Property General Knowledge
35.7%of exam
Casualty General Knowledge
35.7%of exam
Maine State Laws and Rules
28.6%of exam
Quick Facts
- Exam code
- 12-ME-03
- Credential
- Maine P&C Producer
- Questions
- 157 delivered, 140 scored
- Time
- 3 hours 30 minutes
- Pass
- Scaled 70
- Fee
- $80 per attempt
- Provider
- Pearson VUE test center
- Prelicensing
- None required
- Retake wait
- One day
- Maine law share
- 40 of 140
- Calculator
- Non-programmable allowed
- Blueprint
- Feb 2, 2026
HO Form Broadness Ladder
HO-8 narrowest, HO-3 common, HO-5 broadest
HO-8: modified settlementHO-2: broad namedHO-3: open dwellingHO-5: open both
Named vs Open Perils
Named Perils
- Listed causes only
- Insured proves peril
- DP-1, DP-2, HO-2
Open Perils
- All but excluded
- Insurer proves exclusion
- DP-3, HO-3, HO-5
Who carries the burden
Which HO or DP Form
- Renter needs contents coverage→HO-4(Tenants form)
- Condo unit owner→HO-6(Improvements and betterments)
- Typical owner-occupied home→HO-3(Open dwelling, named contents)
- Wants open-perils contents→HO-5(Broadest personal form)
- Budget named-perils home→HO-2(Broad named perils)
- Market value below rebuild→HO-8(Modified settlement basis)
- Landlord rents the dwelling→DP-3(Add liability endorsement)
- Flood is the exposure→NFIP policy(Excluded by all forms)
HO Forms
- HO-2
- Broad named perils
- HO-3
- Open dwelling, named contents
- HO-4
- Tenants; contents plus liability
- HO-5
- Open dwelling and contents
- HO-6
- Condo unit-owners form
- HO-8
- Older home, modified settlement
HO-3 vs HO-5
HO-3
- Dwelling open perils
- Contents named perils
- Most common form
HO-5
- Dwelling open perils
- Contents open perils
- Broadest personal form
Contents burden differs
HO Coverage Letters
- Coverage A
- Dwelling
- Coverage B
- Other structures, 10% A
- Coverage C
- Personal property, 50% A
- Coverage D
- Loss of use
- Coverage E
- Personal liability, $100,000 minimum
- Coverage F
- Medical payments, $1,000 minimum
ACV vs Replacement Cost
ACV
- Depreciation subtracted
- Lower payout
- DP-1 and HO-8
Replacement Cost
- No depreciation deducted
- Holdback until repaired
- HO-3 dwelling default
Depreciated vs full cost
DP Forms
- DP-1
- Basic named perils, ACV
- DP-2
- Broad named perils, RC
- DP-3
- Open perils dwelling
- Liability
- Not automatic; endorse it
- Theft
- Not automatic; endorse it
- Typical use
- Rentals, seasonal dwellings
Other Property Policies
- CPP
- Two or more coverage parts
- BOP
- Packaged small-business property, liability
- Builders risk
- Property under construction
- Inland marine
- Movable property floaters
- NFIP
- Flood, excluded everywhere else
- Equipment breakdown
- Boiler, machinery, electrical failure
Causes of Loss Forms
- Basic
- Fewest named perils
- Broad
- Adds ice, water, collapse
- Special
- Open perils, exclusions apply
- Named perils
- Insured proves listed peril
- Open perils
- Insurer proves an exclusion
Valuation and Coinsurance
- ACV
- Replacement cost minus depreciation
- Replacement cost
- No depreciation deducted
- Market value
- Selling price, not rebuild
- Stated/agreed value
- Suspends the coinsurance penalty
- Salvage value
- Damaged property resale worth
- Coinsurance formula
- Carried / required x loss
- Recoverable depreciation
- Released after repair completed
Property Terms
- Insurable interest
- Financial loss if damaged
- Proximate cause
- Unbroken chain to damage
- Moral hazard
- Dishonesty, such as arson
- Morale hazard
- Carelessness because insurance exists
- Physical hazard
- Tangible dangerous condition
- Vacancy
- Empty and no contents
- Unoccupancy
- Furnished but nobody present
- Indirect loss
- Consequential, like lost income
Property Provisions
- Declarations
- Who, what, how much
- Insuring agreement
- The insurer's core promise
- Mortgagee rights
- Paid despite insured's acts
- Proof of loss
- Sworn statement of damage
- Appraisal
- Amount disputes, not coverage
- Other insurance
- Pro rata by limits
- Subrogation
- Insurer pursues responsible party
- Concealment
- Silence on material fact
CGL Coverages A-B-C
A bodily, B personal, C medical
A: BI and PDB: personal, advertising injuryC: med pay, no fault
Occurrence vs Claims-Made
Occurrence
- Injury date triggers
- No retroactive date
- No tail needed
Claims-Made
- Report date triggers
- Retroactive date required
- Tail extends reporting
Loss date vs report date
Which Liability Limit Pays
- One CGL occurrence→Each occurrence limit
- Many claims one year→General aggregate(Depletes with payments)
- Product injured a customer→Products aggregate(Separate from general)
