Connecticut Property & Casualty Insurance License Exam — All Questions
3 questions
Which agency licenses resident property and casualty insurance producers in Connecticut?
- a.Connecticut Insurance Department✓
- b.Connecticut Department of Banking
- c.Connecticut Department of Motor Vehicles
- d.Connecticut Financial Services Commission
Connecticut regulates insurance and licenses P&C producers through the Connecticut Insurance Department (CID), led by a Commissioner appointed by the Governor. The DMV enforces vehicle registration and proof of insurance but does not license producers.
A Connecticut producer offers a prospect part of his own commission as cash to induce the purchase of a homeowners policy. This is:
- a.Permitted if disclosed to the insurer
- b.Permitted for new customers only
- c.Prohibited rebating under Connecticut's unfair trade practices law✓
- d.Required to be reported but otherwise lawful
Rebating — giving any part of the premium or commission, or other valuable consideration, as an inducement to buy — is prohibited in Connecticut. It can cause unfair discrimination among similarly situated insureds and is grounds for discipline by the CID.
Under Connecticut law, once a personal auto or homeowners policy has been in force beyond its initial period, mid-term cancellation by the insurer is generally allowed only:
- a.For specific reasons such as nonpayment of premium, fraud, or a substantial increase in risk, with required advance written notice✓
- b.For any reason the insurer chooses, with no notice
- c.Only in the first 24 hours after issuance
- d.Never, because policies can never be cancelled
Connecticut restricts mid-term cancellation of seasoned personal-lines policies to defined grounds (for example nonpayment, fraud, or a material increase in the hazard) and requires advance written notice so the insured can obtain replacement coverage. Specific notice day-counts are set by statute; verify current figures with the CID.