Massachusetts Property & Casualty Insurance License Exam — All Questions
3 questions
Which agency regulates insurers and licenses resident property and casualty producers in Massachusetts?
- a.Massachusetts Division of Insurance✓
- b.Massachusetts Registry of Motor Vehicles
- c.Massachusetts Department of Revenue
- d.Massachusetts Securities Division
Massachusetts regulates insurance and licenses producers through the Division of Insurance, within the Office of Consumer Affairs and Business Regulation. The Registry of Motor Vehicles enforces registration and proof of insurance but does not license producers.
A Massachusetts producer offers to rebate part of his commission to a client to induce a homeowners purchase. This is:
- a.Permitted if the insurer is notified
- b.Permitted for first-time buyers
- c.Prohibited rebating under Massachusetts'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 Massachusetts and can bring fines and license action by the Division of Insurance.
After a Massachusetts 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 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
Massachusetts 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 Massachusetts Division of Insurance.