PROPERTY AND CASUALTY EXAM
LOUISIANA EXAM QUESTIONS AND
CORRECT ANSWERS LATEST UPDATE .
LOUISIANA PROPERTY AND CASUALTY INSURANCE –
PRACTICE EXAMINATION (150 Questions)
SECTION 1: INSURANCE REGULATION (Questions 1–15)
1. What is the primary purpose of insurance licensing laws?
• A. To generate revenue for the state
• B. To assure the public that only competent, trustworthy individuals sell
insurance
• C. To limit the number of insurance agents
• D. To standardize insurance rates across all companies
Answer: B. To assure the public that only competent, trustworthy individuals sell
insurance
Rationale: The purpose of insurance licensing is to protect the public by ensuring
that only qualified and ethical individuals are authorized to sell insurance. This
promotes public trust and safeguards consumer interests.
2. A producer's license in Louisiana is valid for how many years?
• A. 1 year
• B. 2 years
• C. 3 years
• D. 4 years
,Answer: B. 2 years
*Rationale: Louisiana producer licenses are issued for a 2-year term. Property and
Casualty licenses renew in odd-numbered years, while Life and Health licenses
renew in even-numbered years.*
3. How many continuing education (CE) hours are required to renew a Louisiana
property and casualty producer license?
• A. 12 hours
• B. 24 hours
• C. 36 hours
• D. 48 hours
Answer: B. 24 hours
*Rationale: Louisiana requires 24 hours of continuing education for each 2-year
license renewal period. This ensures producers stay current with insurance laws
and industry practices.*
4. If an insurance company cancels a producer's appointment, the Commissioner
must be notified within:
• A. 10 days
• B. 15 days
• C. 30 days
• D. 60 days
Answer: C. 30 days
Rationale: Insurers must notify the Commissioner of Insurance within 30 days
when a producer's appointment is terminated. This allows the state to track
producer relationships and investigate potential issues.
5. A temporary license issued by the Commissioner of Insurance may not
exceed:
• A. 90 days
, • B. 120 days
• C. 180 days
• D. 365 days
Answer: C. 180 days
Rationale: Temporary licenses are issued for a maximum of 180 days. They may be
granted to surviving spouses of deceased producers, designees of disabled
producers, or persons taking over a family agency.
6. All insurers in Louisiana must be audited by the Commissioner of Insurance at
least once every:
• A. 1 year
• B. 3 years
• C. 5 years
• D. 10 years
Answer: C. 5 years
Rationale: The Commissioner is required to examine each domestic insurer at least
once every 5 years to ensure financial solvency and compliance with state
insurance laws.
7. Which federal law grants states primary authority to regulate insurance?
• A. Gramm-Leach-Bliley Act
• B. McCarran-Ferguson Act
• C. Dodd-Frank Act
• D. Sherman Anti-Trust Act
Answer: B. McCarran-Ferguson Act
*Rationale: The McCarran-Ferguson Act of 1945 declared that the federal
government would regulate insurance only to the extent that states do not. This
gives states primary regulatory authority over the insurance industry.*
, 8. In order to transact insurance business in Louisiana, a corporation must have
a:
• A. Business license
• B. Certificate of Authority
• C. Fiduciary bond
• D. Letter of credit
Answer: B. Certificate of Authority
Rationale: A Certificate of Authority is issued by the Commissioner of Insurance
and authorizes an insurance company to conduct business in Louisiana. Without it,
an insurer cannot legally sell policies in the state.
9. What is the renewal fee for a Louisiana producer license?
• A. $25
• B. $50
• C. $75
• D. $100
**Answer: B. $50**
*Rationale: The biennial renewal fee for a Louisiana producer license is $50. This
fee is paid at the time of renewal along with proof of completed continuing
education.*
10. Property and Casualty producer licenses in Louisiana are renewed in which
years?
