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  1. 1When must an insured have an insurable interest for a Maine property-insurance contract to be enforceable?

    1. A. Only when applying
    2. B. Only when paying the first premium
    3. C. At the time of the loss
    4. D. Only after the claim is paid

    Answer: C

    Explanation: Section 2406 states that a property-insurance contract is enforceable only for the benefit of persons having an insurable interest at the time of the loss. Controlling text: "at the time of the loss".

    Reference: Title 24 a — 24-A M.R.S. §2406(1)

  2. 2Who serves as the head of the Maine Bureau of Insurance?

    1. A. The Superintendent of Insurance
    2. B. The Attorney General
    3. C. The State Treasurer
    4. D. The Secretary of State

    Answer: A

    Explanation: Maine law states: The head of the bureau is the Superintendent of Insurance. Therefore, the Superintendent of Insurance heads the bureau. Controlling text: "The Superintendent of Insurance is the head of the Bureau of Insurance.".

    Reference: Title 24 a — 24-A M.R.S. §201

  3. 3For Maine's unfair claims-settlement-practices statute, the term insurer includes which claims personnel?

    1. A. Claims adjusters
    2. B. Independent damage appraisers
    3. C. Insurance consultants
    4. D. Restoration contractors

    Answer: A

    Explanation: For section 2164-D, Insurer means any person authorized to transact insurance in this State and includes adjusters. Controlling text: "including, but not limited to, producers, adjusters and 3rd-party administrators".

    Reference: Title 24 a — 24-A M.R.S. §2164-D(1)

  4. 4The insured does not file proof of a Maine standard-fire-policy loss, and the designated mortgagee receives notice. What is the latest time allowed for the mortgagee's proof of loss after that notice?

    1. A. Within 20 days
    2. B. Within 30 days
    3. C. Within 60 days
    4. D. Within 90 days

    Answer: C

    Explanation: "If the insured fails to render proof of loss such mortgagee, upon notice, shall render proof of loss in the form herein specified within sixty (60) days thereafter" The mortgagee must render the specified proof within 60 days after notice of the insured's failure; the other periods do not state the contractual deadline.

    Reference: Maine Insurance Code, Title 24-A — 24-A M.R.S. §3002, Standard Fire Policy, Mortgagee interests and obligations

  5. 5To satisfy Maine's motor-vehicle financial-responsibility requirement, within how many days after rendition must a covered judgment be paid?

    1. A. Within 10 days after rendition of judgment
    2. B. Within 30 days after rendition of judgment
    3. C. Within 45 days after rendition of judgment
    4. D. Within 90 days after rendition of judgment

    Answer: B

    Explanation: Section 1605 requires the obligor to satisfy the judgment within 30 days after it is rendered. Controlling text: "within 30 days of rendition of judgment".

    Reference: Title 29 a — 29-A M.R.S. §1605(1)

  6. 6Under Maine's standard fire policy, recovery is limited to the lesser of policy limits or which measure?

    1. A. The actual cash value or cost to repair or replace with like kind and quality
    2. B. The insured's original asking price
    3. C. Double the tax assessment
    4. D. The mortgage balance in every case

    Answer: A

    Explanation: The Maine standard form limits recovery to the least of the policy amount, actual cash value, or the amount needed to repair or replace with material of like kind and quality. Controlling text: "actual cash value of the property".

    Reference: Title 24 a — 24-A M.R.S. §3002, Maine Standard Fire Insurance Policy, lines 1-6

  7. 7How does Maine define an insurable interest in property?

    1. A. An actual, lawful and substantial economic interest
    2. B. A future, sentimental and personal interest
    3. C. Temporary physical access without economic interest
    4. D. Professional involvement in adjusting the loss

    Answer: A

    Explanation: Maine defines insurable interest as any actual, lawful and substantial economic interest in the safety or preservation of the subject of the insurance. Controlling text: "any actual, lawful, and substantial economic interest".

    Reference: Title 24 a — 24-A M.R.S. §2406(2)

  8. 8How is Maine's Superintendent of Insurance selected under state law?

    1. A. Election by Maine voters
    2. B. Appointment by the Governor with legislative confirmation
    3. C. Selection by licensed Maine insurers
    4. D. Appointment by the Attorney General

    Answer: B

    Explanation: The statute provides that the superintendent is appointed by the Governor and subject to review by the legislative committee and confirmation by the Legislature. Controlling text: "appointed by the Governor".

