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Property and Casualty Insurance: Questions
with Answers (100% Correct Answers)
Essential Insurance Act Answer: Under Michigan Essential Insurance Act, an
insurer cannot limt coverage or refuse to insure or renew coverage unless the
insurer has specific written underwriting rules that would allow that insurer to
reject an eligible applicant.
Essential Insurance Act: Rates Answer: -Rates must not be excessive,
inadequate, or unfairly discriminatory.
-Rates must be filled with the commissioner, A filing not disapproved within 60
days after its submission is considered approved.
Essential Insurance Act: Notice of rating system Answer: -Insurer will send
notice at least annually describing rating classification for premiums on policy
and how policyholder can appeal current rates affecting policy in question.
Essential Insurance act: Disputes between insured and insured Answer: -If a
person has been denied auto or homeowners coverage, he can demand
conference with insurer
-Insurer must comply within 30 days or matter may be determined by
Commissioner.
Essential Insurance Act: Grievance Procedure Answer: A person or
organization that doesn't agree with a filing may make a written appeal to
Commissioner for hearing.
Essential Insurance Act: Termination of Insurance 30 Day Answer: 30 Days
termination notice is required, except for nonpayment of premium (the notice
must specify cancellation date and reason)
Essential Insurance Act: Termination of insurance 20 Day Answer: Required
for canellations sent within the first 55 days of policy issuance
, 2
Essential Insurance Act: Termination of Insurance 10 Day Answer: Required
for casualty insurance
Essential Insurance Act: Casualty Insurance Termination Answer: Casualty
insurance may be canceled at any time by the insured and the premium will be
refunded by a pro rata business.
Essential Insurance: Producer Duties Answer: -Provide a quote for the type of
coverage requested by a qualified applicant.
-Tell a qualified applicant the number of insurers the producer represents and
provide additional quotes up request
-Supply a statement at auto renewal which explains insurance point system.
Essential Insurance: Insurance Declined Answer: -Producer and ompanty are
responsible for telling exact reason for declination.
Essential Insurance Act- Homeowners Insurance: Eligible Person Answer: -
Person who lives in, rents or owns a house, condo, cooperage unit, room or
apartment in Michigan.
Essential Insurance Act- Homeowners Insurance: Who is ineligible? Answer: -
Persons who in the last five years who have been convicted of:
Arson or conspiracy to commit arson
malicious destruction of property
Violations regarding the use of explosives, or misrepresentation or fraud
-Property that is used for illegal or particularly hazardous purposes.
Essential Insurance Act- Homeowners Insurance: Who is ineligible continued
Answer: Persons who
-refuse to purchase insurance for the appropriate minimum accounts
-have been canceled for nonpayment in the last two years
Property and Casualty Insurance: Questions
with Answers (100% Correct Answers)
Essential Insurance Act Answer: Under Michigan Essential Insurance Act, an
insurer cannot limt coverage or refuse to insure or renew coverage unless the
insurer has specific written underwriting rules that would allow that insurer to
reject an eligible applicant.
Essential Insurance Act: Rates Answer: -Rates must not be excessive,
inadequate, or unfairly discriminatory.
-Rates must be filled with the commissioner, A filing not disapproved within 60
days after its submission is considered approved.
Essential Insurance Act: Notice of rating system Answer: -Insurer will send
notice at least annually describing rating classification for premiums on policy
and how policyholder can appeal current rates affecting policy in question.
Essential Insurance act: Disputes between insured and insured Answer: -If a
person has been denied auto or homeowners coverage, he can demand
conference with insurer
-Insurer must comply within 30 days or matter may be determined by
Commissioner.
Essential Insurance Act: Grievance Procedure Answer: A person or
organization that doesn't agree with a filing may make a written appeal to
Commissioner for hearing.
Essential Insurance Act: Termination of Insurance 30 Day Answer: 30 Days
termination notice is required, except for nonpayment of premium (the notice
must specify cancellation date and reason)
Essential Insurance Act: Termination of insurance 20 Day Answer: Required
for canellations sent within the first 55 days of policy issuance
, 2
Essential Insurance Act: Termination of Insurance 10 Day Answer: Required
for casualty insurance
Essential Insurance Act: Casualty Insurance Termination Answer: Casualty
insurance may be canceled at any time by the insured and the premium will be
refunded by a pro rata business.
Essential Insurance: Producer Duties Answer: -Provide a quote for the type of
coverage requested by a qualified applicant.
-Tell a qualified applicant the number of insurers the producer represents and
provide additional quotes up request
-Supply a statement at auto renewal which explains insurance point system.
Essential Insurance: Insurance Declined Answer: -Producer and ompanty are
responsible for telling exact reason for declination.
Essential Insurance Act- Homeowners Insurance: Eligible Person Answer: -
Person who lives in, rents or owns a house, condo, cooperage unit, room or
apartment in Michigan.
Essential Insurance Act- Homeowners Insurance: Who is ineligible? Answer: -
Persons who in the last five years who have been convicted of:
Arson or conspiracy to commit arson
malicious destruction of property
Violations regarding the use of explosives, or misrepresentation or fraud
-Property that is used for illegal or particularly hazardous purposes.
Essential Insurance Act- Homeowners Insurance: Who is ineligible continued
Answer: Persons who
-refuse to purchase insurance for the appropriate minimum accounts
-have been canceled for nonpayment in the last two years