• A. Even-numbered years
• B. Odd-numbered years
• C. Every year
• D. Every 4 years
LOUISIANA EXAM QUESTIONS AND
CORRECT ANSWERS LATEST UPDATE .
LOUISIANA PROPERTY AND CASUALTY INSURANCE –
PRACTICE EXAMINATION (150 Questions)
SECTION 1: INSURANCE REGULATION (Questions 1–15)
1. What is the primary purpose of insurance licensing laws?
• A. To generate revenue for the state
• B. To assure the public that only competent, trustworthy individuals sell
insurance
• C. To limit the number of insurance agents
• D. To standardize insurance rates across all companies
Answer: B. To assure the public that only competent, trustworthy individuals sell
insurance
Rationale: The purpose of insurance licensing is to protect the public by ensuring
that only qualified and ethical individuals are authorized to sell insurance. This
promotes public trust and safeguards consumer interests.
2. A producer's license in Louisiana is valid for how many years?
• A. 1 year
• B. 2 years
• C. 3 years
• D. 4 years
,Answer: B. 2 years
*Rationale: Louisiana producer licenses are issued for a 2-year term. Property and
Casualty licenses renew in odd-numbered years, while Life and Health licenses
renew in even-numbered years.*
3. How many continuing education (CE) hours are required to renew a Louisiana
property and casualty producer license?
• A. 12 hours
• B. 24 hours
• C. 36 hours
• D. 48 hours
Answer: B. 24 hours
*Rationale: Louisiana requires 24 hours of continuing education for each 2-year
license renewal period. This ensures producers stay current with insurance laws
and industry practices.*
4. If an insurance company cancels a producer's appointment, the Commissioner
must be notified within:
• A. 10 days
• B. 15 days
• C. 30 days
• D. 60 days
Answer: C. 30 days
Rationale: Insurers must notify the Commissioner of Insurance within 30 days
when a producer's appointment is terminated. This allows the state to track
producer relationships and investigate potential issues.
5. A temporary license issued by the Commissioner of Insurance may not
exceed:
• A. 90 days
, • B. 120 days
• C. 180 days
• D. 365 days
Answer: C. 180 days
Rationale: Temporary licenses are issued for a maximum of 180 days. They may be
granted to surviving spouses of deceased producers, designees of disabled
producers, or persons taking over a family agency.
6. All insurers in Louisiana must be audited by the Commissioner of Insurance at
least once every:
• A. 1 year
• B. 3 years
• C. 5 years
• D. 10 years
Answer: C. 5 years
Rationale: The Commissioner is required to examine each domestic insurer at least
once every 5 years to ensure financial solvency and compliance with state
insurance laws.
7. Which federal law grants states primary authority to regulate insurance?
• A. Gramm-Leach-Bliley Act
• B. McCarran-Ferguson Act
• C. Dodd-Frank Act
• D. Sherman Anti-Trust Act
Answer: B. McCarran-Ferguson Act
*Rationale: The McCarran-Ferguson Act of 1945 declared that the federal
government would regulate insurance only to the extent that states do not. This
gives states primary regulatory authority over the insurance industry.*
, 8. In order to transact insurance business in Louisiana, a corporation must have
a:
• A. Business license
• B. Certificate of Authority
• C. Fiduciary bond
• D. Letter of credit
Answer: B. Certificate of Authority
Rationale: A Certificate of Authority is issued by the Commissioner of Insurance
and authorizes an insurance company to conduct business in Louisiana. Without it,
an insurer cannot legally sell policies in the state.
9. What is the renewal fee for a Louisiana producer license?
• A. $25
• B. $50
• C. $75
• D. $100
**Answer: B. $50**
*Rationale: The biennial renewal fee for a Louisiana producer license is $50. This
fee is paid at the time of renewal along with proof of completed continuing
education.*
10. Property and Casualty producer licenses in Louisiana are renewed in which
years?
• A. Even-numbered years
• B. Odd-numbered years
• C. Every year
• D. Every 4 years
