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