Indiana Property & Casualty Insurance License Exam — All Questions
3 questions
What are Indiana's minimum required auto liability limits (bodily injury per person / per accident / property damage)?
- a.$25,000 / $50,000 / $10,000
- b.$20,000 / $40,000 / $15,000
- c.$15,000 / $30,000 / $10,000
- d.$25,000 / $50,000 / $25,000✓
Indiana sets minimum liability of $25,000 for bodily injury to one person, $50,000 per accident, and $25,000 for property damage (25/50/25), per Indiana Code 9-25-4-5 (property-damage minimum raised to $25,000 for accidents on or after July 1, 2018). Higher limits are available; confirm current figures with the Indiana Department of Insurance.
How does Indiana assign responsibility for auto accident claims?
- a.A no-fault state, where each driver's PIP pays their own injuries regardless of fault.
- b.A traditional at-fault (tort) state, where the at-fault driver's liability coverage responds to the other party's claims.✓
- c.A state that requires no auto liability coverage at all.
- d.A choice state, where drivers annually elect tort or no-fault.
Indiana follows a traditional at-fault (tort) system rather than no-fault: the driver who causes a crash is liable, and that driver's liability coverage pays the other party's injury and property claims up to the 25/50/25 minimums (Indiana Code 9-25-4-5 (property-damage minimum raised to $25,000 for accidents on or after July 1, 2018)). It does not mandate personal injury protection (PIP).
Uninsured/underinsured motorist coverage on a Indiana auto policy primarily provides what?
- a.A federal reinsurance pool that reimburses all crash losses.
- b.A guarantee that premiums can never increase after a claim.
- c.Uninsured motorist coverage that protects the insured when an at-fault driver has no or too little insurance.✓
- d.Coverage that pays the at-fault driver's own liability judgments.
Uninsured/underinsured motorist (UM/UIM) coverage protects the policyholder and passengers when the responsible driver is uninsured or underinsured. Indiana regulates how UM/UIM is offered and rejected; producers should confirm the current offer-and-waiver rules with the Indiana Department of Insurance.