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CT state law · part 2 of 2
Connecticut All Lines Casualty Adjuster Practice Test: Connecticut law, Part 2
15 more Connecticut law questions for the Connecticut All Lines Casualty Adjuster exam. Every explanation cites the statute or rule it is based on, so you can read the source when a rule surprises you. Start with part 1 on the main Connecticut adjuster page if you have not done it yet.
Subtopics in this part: Auto claim rules, Residual markets and guaranty association, Public adjusters, Motor vehicle physical damage appraisers, Workers compensation, Statutes of limitation.
0 of 15 answered
Auto claim rules · Application
An insurer declares Sam's car a constructive total loss. One approved automobile industry source lists its retail value at $16,400 and a second approved source lists it at $17,200. Under CGS 38a-353, what is the lowest value the insurer may use to calculate the settlement?
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Correct answer: A. $16,800
CGS 38a-353, as amended by Public Act 26-69, requires at least the average of the retail values from two sources: the J.D. Power used car guide (named in place of NADA by that act) or another approved public source, plus a second approved industry source. ($16,400 + $17,200) / 2 = $16,800. By the payment date the insurer must also give the claimant a detailed copy of its calculation and notice that the claimant may contact the Department's Consumer Affairs Division.
On a first call about a collision claim, an adjuster tells the insured that repairs will be delayed and not guaranteed unless the car goes to a shop in the insurer's repair program. Under CGS 38a-354, what is true?
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Correct answer: B. It is prohibited, and estimates must state the right to choose a licensed shop
CGS 38a-354(b) forbids an insurer, agent or adjuster to require an insured to use a specific repairer or to state that choosing a shop outside the insurer's repair program will cause delays or a lack of guarantee for the work. Subsection (c) requires every appraisal or estimate written for an insurer to carry a boldface notice that the owner has the right to choose the licensed repair shop.
Under CGS 38a-355, when an insurer's written estimate to repair a private passenger car uses a replacement exterior sheet metal or plastic part not made by the original manufacturer, what must the insurer do?
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Correct answer: C. Identify each such part and attach a notice printed in at least 10-point type
CGS 38a-355 requires an insurer or repairer preparing a written estimate to clearly identify each major replacement part not made by the original manufacturer, attach a notice in at least 10-point type saying the estimate uses such parts, and give a copy to the person who requested the estimate. A violation by an insurer is treated as an unfair insurance practice under CGS 38a-816.
Liability is reasonably clear on a third-party property damage claim. The claimant's car spends eight days in the body shop, and she borrows her brother's car instead of renting one. Under Connecticut regulation and Bulletin CL-1-07, what does the liability insurer owe for loss of use?
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Correct answer: D. The reasonable value of the lost use, though she rented no car
Bulletin CL-1-07 explains that property damage under Regs. Conn. State Agencies 38a-334-2 includes loss of use, so liability insurers must undertake to pay it, and Reg. 38a-10-2(f) defines loss of use as the reasonable value of being deprived of the vehicle during the time reasonably needed for repair or replacement, whether or not the claimant incurred expenses. Simply offering a rental or discussing loss of use does not satisfy that duty.
Nadia's car has $10,000 of covered collision damage. Her insurer pays $9,000 after her $1,000 deductible and then subrogates against the at-fault driver under CGS 38a-351a. The insurer settles the subrogation claim for $8,000. How much of that recovery goes to Nadia?
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Correct answer: A. $800
CGS 38a-351a requires an insurer that subrogates to include the insured's collision deductible in its demand, unless the insured asks it not to, and to share recoveries with the insured on a proportionate basis. Nadia bore $1,000 of the $10,000 loss, or 10%, so she receives 10% of the $8,000 recovery, which is $800; the insurer keeps $7,200.
Residual markets and guaranty association · Recall
Under CGS 38a-329, the Connecticut Automobile Insurance Assigned Risk Plan must offer private passenger nonfleet liability limits of up to how much?
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Correct answer: B. $250,000/$500,000/$100,000, or a $500,000 single limit
CGS 38a-329(a)(7) requires the assigned risk plan to offer private passenger nonfleet liability coverage of up to $250,000 per person, $500,000 per accident and $100,000 property damage, or a $500,000 single limit. The plan must also offer physical damage coverage, allow producers a $35 service fee on each initial policy, and require a minimum down payment of 25% of the annual premium.
Residual markets and guaranty association · Recall
CGS 38a-328 directs the Commissioner to implement a fire, liability and allied lines underwriting facility (a FAIR plan) under the federal Property Protection and Reinsurance Act of 1968. Which insurers must participate in it?
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Correct answer: C. All insurers licensed here to write any of those lines
CGS 38a-328(b) states that all insurance companies licensed in Connecticut to write any or all of the lines covered by the facility must participate in the program and follow the Commissioner's regulations for it. The facility gives property owners who cannot get coverage in the voluntary market access to fire and allied lines insurance, and liability coverage for one- to three-family and seasonal dwellings.
