New Hampshire Property & Casualty Insurance License Exam — All Questions
3 questions
Which agency licenses resident property and casualty insurance producers in New Hampshire?
- a.New Hampshire Secretary of State
- b.New Hampshire Banking Department
- c.New Hampshire Division of Motor Vehicles
- d.New Hampshire Insurance Department✓
New Hampshire regulates insurers and licenses property and casualty producers through the New Hampshire Insurance Department, led by a Commissioner. The Division of Motor Vehicles handles registration and proof of financial responsibility but does not license producers. Confirm current contact and licensing details with the New Hampshire Insurance Department.
A New Hampshire producer offers a client part of the commission as cash to induce the purchase of a homeowners policy. Under unfair trade practices rules, this is:
- a.Prohibited rebating✓
- b.Required to be reported but otherwise lawful
- c.Allowed for new customers only
- d.Allowed if disclosed to the insurer
Rebating — giving any part of the premium or commission, or other valuable consideration, as an inducement to buy — is a prohibited unfair trade practice that can create unfair discrimination between similar insureds. It is grounds for discipline by the New Hampshire Insurance Department.
Under New Hampshire law, once a personal auto or homeowners policy has been in force beyond its initial period, mid-term cancellation by the insurer is generally allowed only:
- a.Never, because in-force policies can never be canceled
- b.For any reason with no notice
- c.Only within 24 hours of issuance
- d.For specific statutory reasons such as nonpayment of premium, fraud, or a substantial increase in risk, with required advance written notice✓
Like most states, New Hampshire restricts mid-term cancellation of seasoned personal-lines policies to defined grounds (for example nonpayment, fraud, or a material increase in the hazard) and requires advance written notice. The exact notice day-counts are set by statute; verify current figures with the New Hampshire Insurance Department.