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KY Property & Casualty practice questions

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Question 1Insurance Regulation and Licensing (national)

Under the McCarran-Ferguson Act, primary authority to regulate the business of insurance rests with which body?

  1. The federal Department of Insurance
  2. The National Association of Insurance Commissioners
  3. The Securities and Exchange Commission
  4. State insurance departments Correct answer.

Explanation

The McCarran-Ferguson Act (1945) provides that regulation of the business of insurance is primarily the responsibility of the states, and federal antitrust law applies only to the extent the states do not regulate. The NAIC drafts model laws and coordinates regulators but issues no rules of its own, and no federal insurance department exists.

Question 2Insurance Regulation and Licensing (national)

An insurer wants a licensed producer to solicit business on its behalf in a state. What must the insurer do?

  1. Appoint the producer with the state insurance department Correct answer.
  2. Require the producer to post a bond before any solicitation
  3. Obtain a certificate of authority for the producer
  4. Request that the state issue a temporary license for the producer

Explanation

Appointment is the insurer's authorization of a producer to act for it, and the insurer files notice of that appointment with the state (often electronically) so the producer's authority is a matter of record. A certificate of authority is issued to insurers, not producers, and a bond is not a substitute for appointment.

Question 3Insurance Regulation and Licensing (national)

A company that wants to begin selling insurance in a state must first obtain which of the following?

  1. A producer license
  2. An accreditation certificate issued by the National Association of Insurance Commissioners
  3. A certificate of authority from the state insurance department Correct answer.
  4. A federal insurance charter

Explanation

An insurer must be licensed, or admitted, by each state in which it transacts business, and that license is the certificate of authority. NAIC accreditation applies to state regulatory departments, and there is no federal charter for insurers.

Question 4Insurance Regulation and Licensing (national)

Premiums that a producer collects from policyholders are best described as which of the following?

  1. A personal loan from the insured to the producer
  2. Earned commission payable to the producer as soon as the bill is mailed
  3. Trust funds held in a fiduciary capacity Correct answer.
  4. The insurer's property from the moment the producer collects it

Explanation

A producer receives premium as a fiduciary for the insurer and must account for and remit those funds as required by law and the agency agreement. Commingling premium with personal or business funds and failing to remit are common grounds for license discipline.

Question 5Insurance Regulation and Licensing (national)

Offering part of a producer's commission to a buyer to persuade the buyer to purchase insurance is best characterized as which of the following?

  1. A permissible volume discount if disclosed to the buyer
  2. Legal only on commercial property policies
  3. Allowable when the buyer is a business entity
  4. Rebating, an unfair trade practice Correct answer.

Explanation

Rebating gives an inducement not specified in the policy and is prohibited as an unfair trade practice in virtually every state. Disclosing the inducement or dealing with a commercial buyer does not make the practice lawful unless a narrow statutory exception applies.

Question 6Insurance Regulation and Licensing (national)

Renewal of a producer license generally requires the producer to do which of the following?

  1. Post a new surety bond with each renewal
  2. Retake the state licensing examination every two years
  3. Obtain a new appointment from every insurer each year
  4. Complete a specified number of continuing education credit hours Correct answer.

Explanation

States condition license renewal on completing continuing education, commonly with a required ethics component, to keep producers current on law and product changes. Re-examination is normally required only after a lapse or disciplinary action, and appointments continue until terminated.

Question 7Insurance Regulation and Licensing (national)

A producer licensed and in good standing in State A applies for a nonresident license in State B. Under the reciprocity provisions adopted by most states, the producer will generally be able to do which of the following?

  1. Be required to maintain a business office in State B
  2. Be required to retake the full prelicensing course in State B
  3. Have to surrender the State A license first
  4. Obtain a nonresident license without re-examination Correct answer.

Explanation

Nonresident reciprocity, reinforced by the federal NARAB II framework, lets a producer in good standing obtain a nonresident license without retaking the licensing examination. The state may still require an application and fee, but it may not impose an office requirement or force surrender of the home state license.

Question 8Insurance Regulation and Licensing (national)

An individual sells insurance policies for an admitted insurer but holds no producer license. This activity is which of the following?

  1. Permitted only for surplus lines placements
  2. Permitted if no commission is received
  3. Permitted if the insurer holds a certificate of authority
  4. Unlawful and subject to civil or criminal penalties Correct answer.