- Libel or wrongful eviction→Coverage B limit(Personal, advertising injury)
- Small injury, no fault→Coverage C medical(Heads off suits)
- Defense costs incurred→Outside the limit(CGL supplementary payments)
- One claimant, severe injury→Combined single limit(No per-person cap)
CGL Coverage Parts
- Coverage A
- Bodily injury, property damage
- Coverage B
- Personal, advertising injury
- Coverage C
- Medical payments, no fault
- Supplementary payments
- Paid outside the limit
- Each occurrence limit
- Caps one occurrence
- General aggregate
- Caps policy-period payouts
- Products aggregate
- Separate completed-operations cap
- First named insured
- Gets notices, pays premium
PAP Parts A-D
A liability, B medical, C uninsured, D damage
A: liabilityB: medical paymentsC: UM/UIMD: physical damage
Surety vs Fidelity
Surety
- Three parties
- Guarantees performance
- Principal reimburses surety
Fidelity
- Employer is insured
- Covers employee dishonesty
- No reimbursement sought
Guarantee vs true insurance
Auto Coverage
- PAP Part A
- Liability to others
- PAP Part B
- Medical payments
- PAP Part C
- Uninsured motorists
- PAP Part D
- Physical damage
- Split limits
- Per person, per accident
- Combined single limit
- One limit per accident
- Non-owned auto
- Excess over owner's policy
- Hired auto
- Rented, leased, borrowed
- Temporary substitute
- Replaces disabled owned auto
- Garagekeepers
- Customers' autos in care
Per Occurrence vs Aggregate
Per Occurrence
- Caps one event
- Same every occurrence
- Never exceeds aggregate
Aggregate
- Caps the policy period
- Depletes with payments
- Products has its own
One event vs year
Bonds and Crime
- Surety bond
- Three-party performance guarantee
- Fidelity bond
- Employee dishonesty insurance
- Principal
- Party who must perform
- Obligee
- Party the bond protects
- Burglary
- Forcible entry, visible marks
- Robbery
- Taken by force, threat
- Mysterious disappearance
- Gone, no known cause
Casualty Terms
- Negligence elements
- Duty, breach, cause, damages
- Special damages
- Measurable economic losses
- General damages
- Pain and suffering
- Punitive damages
- Punish; often uninsurable
- Absolute liability
- Liable regardless of fault
- Strict liability
- Defective product, no negligence
- Vicarious liability
- Answerable for another's acts
- Certificate of insurance
- Evidence only, no rights
- Deposit premium
- Estimate, audited at expiration
Workers Compensation
- Part One
- Statutory benefits, no limit
- Part Two
- Employers liability, has limits
- Exclusive remedy
- Bars most employee suits
- Other states insurance
- Covers unlisted state operations
- Premium basis
- Payroll by class code
- Experience modification
- Prior losses adjust premium
Casualty Provisions
- Duties after loss
- Notice, cooperate, no payments
- Consent to settle
- Insured approves the settlement
- Hammer clause
- Caps insurer after refusal
- Retroactive date
- Claims-made coverage start
- Extended reporting period
- Tail for reporting claims
- TRIA
- Certified acts, written rejection
Professional and Excess Lines
- E&O
- Professional service mistakes
- Medical malpractice
- Practitioner professional liability
- D&O
- Board management decisions
- EPLI
- Harassment, discrimination, wrongful termination
- Cyber liability
- Data breach, funds transfer
- Umbrella
- Excess over underlying limits
Maine Exam Question Split
Property 50, Casualty 50, Maine 40
Property: 22/15/13Casualty: 23/15/12Maine: 28/2/10140 scored total
Cancellation vs Nonrenewal
Cancellation
- Ends policy midterm
- 20 days notice
- 10 days nonpayment
Nonrenewal
- Ends at expiration
- 30 days notice
- Grounds not required
Midterm ending vs expiration
Which Maine Notice Period Applies
- Personal auto, nonpayment→10 days(24-A 2915)
- Personal auto, other reason→20 days(24-A 2915)
- Property policy cancellation→20 days(24-A 3050)
- Personal lines nonrenewal→30 days(24-A 2917, 3051)
- Commercial cancellation notice→10 days(24-A 2908)
- Commercial nonrenewal notice→30 days(24-A 2908)
- Insured wants a hearing→30 days(Apply to superintendent)
- Insurer appoints a producer→15 days(24-A 1420-M)
Maine Licensing Rules
- Superintendent
- Heads Bureau of Insurance
- Superintendent term
- 5 years
- Appointment filing
- 15 days after contract1420-M
- Temporary license
- Up to 180 days1420-J
- Continuing education
- 24 hours every 2 years1482
- Ethics credits
- 3 of the 24
- Retake wait
- One day before rescheduling
- Nonresident licensing
- No Maine exam required
Maine Auto Numbers
50 / 100 / 25 plus 2,000 MedPay
50: BI per person100: BI per accident25: property damage2,000: MedPay minimum
UM vs UIM
UM
