Maryland property and casualty practice exam

1. What are the minimum bodily injury and property damage liability limits for a private passenger vehicle in Maryland under the Transportation Article?

1. $25,000 per person, $50,000 per accident, and $20,000 property damage
2. $30,000 per person, $60,000 per accident, and $15,000 property damage
3. $20,000 per person, $40,000 per accident, and $10,000 property damage
4. $50,000 per person, $100,000 per accident, and $25,000 property damage

2. Unless waived or rejected, Maryland personal injury protection (PIP) coverage must pay medical and related expenses of at least how much per person?

1. $1,000
2. $5,000
3. $2,500
4. $10,000

3. Maryland PIP coverage reimburses lost income at what percentage, for loss incurred within 3 years of the accident?

1. 60 percent
2. 66 and two-thirds percent
3. 100 percent
4. 85 percent

4. Under Maryland law, uninsured motorist coverage limits may not exceed which of the following?

1. Twice the Title 17 minimum limits
2. $100,000 per person
3. The limits of the liability coverage on the policy
4. The vehicle's actual cash value

5. On a Maryland private passenger auto policy, uninsured motorist limits default to what, unless the insured waives under 19-510?

1. The policy's liability limits
2. The Title 17 minimum limits only
3. $15,000 per person
4. Half of the policy's liability limits

1. How much advance written notice must a Maryland insurer give before cancelling or not renewing personal insurance, other than for nonpayment?

1. At least 10 days
2. At least 30 days
3. At least 60 days
4. At least 45 days

2. For cancellation of personal insurance in Maryland for nonpayment of premium, the insurer must give notice at least how many days in advance?

1. 5 days
2. 10 days
3. 30 days
4. 45 days

3. Which midterm cancellation ground applies only to a Maryland homeowner's policy?

1. Two at-fault claims in one year
2. A change in the insured's occupation
3. A reduction in the insured's credit score
4. Conviction of the insured for arson

4. Under Maryland 27-501, an insurer may not use a claim, traffic violation, or accident older than how long as a basis for cancelling or refusing to write private passenger auto coverage?

1. 1 year
2. 3 years
3. 2 years
4. 5 years

5. Under Maryland 27-501, an insurer may not cancel or refuse to renew an auto policy where the insured has had how many not-at-fault claims in the past 3 years?

1. Two or fewer
2. None
3. One or fewer
4. Three or fewer

1. How much of a covered claim does the Maryland Property and Casualty Insurance Guaranty Corporation pay?

1. Up to $100,000 with no deductible
2. The full amount with no limit
3. The amount over $100 and under $300,000
4. The amount over $500 and under $500,000

2. How does the Maryland guaranty corporation treat covered workers compensation claims?

1. They are capped at $300,000
2. They are paid in full
3. They are capped at $100,000
4. They are not covered

1. Under Maryland Labor and Employment 9-402, how may an employer secure payment of compensation to covered employees?

1. Only through a commercial insurer
2. Only through the state fund
3. By posting a bond only
4. By insurance, a governmental or private self-insurance group, or individual self-insurance

1. Under Md. Ins. Art. 27-304, an act such as misrepresenting facts or failing to acknowledge claims promptly is an unfair claim settlement practice when committed:

1. Even once
2. Only with intent to defraud
3. With a frequency indicating a general business practice
4. Only on a first-party claim

1. To sell insurance on behalf of an insurer in Maryland, a producer must hold a license and also have what?

1. An appointment from each insurer represented
2. A surety bond with the Commissioner
3. Membership in a producer association
4. A written agreement with the guaranty corporation

2. How many continuing education hours must most Maryland producers complete per renewal period, including at least 3 hours of ethics?

1. 24 hours
2. 12 hours
3. 16 hours
4. 40 hours