Maine Personal Lines Insurance License Exam — All Questions

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

• a.$100,000 per person / $300,000 per accident bodily injury and $50,000 property damage
• b.$50,000 per person / $100,000 per accident bodily injury and $25,000 property damage✓
• c.$25,000 per person / $50,000 per accident bodily injury and $25,000 property damage
• d.$15,000 per person / $30,000 per accident bodily injury and $10,000 property damage

Maine requires among the highest state minimums: 50/100/25 — $50,000 per person / $100,000 per accident for bodily injury and $25,000 for property damage (a $125,000 combined single limit also qualifies). Source: Maine Bureau of Insurance (https://www.maine.gov/pfr/insurance), confirmed this session.

In addition to liability coverage, what minimum medical payments coverage must a Maine personal auto policy include?

• a.At least $2,000 per person in medical payments coverage✓
• b.At least $10,000 per person in personal injury protection
• c.No medical payments coverage is required
• d.At least $25,000 per person in medical payments coverage

Maine is unusual in requiring a personal auto policy to include a minimum of $2,000 per person in medical payments coverage, which helps pay medical costs for the insured and passengers regardless of fault. Source: Maine Bureau of Insurance (https://www.maine.gov/pfr/insurance), confirmed this session.

What uninsured/underinsured motorist (UM/UIM) coverage does Maine require on a personal auto policy?

• a.UM/UIM of at least $50,000 per person / $100,000 per accident, matching the liability limit when it exceeds the minimum unless the insured declines the higher amount✓
• b.UM/UIM of at least $10,000 per person only
• c.UM/UIM equal to double the property-damage limit
• d.UM/UIM is optional and rarely offered

Maine requires UM/UIM coverage of at least $50,000 per person / $100,000 per accident; when the insured's liability limit is higher than the minimum, the UM/UIM limit must match it unless the insured formally declines the higher amount. Source: Maine Bureau of Insurance (https://www.maine.gov/pfr/insurance), confirmed this session.

How does Maine handle liability for auto accidents?

• a.It is a traditional at-fault (tort) state; the at-fault driver is responsible for the other party's injuries and damage✓
• b.It routes injury claims through a state fund
• c.It bars all suits between drivers
• d.It is a pure no-fault state with mandatory PIP

Maine is a traditional at-fault (tort) state, not a no-fault/PIP state: the driver responsible for a crash is liable for the other party's injuries and property damage. That is why Maine pairs high liability minimums with required medical-payments and UM/UIM coverage. Source: Maine Bureau of Insurance (https://www.maine.gov/pfr/insurance).

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

• a.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 Maine Bureau of Insurance✓
• b.There are no notice rules; cancellation is governed solely by the contract
• c.Only the policyholder may ever cancel; insurers can never cancel mid-term
• d.An insurer may cancel any personal policy at any time for any reason with no notice

Maine, 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 Maine notice periods with the Maine Bureau of Insurance.