Wyoming Personal Lines Insurance License Exam — All Questions

What minimum auto liability limits must a Wyoming personal auto policy carry?

• a.$15,000 per person / $30,000 per accident bodily injury and $10,000 property damage
• b.$25,000 per person / $50,000 per accident bodily injury and $20,000 property damage✓
• c.$30,000 per person / $60,000 per accident bodily injury and $25,000 property damage
• d.$50,000 per person / $100,000 per accident bodily injury and $50,000 property damage

Wyoming requires minimum auto liability limits of 25/50/20 — $25,000 bodily injury per person, $50,000 bodily injury per accident, and $20,000 property damage. Note the property-damage minimum is $20,000, higher than the $10,000 common in many states. These are minimums; producers should offer higher limits. Source: Wyoming Department of Insurance (https://doi.wyo.gov).

How does Wyoming treat fault after a covered auto accident?

• a.It is a pure no-fault state where each insurer pays its own insured
• b.It requires a full-tort/limited-tort election like Pennsylvania
• c.It is a tort ('at-fault') state — the at-fault driver and insurer are responsible for the other party's damages✓
• d.It bars all lawsuits arising from auto accidents

Wyoming is a traditional tort (at-fault) state. The driver who causes the crash — and that driver's liability insurer — is responsible for the injuries and property damage suffered by the other party. Wyoming is not a no-fault state and does not use a tort-option election. Source: Wyoming Department of Insurance (https://doi.wyo.gov).

A Wyoming client is surprised the required property-damage liability limit is higher than a friend's in a neighboring state. What is the best explanation?

• a.Wyoming has no property-damage liability requirement
• b.Property-damage limits are set by the vehicle's lender
• c.The federal government sets a national $5,000 minimum
• d.Wyoming's minimum property-damage liability is $20,000, higher than the $10,000 minimum common in many states✓

Wyoming's minimum property-damage liability is $20,000 — part of its 25/50/20 requirement — higher than the $10,000 minimum used in many states. Producers should still recommend higher limits because vehicle repair and replacement costs often exceed the minimum. Source: Wyoming Department of Insurance (https://doi.wyo.gov).

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

• 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 Wyoming Department of Insurance✓

Wyoming 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 current Wyoming notice periods with the Wyoming Department of Insurance.

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

• a.The Wyoming Department of Insurance, a state agency led by an appointed 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 county clerk's office where the policy is issued

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