Property Insurance
21%of exam
HO FormsDwelling DPCommercial PropertyNamed vs OpenCoinsuranceValued Policy
Casualty & Auto
32%of exam
15/30/25CGL CoveragesAuto PartsWorkers CompBAP SymbolsDirect Action
LA Regulation
24%of exam
LDINo-Pay-No-PlayCitizensLIGASurplus LinesLicensing
Ethics & Fundamentals
23%of exam
Fiduciary DutyRebatingTwistingUnfair TradeContractsAgency
Quick Facts
- Exam
- Series 106
- Questions
- 150 scored
- Time
- 160 minutes
- Pass
- 70%
- Fee
- $58
- Provider
- PSI for LDI
- Retake
- Next day
- Auto min
- 15/30/25
- CE
- 24hr per 2yr
HO Coverages
A Home B Other C Stuff D Use
A: dwelling structureB: other structures 10%C: personal propertyD: loss of use ALEE: personal liabilityF: medical payments
Named vs Open Peril
Named Peril
- Listed causes only
- Insured proves cause
- Narrower coverage
- Lower premium
Open Peril
- All except exclusions
- Insurer proves exclusion
- Broader coverage
- Higher premium
Listed vs all-except
HO Form Picker
- Owner-occupied house→HO-3(Open dwelling)
- High-value broad contents→HO-5(Open contents)
- Condo unit owner→HO-6
- Older home market below RC→HO-8(Modified cost)
- Broad named peril affordable→HO-2
- Renter needs contents only→HO-4
- Scheduled jewelry needed→Endorse HO-3 or HO-5
- Non-owner occupied rental→DP-3(Open peril)
Property Fundamentals
- Peril
- Cause of loss
- Hazard
- Increases peril chance
- Open peril
- All except exclusions
- Named peril
- Listed causes only
- Replacement cost
- No depreciation deducted
- ACV
- Replacement minus depreciation
- Coinsurance
- Carry required insurance-to-value
- Subrogation
- Insurer recovers from at-fault party
- Insurable interest
- Financial stake in property
- Deductible
- Insured's retained loss portion
Replacement Cost vs ACV
Replacement Cost
- No depreciation deducted
- Like kind and quality
- Higher premium
- Full rebuild cost
ACV
- Depreciation deducted
- Market value based
- Lower premium
- Older property pays less
New vs depreciated
Homeowners Coverages
- Coverage A
- Dwelling structure
- Coverage B
- Other structures 10% of A
- Coverage C
- Personal property contents
- Coverage D
- Loss of use and ALE
- Coverage E
- Personal liability
- Coverage F
- Medical payments to others
- HO-3
- Open dwelling, named contents
- HO-5
- Open dwelling and contents
- HO-6
- Condo unit owners
- HO-8
- Modified coverage older homes
Dwelling & Commercial Property
- DP-1
- Basic named peril
- DP-2
- Broad named peril
- DP-3
- Open peril dwelling
- Builders risk
- During construction only
- BPP
- Business personal property
- Business income
- Lost profits plus expenses
- Ordinance/law
- Code upgrade rebuilding costs
- BOP
- Small business package
- Vacancy
- Coverage reduced after 60 days
- RC endorsement
- Removes ACV depreciation
Split Limits
Person then accident then property
15 = BI per person30 = BI per accident total25 = PD per accident
Collision vs Comprehensive
Collision
- Moving vehicle impact
- Upset or overturn
- Collision with object
- Higher deductible option
Comprehensive
- Non-collision losses
- Theft and vandalism
- Hail, fire, animal
- Glass breakage covered
Crash vs other loss
Auto Coverage Picker
- At-fault injures others→Part A liability
- Insured's own medical bills→Part B MedPay
- Hit by uninsured driver→Part C UM/UIM
- Crash damages insured car→Part D collision
- Hail, theft, glass, animal→Part D comprehensive
- State minimum only needed→15/30/25
- Reject UM in writing→Signed rejection form
- Business vehicle use→Commercial auto policy
Personal Auto Coverages
- Part A
- Liability coverage
- Part B
- Medical payments
- Part C
- UM/UIM coverage
- Part D
- Physical damage
- Collision
- Moving vehicle impact
- Comprehensive
- Non-collision losses
- 15/30/25
- LA compulsory minimum limits
- Split limits
- Per person, accident, and PD
- MedPay
- No-fault occupant medical
- Tort state
- At-fault system, not no-fault
Commercial Casualty
- CGL Coverage A
- BI and PD liability
- CGL Coverage B
- Personal and advertising injury
- CGL Coverage C
- Medical payments to others
- Products-comp ops
- Defective products liability
- Aggregate limit
- Max per policy period
- BAP Symbol 1
- Any auto, broadest
- BAP Symbol 7
- Specifically described autos
- Workers comp
- Exclusive remedy for employees
- Surety bond
- Three-party performance guarantee
