New Hampshire Property & Casualty Insurance License Exam — All Questions

New Hampshire is unusual among states in how it treats auto liability insurance. Which statement is the safest guidance for a producer?

• a.New Hampshire has the highest mandatory limits in the country
• b.New Hampshire prohibits auto liability insurance
• c.New Hampshire does not universally require drivers to carry auto liability insurance, but drivers must be able to meet financial-responsibility obligations, and many still need coverage — verify current rules with the NH Insurance Department and DMV✓
• d.New Hampshire is a pure no-fault state

New Hampshire is commonly cited as a state that does not universally mandate auto liability insurance; instead, motorists must be able to satisfy financial-responsibility requirements if they cause an accident, and coverage is effectively required in many situations (for example after certain violations or as a lender condition). Because the details and any thresholds change, verify the current rules with the New Hampshire Insurance Department and Division of Motor Vehicles rather than assuming.

When an auto policy IS issued in New Hampshire, what is the best practice for confirming the minimum liability limits that apply?

• a.Assume they equal another state's minimums
• b.Assume no minimums apply because insurance is optional
• c.Use whatever number the client remembers
• d.Confirm the current statutory financial-responsibility limits with the New Hampshire Insurance Department / DMV, because they are set by law and can change✓

Even though New Hampshire does not universally compel drivers to buy coverage, when a policy is written or when a driver must show financial responsibility, statutory minimum limits apply. Those split limits are set by law and periodically revised, so verify the current per-person, per-accident, and property-damage figures with official New Hampshire sources rather than quoting a remembered number.

Uninsured/underinsured motorist (UM/UIM) coverage on an auto policy is designed to:

• a.Pay the other driver's damages when your client is at fault
• b.Pay your client's own bodily-injury damages when an at-fault driver has no insurance or not enough✓
• c.Replace collision coverage on the client's own vehicle
• d.Cover only damage to commercial buildings

UM/UIM protects the policyholder and covered occupants, paying their injury damages when the at-fault driver is uninsured or underinsured. Whether New Hampshire requires UM/UIM to be included or offered on policies that are written is set by statute — confirm the current rule with the New Hampshire Insurance Department.