Explanation

Transacting insurance without a license is prohibited, and states may impose civil penalties and, in serious cases, criminal sanctions. The admitted status of the insurer or a decision to forgo compensation does not make unlicensed selling lawful.

Question 9Insurance Regulation and Licensing (national)

A producer may lawfully share a commission on a policy with which of the following?

  1. A licensed producer who helped make the sale Correct answer.
  2. An unlicensed office assistant who explained policy terms to the client
  3. The insured as a thank-you for the referral
  4. An unlicensed telemarketer paid per lead

Explanation

Commission splitting is limited to persons who are properly licensed to sell insurance, because the payment compensates solicitation and negotiation of coverage. Paying unlicensed persons for activities that require a license, including discussing policy terms or generating leads for compensation, violates licensing law.

Question 10Insurance Regulation and Licensing (national)

Under a file-and-use rating law, an insurer must do which of the following?

  1. Obtain the insurance department's approval before using the rate
  2. Refile every rate change with the NAIC
  3. File the rate and then use it without prior approval Correct answer.
  4. Use only rates promulgated by a state rating bureau

Explanation

File-and-use systems let an insurer place a rate on file and put it into effect immediately or after a short waiting period, with the department reviewing it later. Prior approval, by contrast, requires the regulator's sign-off before the rate may be used.

Question 11Insurance Regulation and Licensing (national)

An advertising brochure states that an insurer's policy is 'approved by the state insurance department' when the department has not endorsed the policy. This statement is which of the following?

  1. A prohibited misrepresentation Correct answer.
  2. Acceptable if the policy form was filed with the state
  3. Acceptable in a newspaper but not in a brochure
  4. Allowable if a disclaimer appears in small print

Explanation

Misrepresenting the terms or regulatory status of a policy is an unfair trade practice, because it misleads buyers about the coverage and about government endorsement. Filing a form with the department is not approval of the product, and a fine-print disclaimer does not cure a deceptive headline claim.

Question 12Insurance Regulation and Licensing (national)

The purpose of a state guaranty association is to do which of the following?

  1. Regulate the rates charged by admitted insurers
  2. Pay covered claims when an admitted insurer fails Correct answer.
  3. Provide insurance to high-risk drivers
  4. Guarantee that insurers writing business in the state earn a profit

Explanation

Guaranty associations pay covered claims of policyholders of insolvent admitted insurers, up to statutory limits, funded by assessments on member insurers. They do not set rates, write coverage, or protect insurer profits.

Question 13Insurance Regulation and Licensing (national)

A state's automobile assigned risk plan exists to do which of the following?

  1. Set maximum rates for all admitted insurers
  2. Replace the state guaranty association when an insurer becomes insolvent
  3. License producers who sell only high-risk policies
  4. Provide coverage for applicants rejected by the voluntary market Correct answer.

Explanation

Residual market mechanisms such as assigned risk plans and FAIR plans make coverage available to applicants who cannot obtain it in the voluntary market. They operate alongside, not in place of, guaranty associations and ordinary rate regulation.

Question 14Insurance Regulation and Licensing (national)

A surplus lines broker may place coverage with a nonadmitted insurer only when which of the following conditions is met?

  1. Authorized insurers have declined the risk after a diligent search Correct answer.
  2. The premium exceeds a statutory minimum
  3. The insured signs a waiver of all coverage disputes
  4. The nonadmitted insurer holds NAIC accreditation

Explanation

Surplus lines placement requires a diligent effort showing that the coverage is not available from admitted insurers, and the nonadmitted insurer must meet state eligibility standards. The broker must also hold a surplus lines license and make required disclosures, since guaranty association protection generally does not apply.

Question 15Insurance Regulation and Licensing (national)

A risk retention group formed under the federal Liability Risk Retention Act does which of the following?

  1. May write first-party property coverage for its members
  2. Is exempt from state unfair trade practice laws
  3. Is regulated as a domestic insurer in every state where it has members
  4. May operate in other states by registering there Correct answer.

Explanation

A risk retention group is chartered in one state and then may do business nationwide by registering with each additional state rather than obtaining a certificate of authority there. Its authority is limited to liability coverage, and it remains subject to state market conduct and trade practice rules.

Question 16Insurance Regulation and Licensing (national)

The primary purpose of a market conduct examination is to do which of the following?

