.png){kind=logo}
PDF Download MI PROPERTY & CASUALTY EXAM - MICHIGAN-SPECIFIC
REGULATIONS AND LAWS
Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -54 Questions and Answers
-Format: Multiple-choice / Flashcard
Question 1: When may insurers cancel SFPs?
Answer:
Anytime with at least 10 days written notice.Question 2: What Nine (count 'em nine) Risk Classification Factors can be used for home insurance rating?
Answer:
- Amounts and types of coverage
- Security and safety devices installed.
- Repairable structural defects related to risk.
- Fire protection class
- Construction of structure (size, materials, etc)
- Insured's loss experience
- Use of smoking materials within structure
- Distance to the nearest fire hydrant
- Availabilty of law enforcement
Question 3: To be considered an "act of terrorism" the act must be ____ or ____ to human life.
Answer:
Violent; Dangerous Question 4: True/False: Claims from policies issued after the last date the insurer was a member of the MPCGA are covered.
Answer:
False; only claims filed while the insurance company is a member (before the last day it was a member) are covered.Question 5: A person must purchase insurance for at least ___ of the replacement cost when applying for a replacement cost policy.
Answer:
80% Question 6: The MPCGA will not cover refunds of unearned premium less than __ or greater than __.
Answer:
$50; $500
Question 7: Those who have had a policy canceled for non-payment within the last __ years are not eligible for homeowners insurance.
Answer:
2 Question 8: True/False: Claims covered by the MPCGA must be from insurance policies issued or payable to Michigan residents.
Answer:
True Question 9: The 2007 Act which extended TRIA through 2014 added several amendments, most importantly removing the requirement that a _____ person or interest must be involved for an act to be considered terrorism.
Answer:
Foreign
Question 10: In Michigan, the Standard Fire Policy (SFP) insures against loss from the perils of ____, ____, and ____.
Answer:
Fire; Lightning; Removal
Question 11: Replacement cost policies cannot be for less than ___.
Answer:
$35,000
Question 12: How many days must a SFP cover for removal (moving property to another location to protect it from further damage)?
Answer:
5 Question 13: If a person has not paid owed real property taxes in the last __ years, he or she is not eligible for homeowners insurance.
Answer:
2 Question 14: The MPCGA will cover a claim if it is ____ by an insolvent insurer.
Answer:
Unpaid Question 15: True/False: The Federal Terrorism Insurance Program covers the risk of loss of a future terrorist attack.
Answer:
False; FTIP shares the risk of loss with the insurance industry Question 16: True/False: Underwriting guidelines are strictly internal to the company which writes them.
Answer:
False; All underwriting guidelines must be filed with the Commissioner of Insurance
Question 17: A producer must inform eligible applicants of all _____ the agent represents.
Answer:
Insurance Companies Question 18: Under TRIA, an act of terrorism must be cerified by which three government officials?
Answer:
The Secretary of Treasury, The Secretary of State, and the Attorney General of the United States.Question 19: Each member of the MPCGA is given __ days notice of how much and when its dues are to be paid.
Answer:
30 Question 20: If in the last ___ years, a person has had a claim successfully denied for evidence of arson, misrepresentation, or fraud is not eligible for homeowners insurance.
Answer:
5 Question 21: If the insured and insurer fail to agree on the ACV or amount of loss, then either party may request that ACV be set by ____.
Answer:
Appraisal
Question 22: An insurer may terminate a producer for what 5 reasons?
Answer:
- Malfeasance
- Breach of Fiduciary trust or duty
- Violating the Insurance Code
- Failure to perform according to their contract
- Submitting less than 25 applications of home or auto insurance in a 12 month period.
.png)