KY Laws and Regulations Pertaining to Property and Casualty Insurance

Question 1

Under KY law, an insurer formed under the laws of Michigan is consider to be

Answer 1

a foreign insurner

Question 2

An insurance producer violated the state insurance code causing multiple insureds to lose $25,000. If required by a final order issued by the commissioner, the producer may be required to pay

Answer 2

restitution

Question 3

Who is the Commissioner of insurance appointed by

Answer 3

the Governor with the consent of the Senate

Question 4

An applicant for a resident agent license must be at least

Answer 4

18 years old

Question 5

An applicant for a license as an insurance consultant must be at least

Answer 5

18 years old

Question 6

Insurance written on an agent’s own life, child’s life, or partner’s life is considered to be

Answer 6

controlled business

Question 7

An agent who allows his license to lapse must reinstate the license within

Answer 7

12 months from the due date of the renewal fee

Question 8

An agent must notify the Commissioner of a change in the agent’s legal name or address within

Answer 8

30 days of the change

Question 9

A producer sending an unfairly disparaging email regarding a competitor’s policy may be guilt of

Answer 9

unlawful advertising

Question 10

Resident agents must keep records of all business transactions under their licenses for at least

Answer 10

5 years

Question 11

Individual producer licensees whose birth dates are in even-numbered years must submit the license renewal request

Answer 11

by the last day of the producer’s birth month in even-numbered years

Question 12

A notification filed with the insurance department that an insurer has established an agency relationship with a producer is

Answer 12

an appointment

Question 13

If an applicant provides misleading information in the application for a license the Commissioner may

Answer 13

Refuse to issue the license; suspend the license if it has already been issued; impose a civil penalty

Question 14

If a person’s license has been revoked twice, when may the person be issued a new license?

Answer 14

NEVER

Question 15

Surplus lines insurance may be written

Answer 15

only when the desired coverage CANNOT be obtained from authorized insurers

Question 16

To be licensed as a surplus lines broker, an applicant must file a bond in the amount of

Answer 16

$50,000

Question 17

Intentionally making false statements on an insurance application is an example of

Answer 17

insurance fraud

Question 18

Premiums collected by an agent must be held in a

Answer 18

fiduciary capacity

Question 19

The maximum duration for a binder, unless extended by the Commissioner, is

Answer 19

90 days

Question 20

An insurer must acknowledge receipt of a notice of claim within

Answer 20

15 days

Question 21

What is the youngest age at which a person can purchase an insurance policy on his own property interests

Answer 21

15 years

Question 22

An insurer must generally offer any payment due on a claim within how many days after receiving proof of loss

Answer 22

30 days

Question 23

An insurer that cancels a property or casualty insurance policy for nonpayment of premiums must provide notice to the insured at least how many days before the effective date of the cancellation?

Answer 23

14 days

Question 24

A licensee must report to the Commissioner any administrative action taken against the licensee within how many days?

Answer 24

30 days

Question 25

How long must insurers maintain advertisements in their files

Answer 25

3 years

Question 26

Making a false statement about the financial condition of an insurer is know as

Answer 26

defamation

Question 27

All insurance applications and claim forms must contain

Answer 27

a fraud warning

Question 28

A person who commits insurance fraud is guilty of misdemeanor if the claim, benefit, or money involved in the illegal activity is

Answer 28

$500 or less

Question 29

Insurers, agents and adjusters may

Answer 29

NOT require a policyholder to use a particular company for auto glass repair

Question 30

The maximum liability of the Kentucky Insurance Guaranty Association on a covered claim for the return of unearned premium on any one policy is

Answer 30

$10,000 per policy

Question 31

The organization responsible for covering claims of insolvent insurers is

Answer 31

Kentucky Insurance Guaranty Association

Question 32

Department of insurance inquiries concerning a claim must be responded to within how many days

Answer 32

15 days

Question 33

An insurer must reply to a claimant inquiries within how many days

Answer 33

15 days

Question 34

Lenders who require debtors to purchase insurance must

Answer 34

allow the debtor to reasonably choose their own agent or insurance

Question 35

The acronym “FAIR” stands for

Answer 35

Fair Access to Insurance Requirements

Question 36

Mine Subsidence

Answer 36

Mine subsidence coverage must be provided on all structures located in Kentucky unless coverage is waived in writing by the insured. The maximum deductible for coverage is $500. The total value reinsured may not exceed $300,000 per structure.

Question 37

All property insurers doing business in Kentucky must provide a premium credit or discount provision for buildings that have

Answer 37

automatic sprinkler systems