  1. Determine whether the insurer meets minimum capital requirements
  2. Check compliance with sales and claims practice laws Correct answer.
  3. Audit the insurer's loss reserves for adequacy
  4. Review rate filings for actuarial soundness

Explanation

Market conduct examinations focus on how an insurer treats policyholders, reviewing marketing, underwriting, rating, and claims handling for compliance with trade practice statutes and regulations. Reserve adequacy and capital adequacy are subjects of financial examinations.

Question 17Insurance Regulation and Licensing (national)

An insurer routinely fails to acknowledge claim communications and delays responding to policyholders for weeks. This conduct is best described as which of the following?

  1. Permitted for claims under $1,000
  2. Acceptable if the claim is ultimately paid
  3. An unfair claim settlement practice Correct answer.
  4. A matter of contract law only

Explanation

Unfair claim settlement practices acts list specific conduct, such as failing to acknowledge and act promptly on claim communications and refusing to pay without a reasonable investigation, as violations. Eventual payment does not excuse the delay, and no small-claim exception exists.

Question 18Insurance Regulation and Licensing (national)

Most states require a producer to retain records of insurance transactions for which of the following periods?

  1. Only until the commission is paid
  2. As long as the producer remains licensed, then destroy them
  3. A specified period, commonly at least three to five years Correct answer.
  4. 30 days after the policy is issued

Explanation

Recordkeeping rules require producers to keep books and records of transactions for a set retention period, typically at least three to five years, so examiners can verify compliance. The period runs from the transaction date, not from payment of commission or expiration of the license.

Question 19Insurance Regulation and Licensing (national)

A producer obtains a license mainly to write coverage on her own property and on the property of her immediate family. This practice is known as which of the following?

  1. Twisting
  2. A permissible niche marketing practice
  3. Controlled business, which is restricted by law Correct answer.
  4. Unfair discrimination among similar risks

Explanation

Controlled business statutes limit the proportion of an agency's book that comes from the licensee's own interests and those of close relatives or employers, ensuring the license serves the public rather than only the licensee. Twisting, by contrast, is inducing a policyholder to lapse coverage through misrepresentation.

Question 20Insurance Regulation and Licensing (national)

Under the Gramm-Leach-Bliley Act, an insurer must generally do which of the following with respect to customer information?

  1. Obtain NAIC approval of its privacy policy
  2. Limit the use of customer information to claims handling only
  3. Give customers a privacy notice and opt-out rights Correct answer.
  4. Report every customer's credit score to the state

Explanation

GLBA requires financial institutions, including insurers, to provide privacy notices describing information-sharing practices and to give consumers the right to opt out of certain sharing with nonaffiliated third parties. Limited exceptions exist for servicing and claims-related activities.

Question 21Insurance Regulation and Licensing (national)

A producer reports a suspected fraudulent claim in good faith to the state insurance fraud bureau. What is the producer's legal position?

  1. Liable for defamation if the suspicion proves incorrect
  2. Required to notify the suspect before reporting
  3. Immune from civil liability for the report Correct answer.
  4. Required to post a bond covering the suspect's losses

Explanation

Insurance fraud reporting statutes generally grant qualified immunity for good-faith reports so that insurers and producers are not deterred from reporting suspected fraud. Reporting is typically confidential, and no advance notice to the suspect is required.

Question 22Insurance Regulation and Licensing (national)

Errors and omissions coverage protects an insurance producer against which of the following?

  1. Losses from the insolvency of an insurer the producer represents
  2. Negligent acts or omissions in professional services Correct answer.
  3. The cost of defending criminal charges
  4. Punitive fines imposed for intentional violations

Explanation

Errors and omissions insurance is professional liability coverage for claims that the producer negligently failed to place coverage, misstated terms, or otherwise erred in providing services. Intentional wrongdoing, criminal defense costs, and insurer insolvency are ordinarily excluded.

Question 23Insurance Regulation and Licensing (national)

Before revoking a producer's license, the state insurance department generally must do which of the following?

  1. Publish the proposed action in the state's official newspaper
  2. Obtain the written consent of every insurer that appointed the licensee
  3. Give notice of the charges and a hearing opportunity Correct answer.
  4. Obtain a criminal conviction for insurance fraud before acting

Explanation

License revocation is an administrative action that must satisfy due process, which means the licensee receives notice of the charges and a meaningful opportunity to be heard, often before an administrative law judge with appeal rights. A criminal conviction is not a prerequisite to discipline.