    Reference: Title 24 a — 24-A M.R.S. §201

  9. 9An insurer engages in an unfair claims practice with conscious disregard of the statute. Under Maine section 2164-D, what frequency must be shown?

    1. A. No frequency is required
    2. B. At least two occurrences
    3. C. At least five occurrences
    4. D. A ten-year pattern

    Answer: A

    Explanation: The statute applies to conduct committed without just cause and performed with such frequency as to indicate a general business practice or is committed with conscious disregard of this section. Conscious disregard is an alternative basis. Controlling text: "conscious disregard of this section".

    Reference: Title 24 a — 24-A M.R.S. §2164-D(3)

  10. 10An insured has complied with all Maine standard-fire-policy requirements and intends to sue for a covered loss. What is the latest period for commencing that action, measured from inception of the loss?

    1. A. One year
    2. B. Two years
    3. C. Three years
    4. D. Four years

    Answer: B

    Explanation: "Suit. No suit or action on this policy for the recovery of any claim shall be sustainable in any court of law or equity unless all the requirements of this policy shall have been complied with, and unless commenced within two years next after inception of the loss." Because all policy duties were met, the remaining suit condition is commencement no later than two years after the loss began.

    Reference: Maine Insurance Code, Title 24-A, Section 3002 — 24-A M.R.S. §3002(1), Standard Fire Policy, Suit clause

Topics in this practice bank

These topics describe the available practice for Property and Casualty Adjuster. Review the examination outline and its sources for scope and allocation details.

