Kentucky Property & Casualty Insurance License Exam — All Questions
3 questions
Which agency licenses resident property and casualty insurance producers in Kentucky?
- a.Kentucky Department of Insurance✓
- b.Kentucky Department of Financial Institutions
- c.Kentucky Transportation Cabinet
- d.Kentucky Public Protection Board
Kentucky regulates insurance and licenses agents and other insurance professionals through the Kentucky Department of Insurance, confirmed on the department's own site. The Transportation Cabinet handles vehicle registration and proof of insurance but does not license producers.
A Kentucky producer offers to pay part of her commission back to a client as an inducement to buy a homeowners policy. This is:
- a.Permitted if the insurer is notified
- b.Permitted for first-time buyers
- c.Prohibited rebating under Kentucky'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 Kentucky and can lead to fines and license action by the Kentucky Department of Insurance.
After a Kentucky personal auto or homeowners policy has been 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 a substantial change in the risk, with required advance written notice✓
- b.For any reason, with no notice to the insured
- c.Only during the first week after issuance
- d.Never under any circumstances
Like most states, Kentucky limits mid-term cancellation of seasoned personal-lines policies to defined grounds such as nonpayment, fraud, or a material increase in hazard, and requires advance written notice so the insured can replace coverage. The exact notice day-counts are set by statute; verify current figures with the Kentucky Department of Insurance.