Question 24Insurance Regulation and Licensing (national)

A temporary producer license is typically issued to which of the following?

  1. A personal representative continuing a deceased producer's business Correct answer.
  2. A producer whose license was revoked for fraud
  3. Any applicant who fails the licensing exam
  4. An insurer that wants to write business in a new state

Explanation

Temporary licenses are short-term, limited-purpose authorizations, commonly granted to the estate or personal representative of a deceased or incapacitated producer so the business can be wound down or sold. They are not available to applicants who failed the exam or to those whose licenses were revoked.

Question 25General Insurance Concepts

Which statement best describes what insurance does for an insured?

  1. It shifts the financial burden of an uncertain loss to an insurer Correct answer.
  2. It guarantees a profit on the insured property
  3. It eliminates the possibility that a loss will occur
  4. It removes the insured's legal liability for negligent acts

Explanation

Insurance is a risk-transfer device: the insured pays a premium and the insurer agrees to bear the financial consequences of covered losses. The peril itself is not eliminated, and the transfer concerns money, not the physical event.

Question 26General Insurance Concepts

Which situation creates an insurable interest in a building?

  1. Holding a mortgage secured by the building Correct answer.
  2. Being a neighbor who would like the building kept in good repair
  3. Hoping to buy the building at some future date
  4. Admiring the building's architecture as a volunteer

Explanation

Insurable interest exists when a person would suffer a genuine financial loss from damage to or destruction of the property. A mortgagee has a legal interest in the property that secures the debt, so it may insure that interest.

Question 27General Insurance Concepts

Which type of risk is insurance designed to handle?

  1. Risks that are certain to occur at a known time
  2. Speculative risk, such as investing in the stock market
  3. Risks that always result in a gain
  4. Pure risk, which involves only loss or no loss Correct answer.

Explanation

Insurers insure pure risk, where the only possible outcomes are loss or no loss, because such exposures can be pooled and predicted. Speculative risk involves the chance of gain as well as loss and is therefore not insurable.

Question 28General Insurance Concepts

The principle of indemnity means that a property claim payment should do what?

  1. Restore the insured to the pre-loss condition Correct answer.
  2. Provide a profit so the insured can upgrade the property
  3. Pay the policy limit even when the loss is smaller
  4. Cover only losses that result from negligence

Explanation

Indemnity means the insured is made whole financially, no better and no worse off than before the loss. Payment is measured by the actual amount of damage, subject to policy limits.

Question 29General Insurance Concepts

Which statement correctly distinguishes a peril from a hazard?

  1. Perils apply only to property, while hazards apply only to liability
  2. Perils and hazards both refer only to natural catastrophes
  3. A peril is the cause of loss; a hazard raises the chance of loss Correct answer.
  4. A hazard is the cause of loss; a peril raises the chance of loss

Explanation

A peril is the actual event that causes damage, such as fire, wind, or theft. A hazard is a condition that increases the likelihood or severity of that loss, such as storing gasoline near a furnace.

Question 30General Insurance Concepts

An insurance policy is a contract of adhesion because:

  1. Both parties negotiate each clause before the policy is issued
  2. The insurer drafts the policy and the insured accepts or rejects it Correct answer.
  3. The insured may change any wording after a loss occurs
  4. Courts must strictly enforce every term against the insured

Explanation

A contract of adhesion is prepared by one party and offered on a take-it-or-leave-it basis, leaving the other party without real bargaining power. For that reason, ambiguous policy language is generally construed in favor of the insured.

Question 31General Insurance Concepts

Which is an example of a moral hazard?

  1. Intentionally setting fire to an insured building for the claim Correct answer.
  2. Installing a sprinkler system after a fire loss
  3. Leaving a door unlocked because the building is insured
  4. Parking a car in a garage to reduce theft exposure

Explanation

Moral hazard involves dishonesty or a deliberate act by the insured that creates or exaggerates a loss. Carelessness or indifference toward loss, such as leaving a door unlocked, is morale hazard rather than moral hazard.

Question 32General Insurance Concepts

The law of large numbers allows an insurer to do what?

