Louisiana Personal Lines Insurance License Exam — All Questions

What are the minimum auto liability limits a personal auto policy must generally carry to satisfy Louisiana's financial-responsibility law?

• a.$25,000 per person / $50,000 per accident bodily injury and $25,000 property damage
• b.$15,000 per person / $30,000 per accident bodily injury and $25,000 property damage✓
• c.$50,000 per person / $100,000 per accident bodily injury and $25,000 property damage
• d.$10,000 per person / $20,000 per accident bodily injury and $10,000 property damage

Louisiana's minimum auto liability limits are 15/30/25 — $15,000 per person / $30,000 per accident for bodily injury and $25,000 for property damage, per La. R.S. 32:900(B)(2) (verified this session on legis.la.gov). Producers should quote at least these limits and offer higher coverage. Verify current figures with the Louisiana Department of Insurance (https://www.ldi.la.gov/).

How does Louisiana handle liability for auto accidents?

• a.It is a pure no-fault state; each driver's own insurer pays regardless of fault
• b.It is a mandatory PIP state that bars suits over minor injuries
• c.It is a traditional at-fault (tort) state; the at-fault driver is responsible for the other party's injuries and damage✓
• d.It routes all injury claims through a state-run compensation fund

Louisiana is a traditional at-fault (tort) state: the driver responsible for a crash is liable for the other party's injuries and property damage, which is why liability limits matter. It does not use a no-fault/PIP system. Source: Louisiana Department of Insurance (https://www.ldi.la.gov/).

Louisiana is well known among the states for which auto-claims feature?

• a.A no-fault threshold that blocks most injury lawsuits
• b.A 'direct action' tradition that, in defined circumstances, lets an injured party proceed against the at-fault driver's liability insurer✓
• c.A ban on uninsured motorist coverage
• d.A single state insurer that writes all auto policies

Louisiana is known for its 'direct action' tradition, under which an injured party may in defined circumstances proceed against the at-fault driver's liability insurer. This sits within Louisiana's at-fault (tort) framework. Because the details are statutory and change, confirm current law with the Louisiana Department of Insurance or the state's statutes.

With respect to uninsured/underinsured motorist (UM/UIM) coverage on a Louisiana personal auto policy, which is generally true?

• a.UM/UIM is prohibited in Louisiana
• b.UM/UIM automatically replaces liability coverage
• c.Insurers must make UM/UIM coverage available, and a valid rejection generally must be made in writing on a required form✓
• d.UM/UIM is only available to commercial fleets

Louisiana auto insurers must make uninsured/underinsured motorist coverage available, and a valid rejection generally must be made in writing on a state-required form. UM/UIM protects the insured when the at-fault driver has no or insufficient coverage — important in an at-fault state like Louisiana. Confirm the current UM/UIM rejection rules with the Louisiana Department of Insurance.

How are cancellation and nonrenewal of a personal auto or homeowners policy regulated in Louisiana?

• a.An insurer may cancel any personal policy at any time for any reason with no notice
• b.Only the policyholder may ever cancel; insurers can never cancel mid-term
• c.There are no notice rules; cancellation is governed solely by the contract
• d.State law limits the reasons an insurer may cancel or nonrenew and requires advance written notice to the insured; confirm the exact notice period with the Louisiana Department of Insurance✓

Louisiana, like other states, restricts mid-term cancellation of personal auto and homeowners policies to specified reasons (such as nonpayment or material misrepresentation) and requires advance written notice of cancellation or nonrenewal. The exact number of days varies by reason and line — verify the current Louisiana notice periods with the Louisiana Department of Insurance.