  • I. Types of Property and Casualty Policies, Bonds, Terms, Related Terms and Concepts, and Provisions (27 questions)
    • Property General / I. TYPES OF POLICIES
    • Property General / I.A. Homeowners
    • Property General / I.A.1. HO-2
    • Property General / I.A.2. HO-3
    • Property General / I.A.3. HO-4
    • Property General / I.A.4. HO-5
    • Property General / I.A.5. HO-6
    • Property General / I.A.6. HO-8
    • Property General / I.B. Dwelling policies
    • Property General / I.B.1. DP-1
    • Property General / I.B.2. DP-2
    • Property General / I.B.3. DP-3
    • Property General / I.C. Commercial lines
    • Property General / I.C.1. Commercial Package Policy (CPP)
    • Property General / I.C.2. Commercial property
    • Property General / I.C.2.a. Commercial building and business personal property form
    • Property General / I.C.2.b. Causes of loss forms
    • Property General / I.C.2.c. Business income
    • Property General / I.C.2.d. Extra expense
    • Property General / I.C.2.e. Equipment breakdown
    • Property General / I.C.3. Business Owners Policy (BOP)
    • Property General / I.C.4. Builders Risk
    • Property General / I.C.5. Cyber First-Party Coverage
    • Property General / I.D. Inland marine
    • Property General / I.D.1. Personal Articles floaters
    • Property General / I.D.2. Commercial Property floaters
    • Property General / I.E. National Flood Insurance Program
    • Property General / I.F. Others
    • Property General / I.F.1. Earthquake
    • Property General / I.F.2. Mobile Homes
    • Property General / I.F.3. Watercraft
    • Property General / I.F.4. Farm Owners
    • Property General / I.F.5. Windstorm
    • Property General / II. INSURANCE TERMS AND RELATED CONCEPTS
    • Property General / II.A. Insurance
    • Property General / II.A.1. Law of Large Numbers
    • Property General / II.B. Insurable interest
    • Property General / II.C. Risk
    • Property General / II.C.1. Pure vs. Speculative Risk
    • Property General / II.D. Hazard
    • Property General / II.D.1. Moral
    • Property General / II.D.2. Morale
    • Property General / II.D.3. Physical
    • Property General / II.E. Peril
    • Property General / II.F. Loss
    • Property General / II.F.1. Direct
    • Property General / II.F.2. Indirect
    • Property General / II.G. Loss Valuation
    • Property General / II.G.1. Actual cash value
    • Property General / II.G.2. Replacement cost
    • Property General / II.G.3. Market value
    • Property General / II.G.4. Stated/agreed value
    • Property General / II.G.5. Salvage value
    • Property General / II.H. Proximate cause
    • Property General / II.I. Deductible
    • Property General / II.J. Indemnity
    • Property General / II.K. Limits of liability
    • Property General / II.L. Coinsurance/Insurance to value
    • Property General / II.M. Occurrence
    • Property General / II.N. Cancellation
    • Property General / II.O. Nonrenewal
    • Property General / II.P. Vacancy and unoccupancy
    • Property General / II.Q. Liability
    • Property General / II.Q.1. Absolute
    • Property General / II.Q.2. Strict
    • Property General / II.Q.3. Vicarious
    • Property General / II.R. Negligence
    • Property General / II.S. Binder
    • Property General / II.T. Endorsements
    • Property General / II.U. Blanket vs. Specific
    • Property General / III. POLICY PROVISIONS AND CONTRACT LAW
    • Property General / III.A. Declarations
    • Property General / III.B. Insuring agreement
    • Property General / III.C. Conditions
    • Property General / III.D. Exclusions
    • Property General / III.E. Definition of the insured
    • Property General / III.F. Duties of the insured
    • Property General / III.G. Obligations of the insurance company
    • Property General / III.H. Mortgagee rights
    • Property General / III.I. Proof of loss
    • Property General / III.J. Notice of claim
    • Property General / III.K. Appraisal
    • Property General / III.L. Other Insurance Provision
    • Property General / III.M. Subrogation
    • Property General / III.N. Elements of a contract
    • Property General / III.O. Warranties, representations, and concealment
    • Property General / III.P. Sources of underwriting information
    • Property General / III.Q. Fair Credit Reporting Act
    • Property General / III.R. Privacy Protection (Gramm Leach Bliley)
    • Property General / III.S. Policy Application
    • Property General / III.T. Terrorism Risk Insurance Act (TRIA)
    • Property General / III.U. Territory
    • Casualty General / I. TYPES OF POLICIES, BONDS, AND RELATED TERMS
    • Casualty General / I.A. Commercial general liability
    • Casualty General / I.A.1. Exposures
    • Casualty General / I.A.1.a. Premises and Operations
    • Casualty General / I.A.1.b. Products and Completed Operations
    • Casualty General / I.A.2. Coverage
    • Casualty General / I.A.2.a. Coverage A: Bodily Injury and Property Damage Liability (Occurrence, Claims made including Retroactive Date)
    • Casualty General / I.A.2.b. Coverage B: Personal Injury and Advertising Injury
    • Casualty General / I.A.2.c. Coverage C: Medical Payments
    • Casualty General / I.A.2.d. Supplemental Payments
    • Casualty General / I.A.2.e. Who is an insured
    • Casualty General / I.A.2.f. First named insured
    • Casualty General / I.A.2.g. Limits (Per occurrence, Annual Aggregate)
    • Casualty General / I.A.2.h. Damage to Property of Others
    • Casualty General / I.B. Automobile: personal auto and business auto
    • Casualty General / I.B.1. Liability
    • Casualty General / I.B.1.a. Bodily Injury
    • Casualty General / I.B.1.b. Property Damage