  1. Raise premiums without any supporting data
  2. Predict losses more accurately as the number of similar units grows Correct answer.
  3. Ignore the past loss experience of a class of business
  4. Guarantee that no single insured will ever have a loss

Explanation

The law of large numbers holds that actual losses approach expected losses as the number of similar exposure units increases. Greater predictability allows the insurer to set rates and reserves with more confidence.

Question 33General Insurance Concepts

Adverse selection is best described as which situation?

  1. A large group of average risks applying at the same time
  2. Buyers with the highest loss potential seek coverage most eagerly Correct answer.
  3. The tendency of rates to fall when losses are low
  4. Insurers refusing to write any new business in a state

Explanation

Adverse selection occurs when applicants who expect losses are the most likely to buy or keep coverage, leaving the insurer with a poorer-than-average pool. Insurers manage it through underwriting, exclusions, and properly rated premiums.

Question 34General Insurance Concepts

After paying a covered loss caused by a negligent third party, an insurer may pursue subrogation in order to:

  1. Increase the insured's limit for the next policy term
  2. Collect a second premium from the insured for the loss
  3. Recover the claim payment from the responsible party Correct answer.
  4. Cancel the policy without notice to the insured

Explanation

Subrogation lets the insurer stand in the insured's shoes and recover from the party that caused the loss after paying the claim. This holds the responsible party accountable and prevents the insured from collecting twice.

Question 35General Insurance Concepts

A property policy contains an 80% coinsurance clause. This means:

  1. The insured must pay 80% of every loss out of pocket
  2. The limit must equal at least 80% of the property's value Correct answer.
  3. The insurer pays only 80% of any covered loss
  4. The policy automatically increases its limit by 80% each year

Explanation

Under a coinsurance clause the insured must carry a limit of at least the stated percentage of the property's value at the time of loss. If the limit falls short of that target, any claim is reduced in proportion to the shortfall.

Question 36General Insurance Concepts

What is the main effect of a deductible in a property policy?

  1. The insured absorbs small losses, lowering the premium Correct answer.
  2. It increases the premium because the insured shares losses
  3. It transfers the entire loss to the insurance company
  4. It applies only to liability claims, never to property claims

Explanation

A deductible is the amount of each loss the insured absorbs before the insurer pays anything. Because the insured retains the small losses, the premium is lower and minor claims are discouraged.

Question 37General Insurance Concepts

For a misrepresentation on an application to allow the insurer to void the policy, the statement must be:

  1. About a fact that the agent, not the applicant, recorded
  2. Discovered by the insurer before the policy is delivered
  3. Written in the applicant's own handwriting
  4. Material to the insurer's decision to accept the risk Correct answer.

Explanation

A misrepresentation must be material, meaning it affected the insurer's decision to issue the policy or the rate it charged. Innocent or immaterial inaccuracies generally do not support rescission of coverage.

Question 38General Insurance Concepts

A binder issued by an agent provides what?

  1. Proof that the insurer has already inspected the property
  2. A permanent policy that cannot be cancelled
  3. A guarantee that the quoted premium will never change
  4. Temporary evidence of coverage until the policy is issued Correct answer.

Explanation

A binder is a temporary agreement, oral or written, that gives immediate coverage while the policy is being prepared. It carries the terms of the policy that will eventually be issued.

Question 39General Insurance Concepts

An adjuster tells an insured in writing that a late-reported claim will be accepted, and the insurer later tries to deny it for late notice. Which doctrine most likely blocks the denial?

  1. Estoppel Correct answer.
  2. Coinsurance
  3. Subrogation
  4. Abandonment

Explanation

Waiver is the voluntary surrender of a known right, and estoppel prevents the insurer from later asserting a right it has given up when the insured relied on that conduct. Having accepted the late claim in writing, the insurer cannot reverse course to the insured's detriment.

Question 40General Insurance Concepts

A windstorm blows down a wall, and the falling wall crushes a covered fence. In claims handling the windstorm is treated as what?

  1. A concurrent cause that must be shared equally
  2. The proximate cause of the entire loss Correct answer.
  3. A remote cause, so no coverage applies
  4. An intervening cause created by the insured

Explanation

Proximate cause is the dominant, effective cause that sets in motion an unbroken chain of events leading to the loss. When a covered peril is the proximate cause, the resulting damage is generally covered even if a secondary force delivered the final blow.

Question 41General Insurance Concepts

Which statement about reinsurance is correct?

