New Hampshire Personal Lines Insurance License Exam — All Questions

Which statement best reflects New Hampshire's approach to mandatory auto liability insurance?

• a.Every driver must carry auto liability insurance as a strict condition of registration, with no exceptions
• b.New Hampshire prohibits drivers from buying auto liability insurance
• c.New Hampshire is well known as one of the few states that does not require every driver to carry auto liability insurance, though drivers must be able to demonstrate financial responsibility and coverage can be required after certain violations✓
• d.Auto insurance in New Hampshire is regulated entirely by the federal government

New Hampshire is distinctive: it does not require every driver to carry auto liability insurance as a blanket condition of registration, but drivers must be able to demonstrate financial responsibility, and insurance may be required after certain violations or at-fault accidents. When a policy is carried or required, New Hampshire's statutory minimum limits are 25/50/25 per RSA 264:20 (verified this session on gc.nh.gov). Confirm the exact current requirement with the New Hampshire Insurance Department (https://www.nh.gov/insurance/).

When a New Hampshire client does carry auto liability insurance and asks for the exact minimum limits, what is the best professional response?

• a.Quote any common figure from memory; the minimums never change
• b.Explain that state law sets minimum limits when a policy is written or required, and confirm the current figures with the New Hampshire Insurance Department✓
• c.Tell the client no minimum limits apply under any circumstances
• d.Refer the client to federal auto-insurance regulations

New Hampshire does not compel every driver to buy auto liability insurance, but when a policy is written or required the statutory minimum limits are 25/50/25 — $25,000 per person / $50,000 per accident for bodily injury and $25,000 for property damage, per RSA 264:20 (verified this session on gc.nh.gov). Because statutory figures can change, confirm the current numbers with the New Hampshire Insurance Department (https://www.nh.gov/insurance/) rather than relying on memory, and advise the client to carry at least the minimum.

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

• 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 New Hampshire Insurance Department✓

New Hampshire, 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 New Hampshire notice periods with the New Hampshire Insurance Department.

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

• a.UM/UIM is prohibited in the state
• b.UM/UIM automatically replaces liability coverage
• c.UM/UIM protects the insured when a responsible driver has no or insufficient coverage; the specifics of how it is offered are set by New Hampshire law✓
• d.UM/UIM is only available to commercial fleets

Uninsured/underinsured motorist coverage fills the gap when the responsible driver has no or insufficient coverage — especially relevant in a state where not every driver must carry liability insurance. How it must be offered, included, or rejected is governed by state law; confirm the current UM/UIM rules with the New Hampshire Insurance Department (https://www.nh.gov/insurance/).

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

• a.The New Hampshire Insurance Department, a state agency led by the Insurance Commissioner✓
• b.A private trade association of insurers with no government authority
• c.The federal Department of Insurance in Washington, D.C.
• d.The town clerk's office where the policy is issued

Insurance in New Hampshire is regulated at the state level by the New Hampshire Insurance Department. There is no federal department of insurance; each state (including New Hampshire) supervises its own market, licenses producers, and enforces cancellation, rating, and coverage rules. Confirm current details at https://www.nh.gov/insurance/.