North Dakota Personal Lines Insurance License Exam — All Questions

What minimum auto liability limits must a North Dakota personal auto policy carry to meet the state's financial-responsibility law?

• a.$15,000 per person / $30,000 per accident bodily injury and $5,000 property damage
• b.$50,000 per person / $100,000 per accident bodily injury and $50,000 property damage
• c.$25,000 bodily injury per person, $50,000 bodily injury per accident, and $25,000 property damage✓
• d.$20,000 per person / $40,000 per accident bodily injury and $15,000 property damage

North Dakota sets minimum motor-vehicle liability limits of 25/50/25 — $25,000 bodily injury per person, $50,000 bodily injury per accident, and $25,000 property damage. These are floors; producers should offer higher limits to better protect the insured's assets. Source: N.D. Cent. Code ch. 39-16.1; verify current figures with the North Dakota Insurance Department (https://www.insurance.nd.gov).

How does North Dakota generally handle auto injury claims?

• a.It is a pure tort state with no first-party medical coverage required
• b.It bars all injury claims and routes them through a state fund
• c.It is a no-fault state: a driver's own policy pays personal-injury / basic-economic-loss benefits regardless of who caused the crash, subject to a threshold before suing✓
• d.It requires liability coverage but prohibits any first-party medical benefits

North Dakota is a no-fault state: each driver's own policy pays first-party injury benefits (PIP / basic economic loss) regardless of fault, and an injured person may sue the other driver only after meeting a statutory threshold. Confirm current no-fault rules with the North Dakota Insurance Department (https://www.insurance.nd.gov).

Besides liability coverage, what first-party coverage must a North Dakota personal auto policy include?

• a.Only comprehensive coverage
• b.Nothing beyond liability
• c.No-fault personal injury protection (PIP) basic no-fault benefits, because North Dakota is a no-fault state✓
• d.Flood coverage for the vehicle

As a no-fault state, North Dakota requires personal auto policies to include PIP (basic no-fault) benefits that pay the insured's own medical and wage-loss costs regardless of fault, in addition to liability coverage. Confirm the current minimum PIP benefit amount with the North Dakota Insurance Department (https://www.insurance.nd.gov).

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

• 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 North Dakota Insurance Department✓

North Dakota 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 North Dakota notice periods with the North Dakota Insurance Department.

Which best describes the body that writes and enforces North Dakota's insurance regulations affecting personal lines policies?

• a.The North Dakota Insurance Department, a state agency that supervises insurers and licenses producers✓
• b.A private trade association of insurers with no government authority
• c.The federal Department of Insurance in Washington, D.C.
• d.The county clerk's office where the policy is issued

Insurance in North Dakota is regulated at the state level by the North Dakota Insurance Department. There is no federal department of insurance; each state supervises its own market, licenses producers, and enforces cancellation, rating, and coverage rules. Source: North Dakota Insurance Department (https://www.insurance.nd.gov).