- At-fault driver uninsured
- Hit-and-run included
- Pays as if insured
UIM
- At-fault driver underinsured
- Limits too low
- Fills the shortfall
No coverage vs too little
Which Maine Auto Rule
- Registering a Maine vehicle→50/100/25 minimum(29-A 1605)
- Medical bills coverage required→$2,000 MedPay(Mandatory in Maine)
- UM/UIM limits not chosen→Equal to liability(24-A 2902)
- Buyer wants lower UM→Signed selection form(Before effective date)
- Household member injured→Cannot be excluded(24-A 2902-D)
- Risky household driver→Named driver exclusion(24-A 2916-B)
- Declined by every insurer→Maine Automobile Insurance Plan(Residual market)
Maine Notice Day Counts
- Personal cancellation
- 20 days before effective2915, 3050
- Nonpayment cancellation
- 10 days before effective2915, 3050
- Personal nonrenewal
- 30 days before expiration2917, 3051
- Auto grounds attach
- After 60 days2914
- Property grounds attach
- After 90 days3049
- Commercial cancellation
- 10 days after receipt2908
- Commercial nonrenewal
- 30 days after receipt2908
- Hearing request
- 30 days to superintendent
Maine Notice Ladder
10 nonpayment, 20 cancel, 30 nonrenew
10 days: nonpayment20 days: cancellation30 days: nonrenewal60/90: grounds attach
Maine Dollar Figures
- Exam fee
- $80 per attempt
- Guaranty per claim
- $300,000 maximum4438
- Guaranty workers comp
- Paid in full
- Unearned premium floor
- Only above $50
- Unearned premium cap
- $25,000 per policy
- Cyber covered claims
- $500,000 per event
- Individual civil penalty
- $500 per violation12-A
- Entity civil penalty
- $10,000 per violation12-A
Maine Unfair Practices
- Rebating
- Inducement not in policy2162
- Twisting
- Misleading replacement of coverage2155
- Defamation
- False statement harming insurer2157
- False advertising
- Untrue policy information published2154
- Surplus lines
- Unauthorized insurer, licensed producer
- Claim overdue
- 30 days after proof2436
- Overdue interest
- 1.5% per month2436
Maine Property Law
- Standard fire policy
- Minimum required wording3002
- Proof of loss
- Within 60 days
- Fire loss payable
- 60 days after proof
- Suit deadline
- 2 years after loss
- Vacancy suspension
- Beyond 60 consecutive days
- Appraiser named
- Within 20 days
- Hurricane deductible
- Disclosure rules apply3061
Maine Auto Law
- Liability minimum
- 50/100/2529-A 1605
- MedPay minimum
- $2,000 required
- UM/UIM default
- Equal to liability limits2902
- Lower UM/UIM
- Signed, dated selection form
- Family exclusion
- Prohibited outright2902-D
- Named driver exclusion
- Written request by insured2916-B
- Maine Automobile Insurance Plan
- Residual market for auto2325
- TNC coverage
- Rideshare, peer-to-peer rules
Maine Workers Compensation
- Total incapacity
- 2/3 average weekly wage39-A 212
- Exclusive remedy
- Employer exempt from suit39-A 104
- Securing payment
- Insure or self-insure
- Board rules
- Workers Compensation Board procedures
- Benefit maximum
- Statutory cap applies
Common Traps
Scaled score, not percent
70 is a scaled score ≠ Not 70% of questions
60-day auto vs 90-day property
Auto grounds attach at 60 ≠ Property grounds attach at 90
Occurrence limit vs aggregate
Occurrence caps one event ≠ Aggregate caps the period
Cancellation vs nonrenewal
Cancellation ends midterm ≠ Nonrenewal waits for expiration
Certificate vs additional insured
Certificate confers no rights ≠ Endorsement grants insured status
Guaranty cap vs comp benefits
Other claims capped $300,000 ≠ Workers comp paid fully
Claim overdue vs fire payable
Most claims overdue 30 days ≠ Fire loss payable 60 days
Surety reimbursed, fidelity not
Surety recovers from principal ≠ Fidelity insurer absorbs loss
DP forms lack liability
DP liability by endorsement ≠ HO packages include liability
157 delivered, 140 scored
17 pretest items unscored ≠ Pretest never identified onscreen
Last Minute
- 1.157 delivered; 140 scored questions
- 2.3.5 hours; scaled 70 passes
- 3.Exam fee: $80 per attempt
- 4.Scored split: 50 / 50 / 40
- 5.Maine auto minimum: 50/100/25
- 6.MedPay required: $2,000 minimum
- 7.UM/UIM equals liability unless rejected
- 8.Cancel 20 days; nonpayment 10
- 9.Nonrenewal notice: 30 days
- 10.Auto grounds 60; property 90
- 11.Appointment filed within 15 days
- 12.Temporary license: 180 days max
- 13.CE: 24 hours, 3 ethics
- 14.Guaranty pays $300,000 per claim
- 15.Claims overdue after 30 days
- 16.Fire: proof 60, suit 2 years
- 17.HO-3 dwelling open, contents named
- 18.Occurrence = loss date trigger
- 19.Surety guarantees; fidelity insures dishonesty
- 20.Retake wait: one day
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