverage (Dwelling, Homeowners, Commercial Property): Perils named vs. open
perils (all-risk), exclusions, coinsurance, valuation.
• Liability Insurance: Occurrence vs. claims-made triggers; bodily injury & property damage;
covered vs. excluded causes.
• Uninsured/Underinsured Motorist (UM/UIM) Coverage: Mandatory in CT; limits cannot exceed
the liability limits; stacking allowed under certain conditions.
• Medical Payments (MedPay) – Auto & Homeowners: No-fault coverage for medical expenses
regardless of fault.
• Inland Marine: Equipment, tools, cargo, fine arts, jewelry (scheduled).
• Ocean Marine: Hull, cargo, protection & indemnity (P&I).
• Bail Bond Insurance: Written by surety insurers; bail bondsmen must be licensed.
• Flood Insurance (NFIP): Not sold by standard insurers; available through NFIP; waiting period
typically 30 days.
• Connecticut FAIR Plan: Residual market insurer for property insurance (fire, extended coverage)
for risks unable to obtain coverage in the voluntary market.
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• Auto Medical Payments (AMP): Required on all auto policies in CT; pays medical bills regardless
of fault.
• Consumer Rights: Free credit report annually, notice of adverse action, right to dispute errors.
• Producer (Agent/Broker) Licensing: Resident producers must be licensed; continuing education
requirements; appointments with insurers.
• Prohibited Practices: Rebating (returning premium as inducement unless stated in policy),
twisting (misleading replacement), sliding (adding coverages without consent).
1. An auto insurance applicant in Connecticut discloses that she was a victim of domestic violence but
has no related driving violations. The insurer increases her premium by 15% solely based on this
disclosure. Under Connecticut law, is this permissible?
A) Yes, insurers may rate on any factor not specifically prohibited.
B) No, insurers cannot increase premiums solely because an applicant is a victim of domestic violence.
C) Yes, if the applicant has filed two or more claims related to domestic violence.
D) No, but the insurer may cancel the policy after 60 days.
Answer: B
Rationale: CGS § 38a-478e prohibits insurers from discriminating based on domestic violence victim
status. Premiums cannot be increased, and coverage cannot be denied or canceled solely because the
applicant is a victim.
2. A Connecticut driver has an auto policy with liability limits of 100/300/50. She is injured in an accident
caused by a motorist with no insurance. Her UM coverage limit is the same as her liability limits. What is
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the maximum amount she can collect under her UM coverage for bodily injury?
A) 50,000B)50,000B)100,000 per person
/ 300,000peraccident(subjecttoper-personlimit)C)300,000peraccident(subjecttoper-personlimit)C)300,00
0 total
D) 100,000peraccidenttotal∗∗Answer:B∗∗∗Rationale:InConnecticut,UM/UIMcoveragelimitscannotexcee
dtheliabilitylimits.Thecoverageappliesperperson/peraccident.Here,100/300meansupto100,000peraccide
nttotal∗∗Answer:B∗∗∗Rationale:InConnecticut,UM/UIMcoveragelimitscannotexceedtheliabilitylimits.The
coverageappliesperperson/peraccident.Here,100/300meansupto100,000 per person, $300,000 per
accident, subject to policy terms.*
3. A homeowners insurance policy in Connecticut must provide a notice of cancellation to the insured at
least how many days before the effective cancellation date for nonpayment of premium?
A) 10 days
B) 20 days
C) 30 days
D) 45 days
Answer: B
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Rationale: For homeowners policies, at least 20 days' written notice is required for cancellation due to
nonpayment of premium. For other grounds, longer notice periods apply.
4. An auto insurance producer in Connecticut is found to have engaged in “twisting” – convincing a
policyholder to replace an existing policy with a new one that provides essentially the same coverage
but at a higher premium, with no additional benefit. This is:
A) Permitted if the producer discloses all policy terms.
B) A prohibited practice under Connecticut’s Unfair Trade Practices Act.
C) Allowed if the policyholder signs a waiver.
D) Permitted only for commercial policies, not personal lines.
Answer: B
Rationale: Twisting is defined as the practice of inducing a policyholder to lapse, forfeit, or surrender an
existing policy for the purpose of replacing it with another policy without a reasonable benefit. It is
prohibited under Connecticut’s Unfair Trade Practices Act (CUPTA).
5. A contractor in Connecticut fails to pay his workers’ compensation insurance premium. The insurer
cancels the policy. What is the penalty for the employer if an employee is injured during the cancellation
period and no other coverage is in place?
Connecticut Property and Casualty Insurance Exam
COMPLETE QUESTIONS AND DETAILED SOLUTIONS
LATEST UPDATE THIS YEAR-JUST RELEASED
Connecticut Property and Casualty Insurance Exam, each with an answer and a summarized rationale
based on Connecticut General Statutes (CGS), NAIC model acts, and standard P&C principles.
The questions begin after a point-form summary of actual exam coverage areas.
Summarized Exam Topics Covered (Point Form – Accurate for CT P&C Exam)
• Domestic Violence Protections (CGS § 38a-478e): Insurers cannot discriminate based on
domestic violence victim status; cannot cancel, deny, or increase premiums solely because the
applicant is a victim; claims related to domestic violence are covered like any other loss.
• Unfair Trade Practices Act (CUPTA, CGS § 42-110b): Prohibits unfair or deceptive acts in the
business of insurance; includes misrepresentation, false advertising, rebating, defamation,
unfair discrimination.