- Fidelity bond
- Employee dishonesty coverage
No-Pay-No-Play Threshold
Uninsured loses first $100k both
$100k bodily injury barred$100k property damage barredDWI conviction is exceptionEffective August 1 2025
Direct Action vs No-Pay-No-Play
Direct Action
- Sue insurer directly
- La. R.S. 22:1269
- Injured party's right
- Insured deceased is basis
No-Pay-No-Play
- Uninsured barred recovery
- La. R.S. 32:866
- First $100k BI and PD
- DWI conviction is exception
Sue insurer vs barred recovery
Licensed vs Unlicensed Activity
- Sell or solicit policy→Active license required
- Collect premium from insured→Active license required
- Explain quote or coverage→Active license required
- Refer client to agent→No license needed
- Back-office clerical work→No license needed
- Adjust or investigate claims→Adjuster license needed
- Market insurance products→Active license required
- Transact with lapsed license→Prohibited, enforcement risk
Louisiana-Specific Laws
- Direct Action
- Sue insurer directly22:1269
- No-Pay-No-Play
- Uninsured barred first $100k32:866
- Valued Policy
- Total loss pays face value22:1318
- LA Citizens
- Property insurer of last resort
- LIGA
- Admitted insurer insolvency claims
- Surplus lines
- Nonadmitted market, no LIGA
- Hurricane deductible
- Percentage of dwelling limit
- 15/30/25
- Compulsory auto minimums
- Title 22
- Louisiana insurance statutes
- Commissioner
- Elected statewide by voters
CE Requirements
24 total, 3 ethics, 3 flood
24 hours per 2-year cycle3 ethics hours required3 NFIP flood hours requiredRenewal tied to birth month
Admitted vs Surplus Lines
Admitted
- LDI-approved rates
- LIGA protection applies
- Standard market
- Policy forms filed
Surplus Lines
- Nonadmitted insurer
- No LIGA coverage
- Diligent search required first
- Hard-to-place risks
Guaranty fund vs no guaranty
Licensing & Regulation
- LDI
- Louisiana insurance regulator
- PSI
- Exam administrator vendor
- Series 106
- Combined P&C producer exam
- Pre-license
- 40hr dropped June 2022
- CE total
- 24hr per 2-year cycle
- CE ethics
- 3 hours required
- CE flood
- 3 hours NFIP required
- Fingerprinting
- $39.25 via IdentoGO
- NIPR
- License application portal
- Temp license
- 90 days with sponsor
Agent vs Broker
Agent
- Represents insurer
- Appointed by carrier
- Can bind coverage
- Commission from insurer
Broker
- Represents insured
- No carrier appointment
- Cannot bind directly
- Fee from insured
Insurer side vs insured side
Rebating vs Allowed Inducement
Rebating
- Inducing sale with value
- Cash or gifts to client
- Prohibited in Louisiana
- Not in policy contract
Allowed Inducement
- Routine educational material
- Nominal value items
- Not tied to purchase
- Reasonable advertising
Tied to sale vs general
Ethics & Producer Conduct
- Fiduciary duty
- Handle premiums in trust
- Rebating
- Inducing sale with value
- Twisting
- Misleading policy replacement
- Misrepresentation
- False policy terms stated
- Commingling
- Mixing premiums personal funds
- Unfair trade
- Deceptive business methods
- Replacement
- Swap existing policy for new
- Suitability
- Match policy to client need
- Defamation
- Maliciously injuring another producer
Common Traps
Named vs Open Peril
Named: listed causes only ≠ Open: all except exclusions
RC vs ACV
RC: no depreciation deducted ≠ ACV: depreciation deducted
Liability vs Property
Liability: third-party claims ≠ Property: first-party damage
Collision vs Comprehensive
Collision: vehicle impact only ≠ Comprehensive: theft hail animal
Rebating vs Inducement
Rebating: tied to sale, prohibited ≠ Inducement: nominal, not tied
Admitted vs Surplus Lines
Admitted: LIGA protected ≠ Surplus: no LIGA coverage
Direct Action vs No-Pay-No-Play
Direct Action: sue insurer directly ≠ No-Pay-No-Play: barred recovery
Last Minute
- 1.150 questions, 160 min, 70% pass
- 2.Auto min 15/30/25
- 3.Direct Action: sue insurer directly
- 4.No-Pay-No-Play: first $100k barred
- 5.Valued policy: total loss pays amount
- 6.LIGA: admitted only, surplus excluded
- 7.Citizens: property insurer of last resort
- 8.CE 24hr/2yr, 3 ethics/flood
- 9.Pre-license 40hr dropped June 2022
- 10.HO-3: open dwelling, named contents
- 11.CGL: A covers BI and PD
- 12.Workers comp: exclusive remedy
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