District of Columbia Property & Casualty Insurance License Exam — All Questions
3 questions
Which agency licenses resident property and casualty insurance producers in the District of Columbia?
- a.The Department of Insurance, Securities and Banking (DISB)✓
- b.The Department of Motor Vehicles
- c.The Office of Tax and Revenue
- d.The Department of Consumer and Regulatory Affairs
The District regulates insurance and licenses producers through the Department of Insurance, Securities and Banking (DISB), led by the Commissioner. The Department of Motor Vehicles handles vehicle registration and proof of insurance but does not license producers.
A District producer offers to give a client part of her commission as an inducement to buy a homeowners policy. This is:
- a.Permitted if disclosed to the insurer
- b.Permitted for new customers only
- c.Prohibited rebating under the District'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 a prohibited unfair trade practice in the District and can bring fines and license action by DISB.
After a District personal auto or homeowners policy is in force beyond its initial underwriting period, mid-term cancellation by the insurer is generally allowed only:
- a.For specific statutory reasons such as nonpayment of premium, fraud or material misrepresentation, or a substantial increase in the hazard, with required advance written notice✓
- b.For any reason, with no notice to the insured
- c.Only during the first month after issuance
- d.Never under any circumstances
The District limits mid-term cancellation of seasoned personal-lines policies to defined grounds such as nonpayment, fraud or material misrepresentation, or a substantial increase in the hazard, and requires advance written notice. The exact notice day-counts are set by statute; verify current figures with DISB.