CCP State Insurance Regulations 3

Question 1

Which of the following best describes an 'admitted' insurer under state insurance law?

Accepted Answer

An insurer licensed and subject to all state regulations

Answer

An admitted insurer holds a certificate of authority from the state, must comply with all state regulations, and is covered by the state guaranty fund.

Question 2

Under state insurance regulations, what is the primary purpose of a state guaranty association?

Accepted Answer

To pay claims when a licensed insurer becomes insolvent

Answer

State guaranty associations protect policyholders by paying covered claims up to statutory limits when an admitted insurer becomes insolvent.

Question 3

A claimant living in State A is injured by a driver insured in State B. Which state's claims regulations generally govern the handling of the liability claim?

Accepted Answer

Typically the state where the accident occurred

Answer

Liability claims are typically governed by the law of the state where the accident or loss occurred (lex loci delicti).

Question 4

Under most state regulations, which type of policy must include a mandatory 'standard fire policy' form or its equivalent?

Accepted Answer

Homeowners and dwelling fire policies

Answer

Most states require homeowners and dwelling fire policies to incorporate the standard fire policy provisions or their approved equivalent.

Question 5

What is the significance of a 'consent to rate' filing in state insurance regulation?

Accepted Answer

The insured agrees to a rate higher than the filed maximum

Answer

A consent-to-rate agreement allows an insurer to charge a rate above the maximum filed rate when the insured signs a written consent acknowledging the deviation.

(CCP) Certified Claims Professional Practice Test

(CCP) Certified Claims Professional Practice Test

CCP State Insurance Regulations 3