Louisiana Property & Casualty Insurance License Exam — All Questions
3 questions
Which agency licenses resident property and casualty insurance producers in Louisiana?
- a.Louisiana Department of Insurance✓
- b.Louisiana Office of Motor Vehicles
- c.Louisiana Office of Financial Institutions
- d.Louisiana Public Service Commission
Louisiana regulates insurance and licenses producers through the Louisiana Department of Insurance (LDI), headed by the elected Commissioner of Insurance. The Office of Motor Vehicles enforces vehicle registration and proof of insurance but does not license producers.
A Louisiana producer offers part of his commission back to a customer to close a homeowners sale. This is:
- a.Permitted if disclosed to the insurer
- b.Permitted for new customers only
- c.Prohibited rebating under Louisiana'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 Louisiana and can bring fines and license action by the Louisiana Department of Insurance.
After a Louisiana 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 24 hours after issuance
- d.Never under any circumstances
Louisiana 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 Louisiana Department of Insurance.