North Dakota Property & Casualty Insurance License Exam — All Questions
3 questions
Which official regulates insurance and licenses resident property and casualty producers in North Dakota?
- a.The North Dakota Secretary of State
- b.The North Dakota Department of Transportation
- c.The North Dakota Insurance Commissioner (Insurance Department)✓
- d.The North Dakota Public Service Commission
North Dakota regulates insurance through the North Dakota Insurance Department, led by the elected Insurance Commissioner. The department licenses producers, reviews forms and rates, and enforces the insurance code. On the exam, remember that the Insurance Commissioner, not the Secretary of State or DOT, licenses property and casualty producers.
A North Dakota producer offers to rebate part of the commission to a client as an inducement to buy a policy. Under North Dakota law this is:
- a.Permitted if the insurer approves
- b.Permitted for commercial clients only
- c.Prohibited rebating✓
- d.Required to be reported but otherwise lawful
Giving any part of the premium or commission, or other valuable consideration not stated in the policy, as an inducement to buy is prohibited rebating under North Dakota's unfair trade practices law and can bring fines and license action by the North Dakota Insurance Commissioner.
After a North Dakota personal auto or homeowners policy is past its initial underwriting period, an insurer's mid-term cancellation is generally allowed only:
- a.For specific statutory grounds such as nonpayment of premium or fraud, with required advance written notice✓
- b.For any reason, with no notice
- c.Only during the first 24 hours of the policy
- d.Never, once the policy is issued
North Dakota limits mid-term cancellation of seasoned personal-lines policies to defined grounds such as nonpayment or fraud and requires advance written notice so the insured can replace coverage. The exact notice day-counts are set by statute and can change; verify current figures with the North Dakota Insurance Department.