• Cancellation & Nonrenewal – Personal Auto: After 60 days of coverage, cancellation allowed
only for nonpayment of premium, license suspension/revocation, or material misrepresentation.
• Notice of Cancellation: Must be in writing; personal auto = 20 days for nonpayment, 30 days for
other grounds; commercial policies have specific timeframes.
• Insurance Fraud (CGS § 53a-215): Fraudulent insurance acts are felonies; insurers must report
suspected fraud to the Insurance Department.
• Personal Lines (Auto, Homeowners): Definitions, coverages, exclusions, endorsements,
deductibles, actual cash value vs. replacement cost.
• Commercial Lines (General Liability, Commercial Auto, Property, Workers' Compensation):
Basic coverages, limits, exclusions, experience modification.
• Workers' Compensation (CGS § 31-275 – 31-354a): Mandatory for most employers; exclusive
remedy; penalties for noncompliance.
• Surety Bonds: License & permit bonds, contractor license bonds, fidelity bonds (employee
dishonesty), court bonds.
• Property Coverage (Dwelling, Homeowners, Commercial Property): Perils named vs. open
perils (all-risk), exclusions, coinsurance, valuation.
• Liability Insurance: Occurrence vs. claims-made triggers; bodily injury & property damage;
covered vs. excluded causes.
• Uninsured/Underinsured Motorist (UM/UIM) Coverage: Mandatory in CT; limits cannot exceed
the liability limits; stacking allowed under certain conditions.
• Medical Payments (MedPay) – Auto & Homeowners: No-fault coverage for medical expenses
regardless of fault.
• Inland Marine: Equipment, tools, cargo, fine arts, jewelry (scheduled).
• Ocean Marine: Hull, cargo, protection & indemnity (P&I).
• Bail Bond Insurance: Written by surety insurers; bail bondsmen must be licensed.
• Flood Insurance (NFIP): Not sold by standard insurers; available through NFIP; waiting period
typically 30 days.
• Connecticut FAIR Plan: Residual market insurer for property insurance (fire, extended coverage)
for risks unable to obtain coverage in the voluntary market.
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• Auto Medical Payments (AMP): Required on all auto policies in CT; pays medical bills regardless
of fault.
• Consumer Rights: Free credit report annually, notice of adverse action, right to dispute errors.
• Producer (Agent/Broker) Licensing: Resident producers must be licensed; continuing education
requirements; appointments with insurers.
• Prohibited Practices: Rebating (returning premium as inducement unless stated in policy),
twisting (misleading replacement), sliding (adding coverages without consent).
1. An auto insurance applicant in Connecticut discloses that she was a victim of domestic violence but
has no related driving violations. The insurer increases her premium by 15% solely based on this
disclosure. Under Connecticut law, is this permissible?
A) Yes, insurers may rate on any factor not specifically prohibited.
B) No, insurers cannot increase premiums solely because an applicant is a victim of domestic violence.
C) Yes, if the applicant has filed two or more claims related to domestic violence.
D) No, but the insurer may cancel the policy after 60 days.
Answer: B
Rationale: CGS § 38a-478e prohibits insurers from discriminating based on domestic violence victim
status. Premiums cannot be increased, and coverage cannot be denied or canceled solely because the
applicant is a victim.
2. A Connecticut driver has an auto policy with liability limits of 100/300/50. She is injured in an accident
caused by a motorist with no insurance. Her UM coverage limit is the same as her liability limits. What is
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the maximum amount she can collect under her UM coverage for bodily injury?
A) 50,000B)50,000B)100,000 per person
/ 300,000peraccident(subjecttoper-personlimit)C)300,000peraccident(subjecttoper-personlimit)C)300,00
0 total
D) 100,000peraccidenttotal∗∗Answer:B∗∗∗Rationale:InConnecticut,UM/UIMcoveragelimitscannotexcee
dtheliabilitylimits.Thecoverageappliesperperson/peraccident.Here,100/300meansupto100,000peraccide
nttotal∗∗Answer:B∗∗∗Rationale:InConnecticut,UM/UIMcoveragelimitscannotexceedtheliabilitylimits.The
coverageappliesperperson/peraccident.Here,100/300meansupto100,000 per person, $300,000 per
accident, subject to policy terms.*
3. A homeowners insurance policy in Connecticut must provide a notice of cancellation to the insured at
least how many days before the effective cancellation date for nonpayment of premium?
A) 10 days
B) 20 days
C) 30 days
D) 45 days
Answer: B
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Rationale: For homeowners policies, at least 20 days' written notice is required for cancellation due to
nonpayment of premium. For other grounds, longer notice periods apply.
4. An auto insurance producer in Connecticut is found to have engaged in “twisting” – convincing a
policyholder to replace an existing policy with a new one that provides essentially the same coverage
but at a higher premium, with no additional benefit. This is:
A) Permitted if the producer discloses all policy terms.
B) A prohibited practice under Connecticut’s Unfair Trade Practices Act.
C) Allowed if the policyholder signs a waiver.
D) Permitted only for commercial policies, not personal lines.
Answer: B
Rationale: Twisting is defined as the practice of inducing a policyholder to lapse, forfeit, or surrender an
existing policy for the purpose of replacing it with another policy without a reasonable benefit. It is
prohibited under Connecticut’s Unfair Trade Practices Act (CUPTA).
5. A contractor in Connecticut fails to pay his workers’ compensation insurance premium. The insurer
cancels the policy. What is the penalty for the employer if an employee is injured during the cancellation
period and no other coverage is in place?
