Property State Exam Questions and Correct Answers

Contracts between an independent agent and a company cannot be terminated until? ~~One year in effect (COMPANY MUST PROVIDE 180 DAY WRITTEN NOTICE OF TERMINATION TO THE INDEPENDENT AGENT) General Cancellation Provisions ~~- Individual auto and property policies (fire and extended perils) - 30 days written notice of specific reasons for cancellation - All policies for NONPAYMENT OF PREMIUM: 10 days written notice Residential fire and extended coverage that have been in effect for more than 60 days can only be canceled for: ~~- nonpayment of premium - policy originally obtained by fraud or misrepresentation - any act that measurably increases the risk originally accepted Cancellation of personal auto insurance in effect for more than 60 days may only be cancelled for: ~~- nonpayment of premium - fraud - insureds conviction of a crime arising out of facts that materially increase risk - suspensions or revocation of license within 12 months prior to cancellation - auto fails inspection, unfit for use, altered to increase risk, or not used for personal auto Cancellation of commercial fire and marine insurance ~~10 day written notice of cancellation will be sent to the name insured if buildings: - have had fire loss that has not been repaired within 60 days after insurance settlement - have been unoccupied for 60 consecutive days - have an order to be vacated or demolished due to poor physical conditions - no water, heat, or lighting for 30 days MINIMUM UNINSURED MOTORISTS LIMITS FOR ILLINOIS ~~25/50 unless rejected by insured, coverage must equal insureds bodily injury liability limits Workers Compensation must have been rejected by how many insurers within 60 days? ~~2