  1. It removes the insurer's duty to maintain loss reserves
  2. It replaces the policy that the insured already holds
  3. It is available only to individuals with large homes
  4. It shifts part of the insurer's risk to another insurer Correct answer.

Explanation

Reinsurance is insurance for insurers: the ceding company transfers a portion of its risk to a reinsurer. The original insured has no contract with the reinsurer, and the ceding insurer remains responsible for the full claim.

Question 42General Insurance Concepts

Under a claims-made liability policy, coverage is triggered by:

  1. The date the claim is first made against the insured Correct answer.
  2. The date the injury or damage actually happened
  3. The date the policy's first premium was paid
  4. The date the insurer finishes investigating the claim

Explanation

A claims-made policy responds to claims first made during the policy period, regardless of when the injury occurred, and it usually includes a retroactive date. An occurrence policy instead responds to injury or damage that takes place during the policy period.

Question 43General Insurance Concepts

Which statement is true of a non-admitted insurer?

  1. It must file all rates with the state before use
  2. It has no certificate of authority in the state Correct answer.
  3. It is automatically covered by the state guaranty fund
  4. It may write any policy without using a surplus lines broker

Explanation

A non-admitted insurer has not received a certificate of authority from the state insurance department. It may write only through surplus lines channels, and its policyholders generally lack guaranty fund protection.

Question 44General Insurance Concepts

An insurer reports a loss ratio of 70% and an expense ratio of 35%. What does its combined ratio show?

  1. 105%, which indicates an underwriting loss Correct answer.
  2. 35%, which indicates an underwriting profit
  3. 95%, which indicates a small underwriting profit
  4. 70%, which indicates a strong underwriting profit

Explanation

The combined ratio is the loss ratio plus the expense ratio, so 70% plus 35% equals 105%. A combined ratio above 100% means claims and expenses exceed premium income, producing an underwriting loss.

Question 45Kentucky Insurance Laws, Rules, and Regulations

Who appoints the Commissioner of the Kentucky Department of Insurance?

  1. The board of directors of the NAIC
  2. The Kentucky Senate by majority vote
  3. The voters of Kentucky in a general election
  4. The Governor Correct answer.

Explanation

The Commissioner of Insurance heads the Kentucky Department of Insurance and is appointed by the Governor to a four-year term. The office sits within the executive branch and is not filled by popular election.

Question 46Kentucky Insurance Laws, Rules, and Regulations

A Kentucky producer license is issued for a term of:

  1. Two years Correct answer.
  2. Four years
  3. Three years
  4. One year

Explanation

Kentucky licenses producers on a biennial cycle, and the license expires on the last day of the licensee's birth month. Renewal depends on completing continuing education and paying the renewal fee.

Question 47Kentucky Insurance Laws, Rules, and Regulations

How many continuing education hours must a Kentucky producer complete every two years?

  1. 18 hours
  2. 36 hours
  3. 12 hours
  4. 24 hours Correct answer.

Explanation

Kentucky requires licensed producers to complete 24 hours of approved continuing education during each two-year license period. The hours must come from courses approved by the Department of Insurance.

Question 48Kentucky Insurance Laws, Rules, and Regulations

Within Kentucky's biennial continuing education requirement, how many hours must address ethics?

  1. 6 hours
  2. 8 hours
  3. 12 hours
  4. 3 hours Correct answer.

Explanation

At least 3 of the 24 biennial continuing education hours must be in ethics. Those ethics hours count toward the 24-hour total rather than being added on top of it.

Question 49Kentucky Insurance Laws, Rules, and Regulations

Before sitting for a Kentucky producer examination in a major line, an applicant must complete approved prelicensing education of:

  1. 10 hours
  2. 30 hours
  3. 40 hours
  4. 20 hours Correct answer.

Explanation

Kentucky requires 20 hours of approved prelicensing education for each major line, such as life, health, property, casualty, or personal lines, before the licensing exam. The course must be taken through a Department-approved provider.

Question 50Kentucky Insurance Laws, Rules, and Regulations

Who is responsible for filing notice of a producer's appointment with the Commissioner?

  1. The Kentucky guaranty association
  2. The producer's sponsoring agency
  3. The producer
  4. The appointing insurer Correct answer.

Explanation

The appointing insurer files the appointment with the Commissioner, and the filing must be made within 30 days of the appointment. A producer cannot transact business for an insurer that has not appointed the producer.