Residual markets and guaranty association · Challenging
A Connecticut-licensed property and casualty insurer is ordered liquidated with a finding of insolvency in 2027. The Connecticut Insurance Guaranty Association receives timely claims from Connecticut residents: a $700,000 bodily injury liability judgment against an insured, and a lost-wage claim under a workers compensation policy. Under CGS 38a-841, how are they paid?
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Correct answer: A. The liability claim up to $500,000, and the compensation claim in full
For insurers liquidated on or after October 1, 2015, CGS 38a-841(a)(1) caps the association's obligation on a covered claim such as this liability judgment at $500,000, while claims under workers compensation policies are paid in full. The $300,000 cap applied only to insolvencies before October 2007, and Public Act 26-69 removed the $100 deductible effective October 1, 2026. Most claims must be filed within two years of the insolvency.
On Saturday, October 10, 2026, after a fire, Grace signs an employment contract with a licensed Connecticut public adjuster. Under CGS 38a-724(a), what is the latest she can post or deliver a notice canceling the contract?
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Correct answer: D. Midnight on Thursday, October 15, 2026
CGS 38a-724(a) lets the insured cancel by notice posted or delivered no later than midnight of the fourth calendar day after signing, but if the contract is signed on a Friday, Saturday or Sunday the deadline is midnight of the following Thursday. Grace signed on a Saturday, so Thursday, October 15 controls, not Wednesday, October 14. The cancellation right must appear on the contract's first page in 12-point boldface type.
Two days after a house fire, Victor signs a contract with a public adjuster for 10% of the settlement. Nineteen days after the fire, the insurer offers him the full policy limits in writing. Under CGS 38a-726, what fee may the public adjuster collect?
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Correct answer: B. No fee, because the insurer offered full limits within 30 days
CGS 38a-726(a) bars a public adjuster from charging or collecting any fee if, within 30 days of a loss to a structure covered by a fire policy, the insurer offers in writing to pay the full policy limits. In other cases the fee may be based only on settlement proceeds the insured actually receives, collected after receipt, and Regs. Conn. State Agencies 38a-788-8 caps it at 10% of the settlement.
Motor vehicle physical damage appraisers · Application
Ben, a licensed Connecticut motor vehicle physical damage appraiser, cannot agree on a repair price with the shop the owner chose. Under Regs. Conn. State Agencies 38a-790-5, how may he get a competitive estimate from another shop?
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Correct answer: C. Only if that shop's owner or its agent inspects the car in person
Reg. 38a-790-5 forbids an appraiser who cannot agree on price from obtaining a competitive estimate unless the other shop's owner or authorized agent has inspected the vehicle, and it bars estimates obtained through photographs, phone calls or anything other than personal inspection. Reg. 38a-790-6 and CGS 38a-354 bar steering the owner to a specified shop. Appraisers need the separate license required by CGS 38a-790.
An employer receives an injured employee's properly served written notice of claim for compensation for a back injury. Under CGS 31-294c(b), what must the employer or its insurer do to avoid being conclusively presumed to have accepted compensability?
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Correct answer: D. File a contest notice, or start paying, by the 28th day after receipt
CGS 31-294c(b) gives the employer until the 28th day after receiving a written notice of claim to file a notice contesting liability. If it does not, it must begin paying by that day; it may then still contest within one year of receiving the notice. Doing neither makes it conclusively presumed to have accepted the injury. Employees must give notice of claim within one year of the accident.
Andre is totally incapacitated by a work injury. His average weekly wage is $1,200, from which $165 of federal and state income tax and $91.80 of FICA are deducted. Assuming the result is below the state maximum, what weekly benefit does CGS 31-307(a) provide?
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Correct answer: A. $707.40
CGS 31-307(a) pays total incapacity benefits at 75% of average weekly earnings after those earnings are reduced by federal and state taxes and FICA, subject to the maximum weekly rate in CGS 31-309. Net earnings are $1,200 minus $165 minus $91.80, or $943.20, and 75% of that is $707.40. Applying 75% to the gross wage gives $900, and two-thirds of the gross wage gives $800.
On June 1, 2025, Hana is hurt when another driver rear-ends her car, and she knows of her injury that day. Under CGS 52-584, by when must her negligence action for the injury be brought?
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Correct answer: B. By June 1, 2027, two years from the date of the injury
CGS 52-584 requires an action for injury to a person or property caused by negligence to be brought within two years from the date the injury is first sustained or discovered, and never more than three years from the act or omission. Hana knew of her injury on June 1, 2025, so the two-year limit runs to June 1, 2027. The six-year period in CGS 52-576 applies to written contracts.
Under Connecticut's Dram Shop Act, CGS 30-102, a person injured by a customer whom a liquor seller served while intoxicated must give the seller written notice and bring suit within what time limits?
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Correct answer: C. Notice within 120 days of the injury, and suit within one year of the sale
CGS 30-102 requires written notice to the seller within 120 days of the injury, or 180 days if an aggrieved person died or was incapacitated, and an action within one year from the date of the act or omission complained of. Recovery is capped at $250,000 per person and $250,000 in total, and there is no separate negligence claim for serving a customer aged 21 or older.