    • Casualty General / I.B.1.c. Split Limits
    • Casualty General / I.B.1.d. Combined Single Limit
    • Casualty General / I.B.2. Medical Payments
    • Casualty General / I.B.3. Physical Damage (collision; other than collision; specified perils)
    • Casualty General / I.B.4. Uninsured motorists
    • Casualty General / I.B.5. Underinsured motorists
    • Casualty General / I.B.6. Who is an insured
    • Casualty General / I.B.7. Types of Auto
    • Casualty General / I.B.7.a. Owned
    • Casualty General / I.B.7.b. Non-owned
    • Casualty General / I.B.7.c. Hired
    • Casualty General / I.B.7.d. Temporary Substitute
    • Casualty General / I.B.7.e. Newly Acquired Autos
    • Casualty General / I.B.7.f. Transportation Expense and Rental Reimbursement Expense
    • Casualty General / I.B.8. Auto Dealers Coverage Form, including Garagekeepers Insurance
    • Casualty General / I.B.9. Exclusions
    • Casualty General / I.B.10. Individual Named Insured and Drive Other Car (DOC)
    • Casualty General / I.B.11. Mobile equipment
    • Casualty General / I.C. Workers Compensation Insurance, Employers Liability Insurance, and Related Issues
    • Casualty General / I.C.1. Standard policy concepts
    • Casualty General / I.C.1.a. Who is an employee/employer
    • Casualty General / I.C.1.b. Compensation
    • Casualty General / I.C.2. Work-related vs. non-work-related
    • Casualty General / I.C.3. Other states’ insurance
    • Casualty General / I.C.4. Employers Liability
    • Casualty General / I.C.5. Exclusive remedy
    • Casualty General / I.C.6. Premium Determination
    • Casualty General / I.D. Crime
    • Casualty General / I.D.1. Employee Dishonesty
    • Casualty General / I.D.2. Theft
    • Casualty General / I.D.3. Robbery
    • Casualty General / I.D.4. Burglary
    • Casualty General / I.D.5. Forgery and Alteration
    • Casualty General / I.D.6. Mysterious disappearance
    • Casualty General / I.E. Bonds
    • Casualty General / I.E.1. Surety
    • Casualty General / I.E.2. Fidelity
    • Casualty General / I.F. Professional liability
    • Casualty General / I.F.1. Errors and Omissions
    • Casualty General / I.F.2. Medical Malpractice
    • Casualty General / I.F.3. Directors and Officers (D&O)
    • Casualty General / I.F.4. Employment Practices Liability (EPLI)
    • Casualty General / I.F.5. Cyber liability and data breach, funds transfer
    • Casualty General / I.F.6. Liquor liability
    • Casualty General / I.G. Umbrella/Excess Liability
    • Casualty General / I.H. Business Owners Policy (BOP)
    • Casualty General / II. INSURANCE TERMS AND RELATED CONCEPTS
    • Casualty General / II.A. Risk
    • Casualty General / II.B. Hazards
    • Casualty General / II.B.1. Moral
    • Casualty General / II.B.2. Morale
    • Casualty General / II.B.3. Physical
    • Casualty General / II.C. Indemnity
    • Casualty General / II.D. Insurable interest
    • Casualty General / II.E. Loss valuation
    • Casualty General / II.E.1. Actual cash value
    • Casualty General / II.E.2. Replacement cost
    • Casualty General / II.E.3. Market value
    • Casualty General / II.E.4. Stated/agreed value
    • Casualty General / II.E.5. Salvage value
    • Casualty General / II.F. Negligence
    • Casualty General / II.G. Liability
    • Casualty General / II.H. Occurrence
    • Casualty General / II.I. Binders
    • Casualty General / II.J. Warranties
    • Casualty General / II.K. Representations
    • Casualty General / II.L. Concealment
    • Casualty General / II.M. Deposit Premium/Audit
    • Casualty General / II.N. Certificate of Insurance
    • Casualty General / II.O. Law of Large Numbers
    • Casualty General / II.P. Pure vs. Speculative Risk
    • Casualty General / II.Q. Endorsements
    • Casualty General / II.R. Damages
    • Casualty General / II.R.1. Compensatory
    • Casualty General / II.R.1.a. General
    • Casualty General / II.R.1.b. Special
    • Casualty General / II.R.2. Punitive
    • Casualty General / II.S. Compliance with provisions of Fair Credit Reporting Act
    • Casualty General / III. POLICY PROVISIONS
    • Casualty General / III.A. Declarations
    • Casualty General / III.B. Insuring agreement
    • Casualty General / III.C. Conditions
    • Casualty General / III.D. Exclusions and Limitations
    • Casualty General / III.E. Definition of the insured
    • Casualty General / III.F. Duties of the insured after a loss
    • Casualty General / III.G. Cancellation and nonrenewal provisions
    • Casualty General / III.H. Supplementary payments
    • Casualty General / III.I. Proof of loss
    • Casualty General / III.J. Notice of claim
    • Casualty General / III.K. Other insurance
    • Casualty General / III.L. Subrogation
    • Casualty General / III.M. Loss settlement provisions including consent to settle a loss
    • Casualty General / III.N. Terrorism Risk Insurance Act (TRIA)
  • II. Maine Insurance Law Common to Property and Casualty (5 questions)
    • Pc Law / A. Superintendent of Insurance
    • Pc Law / A.1. Broad powers
    • Pc Law / A.2. Notice and hearing
    • Pc Law / B. Licensing Requirements
    • Pc Law / B.1. Types of licenses
    • Pc Law / B.1.a. Property and Casualty Adjuster
    • Pc Law / B.1.b. Multiple Peril Crop Insurance Adjuster (MPCI)
    • Pc Law / B.2. Exemptions/exceptions
    • Pc Law / B.3. License refusal, termination, expiration, revocation, suspension, and nonrenewal
  • III. Claims (9 questions)
  • IV. Contracts (4 questions)
  • V. Maine Automobile Insurance (3 questions)
    • A. Passenger
    • B. Commercial
  • VI. Maine Laws and Rules Pertinent to Property Insurance (2 questions)
    • A. Maine Standard Fire Policy

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