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MI Property & Casualty Exam - Michigan-Specific Regulations and Laws Questions and Answers
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MI Property & Casualty Exam - Michigan-Specific Regulations and Laws
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MI Property & Casualty Exam - Michigan-Specific Regulations and Laws
What organization was established to protect insureds against financial loss because of
insurance company insolvency? - Answer -The Michigan Property and Casualty
Guaranty Association (MPCGA)
Which insurers authorized to sell insurance are required to be members of the
association? - Answer -All insurers except life and health.
True/False: Claims covered by the MPCGA must be from insurance policies issued or
payable to Michigan residents. - Answer -True
The MPCGA will cover a claim if it is ____ by an insolvent insurer. - Answer -Unpaid
True/False: The MPCGA will cover a claim presented after the fixed filing date. - Answer
-False; only claims presented before the fixed filing date are covered.
For a claim to be covered by the MPCGA, it must have existed before or have been
incurred within ___ days of the appointment of the receiver. - Answer -30
True/False: Health and Life Insurance claims are not covered by the MPCGA. - Answer
-True
True/False: Claims from policies issued after the last date the insurer was a member of
the MPCGA are covered. - Answer -False; only claims filed while the insurance
company is a member (before the last day it was a member) are covered.
The MPCGA will not cover refunds of unearned premium less than __ or greater than
__. - Answer -$50; $500
Each member of the MPCGA pays an assessment into its fund equal to ___ of the
insurers direct written premium. - Answer -1%
Each member of the MPCGA is given __ days notice of how much and when its dues
are to be paid. - Answer -30
, In Michigan, the Standard Fire Policy (SFP) insures against loss from the perils of ____,
____, and ____. - Answer -Fire; Lightning; Removal
Cancellation of a policy by an insured is on a ___ ___ basis. - Answer -Pro Rata.
All SFPs must include coverage for the ___ ___ ___ of property at the time of loss. -
Answer -Actual Cash Value
How many days must a SFP cover for removal (moving property to another location to
protect it from further damage)? - Answer -5
True/False: Language stating that the policy may be void upon basis of
misprepresentation, fraud or concealment is not required in SFPs. - Answer -False; it
must be included in all policies.
True/False: SFPs must contain a list of the property and perils covered. - Answer -
False; SFPs MUST contain a list of property and perils NOT covered. This does not
mean it cannot have a list of what IS covered.
When may SFPs be cancelled by insureds? - Answer -Anytime
When may insurers cancel SFPs? - Answer -Anytime with at least 10 days written
notice.
If the insured and insurer fail to agree on the ACV or amount of loss, then either party
may request that ACV be set by ____. - Answer -Appraisal
What does the acronym TRIA stand for? - Answer -Terrorism Risk Insurance Act
The purpose of TRIA was to create a ____ ___ ____. - Answer -Temporary Insurance
Program.
True/False: The Federal Terrorism Insurance Program covers the risk of loss of a future
terrorist attack. - Answer -False; FTIP shares the risk of loss with the insurance industry
Under TRIA, an act of terrorism must be cerified by which three government officials? -
Answer -The Secretary of Treasury, The Secretary of State, and the Attorney General of
the United States.
To be considered an "act of terrorism" the act must be ____ or ____ to human life. -
Answer -Violent; Dangerous
A terrorist act must occur within the ____ ____. - Answer -United States
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