Property Insurance Test PearsonVue (LAW) Complete Guide
1. What is the definition of a domestic insurer in this state?
A. A company that operates in this state but is incorporated in another state
B. A company that operates in this state but is domiciled in another state
C. A company headquartered in this state
D. A company incorporated in this state
Correct answer: D. A company incorporated in this state
2. What type of insurance policy can a limited insurance representative license be issued for?
A. Fire
B. Automobile
C. Mortgage Guaranty
D. Health
Correct answer: C. Mortgage Guaranty
3. What action must the Insurance Commissioner take when determining that a producer has violated
the insurance law?
A. Place the licensee on probation immediately
B. Publish notice of the violation
C. Hold a hearing on the infraction
D. Submit the infraction to the Department of Insurance for review
Correct answer: C. Hold a hearing on the infraction
,The Insurance Commissioner may suspend, revoke, or deny a producer's license for all of the following
reasons EXCEPT:
A. Untrue statements on the license application
B. Conviction of a misdemeanor
C. Incompetency
D. Coverting funds ✔️B. Conviction of a misdemeanor
An insurer that generally fails to affirm or deny coverage of claims within a reasonable period of time
after receiving Proof of Loss may be found guilty of:
A. a breach of fiduciary responsibility
B. an improper claims practice
C. defamation
D. misrepresentation ✔️B. an improper claims practice
After an insurance producer license is issued, a licensee MUST complete how many hours of approved
continuing education courses every two years?
A. 10
B. 15
C. 20
D. 24 ✔️D. 24
In order to be reimbursed for a covered loss under a Standard Fire policy in this state, an insured MUST:
A. contact an independent claims adjuster
B. protect the property from further loss
C. provide a proof of loss statement within 10 days
D. obtain a written appraisal of the damages ✔️B. protect the property from further loss
, A candidate for licensure as a property insurance producer must have completed a MINIMUM of how
many hours of prelicensing education?
A. 45
B. 30
C. 15
D. 7.5 ✔️C. 15
Prelicensing: 15 hrs
Continuing education: 24 hrs in 24 mo
Making false or misleading statements about dividends or shares of surplus previously paid on an
insurance policy is known as:
A. unfair discrimination
B. rebating
C. coercion
D. misrepresentation ✔️D. misrepresentation
An insurer that permits different rate classifications for individuals of the same class and same hazard
may be guilty of
A. boycotting
B. unfair discrimination
C. misrepresentation
D. defamation ✔️B. unfair discrimination
Which of the following situations is considered an insurance transaction?
1. What is the definition of a domestic insurer in this state?
A. A company that operates in this state but is incorporated in another state
B. A company that operates in this state but is domiciled in another state
C. A company headquartered in this state
D. A company incorporated in this state
Correct answer: D. A company incorporated in this state
2. What type of insurance policy can a limited insurance representative license be issued for?
A. Fire
B. Automobile
C. Mortgage Guaranty
D. Health
Correct answer: C. Mortgage Guaranty
3. What action must the Insurance Commissioner take when determining that a producer has violated
the insurance law?
A. Place the licensee on probation immediately
B. Publish notice of the violation
C. Hold a hearing on the infraction
D. Submit the infraction to the Department of Insurance for review
Correct answer: C. Hold a hearing on the infraction
,The Insurance Commissioner may suspend, revoke, or deny a producer's license for all of the following
reasons EXCEPT:
A. Untrue statements on the license application
B. Conviction of a misdemeanor
C. Incompetency
D. Coverting funds ✔️B. Conviction of a misdemeanor
An insurer that generally fails to affirm or deny coverage of claims within a reasonable period of time
after receiving Proof of Loss may be found guilty of:
A. a breach of fiduciary responsibility
B. an improper claims practice
C. defamation
D. misrepresentation ✔️B. an improper claims practice
After an insurance producer license is issued, a licensee MUST complete how many hours of approved
continuing education courses every two years?
A. 10
B. 15
C. 20
D. 24 ✔️D. 24
In order to be reimbursed for a covered loss under a Standard Fire policy in this state, an insured MUST:
A. contact an independent claims adjuster
B. protect the property from further loss
C. provide a proof of loss statement within 10 days
D. obtain a written appraisal of the damages ✔️B. protect the property from further loss
, A candidate for licensure as a property insurance producer must have completed a MINIMUM of how
many hours of prelicensing education?
A. 45
B. 30
C. 15
D. 7.5 ✔️C. 15
Prelicensing: 15 hrs
Continuing education: 24 hrs in 24 mo
Making false or misleading statements about dividends or shares of surplus previously paid on an
insurance policy is known as:
A. unfair discrimination
B. rebating
C. coercion
D. misrepresentation ✔️D. misrepresentation
An insurer that permits different rate classifications for individuals of the same class and same hazard
may be guilty of
A. boycotting
B. unfair discrimination
C. misrepresentation
D. defamation ✔️B. unfair discrimination
Which of the following situations is considered an insurance transaction?
