Wyoming Property and Casualty Adjuster Practice Test: Wyoming law, Part 2

Correct answer: A. 45 days after receiving the claim and supporting bills

Section 26-15-124(b) requires property and casualty claims to be rejected or accepted and paid by the insurer, or its agent designated to receive claims, within 45 days after receipt of the claim and supporting bills. Subsection (a) sets a 45-day period, measured from proofs of loss, for life, accident and health claims. Subsection (c) allows attorney's fees and 10% interest when a refusal to pay is unreasonable.

Reference: W.S. 26-15-124(a) and (b)

Correct answer: C. $3,600

Section 26-15-124(c) lets the court, when an insurer's refusal to pay the full amount of a covered loss is unreasonable or without cause, award a reasonable attorney's fee and interest at 10% per year. One year at 10% on $36,000 is $3,600. The other figures reflect 5%, 7.5% and 18% rates, none of which the statute uses.

Reference: W.S. 26-15-124(c)

Correct answer: A. 90 days from its effective date

A binder is valid until the policy is issued or for 90 days from its effective date, whichever is shorter (26-15-119(b)). If the policy is not issued, the binder may be extended beyond 90 days only with the commissioner's written approval or as the commissioner's rules allow. Binders may be oral or written and include the usual terms of the policy they bind; the section does not apply to life or disability insurance.

Reference: W.S. 26-15-119

Correct answer: C. 45 days, stating the precise reason for cancellation

After the first 60 days, 26-35-202 allows midterm cancellation only for nonpayment, material misrepresentation, a substantial unforeseeable change in risk, or substantial breach of duties, conditions or warranties. Written notice stating the precise reason must be given at least 10 days ahead for nonpayment and at least 45 days ahead for the other grounds except misrepresentation. Nonrenewal also requires 45 days' notice with the precise reason under 26-35-203.

Reference: W.S. 26-35-202; W.S. 26-35-203

Correct answer: D. The insurer may not nonrenew because of that one hail claim

Section 26-23-107 bars nonrenewing a homeowner's policy because of a single claim within a three-year period arising from natural causes, and bars cancelling during the term because of any natural-cause claim. A natural cause is an act occasioned exclusively by the violence of nature, with no human agency contributing, and hail qualifies. The commissioner may order reinstatement with no lapse in coverage.

Reference: W.S. 26-23-107

Correct answer: B. Adjust the claim as if the full roof has been damaged

Chapter 26, Section 3(b), in the version effective July 31, 2025, provides that when the existing roofing product is obsolete and only one or more facets are damaged, the full roof is construed as damaged and adjusted on that basis. The exception in Section 4 applies only if the insured consents in writing in advance to a different product after full disclosure of effects on value, insurability and warranties. If every facet is damaged, the entire roof is replaced.

Reference: Wyoming Rule Chapter 26, Sections 2 through 4

Correct answer: C. $10,400

Chapter 26, Section 3(c)(ii) bars insurers from depreciating the labor cost of tear-off and installation when adjusting a roof claim. Only the materials are depreciated: $9,000 x 0.60 = $5,400. Add the full $6,000 of labor for $11,400, then subtract the $1,000 deductible to get $10,400. Depreciating the whole $15,000 would wrongly produce $8,000, and $11,400 ignores the deductible.

Reference: Wyoming Rule Chapter 26, Section 3(c)(ii)

Correct answer: D. Non-OEM parts may be used only with Jamal's prior written consent

Chapter 19, Section 5 bars an insurer from requiring non-OEM parts, or accepting an estimate or authorizing repairs, unless the consumer is told he need not accept them and consents in writing before repairs, and bars making the consumer pay the price difference for choosing OEM parts. Non-OEM parts must also equal the originals in fit and performance, carry permanent identification and be disclosed on the estimate in at least 10-point type.

Reference: Wyoming Rule Chapter 19, Sections 3 through 6

Correct answer: A. $70,000

W.S. 31-9-405(b) and 31-9-102(a)(xi) set minimums of $25,000 per person and $50,000 per accident for bodily injury and $20,000 for property damage. The first injury is capped at $25,000, so injuries total $25,000 + $15,000 + $12,000 = $52,000, which the $50,000 per-accident limit cuts to $50,000. Property damage pays $20,000, for $70,000 in all; Gabe is personally responsible for the rest.

Reference: W.S. 31-9-405(b); W.S. 31-9-102(a)(xi)

Correct answer: B. UM is not required at renewal unless she requests it in writing

Section 31-10-101 requires auto liability policies on vehicles registered or principally garaged in Wyoming to include UM coverage at the financial responsibility limits, but the named insured may reject it. If she rejected it on a policy previously issued by the same insurer, the coverage need not be provided in a renewal unless she requests it in writing. Under 31-10-102, a vehicle whose liability insurer is insolvent also counts as uninsured.

Reference: W.S. 31-10-101; W.S. 31-10-102

Correct answer: D. A reporting deadline that adds 'or as soon thereafter as is practicable'

Chapter 23, Section 4 bars limiting hit-and-run coverage to injuries from actual physical contact, and says a deadline to report a hit-and-run to police or the DMV must add 'or as soon thereafter as is practicable under the circumstances.' Section 6 bars requiring the insurer's written consent before the insured sues an uninsured motorist, and Section 7 bars mandatory arbitration clauses. Section 3 also bars reducing UM benefits by workers' compensation payments.

Reference: Wyoming Rule Chapter 23, Sections 3, 4, 6 and 7

Correct answer: B. Her possible eligibility, in or with the nonrenewal notice itself

Chapter 14, Section 2 requires an insurer that cancels or nonrenews automobile liability coverage to notify the policyholder of possible eligibility for coverage through the assigned risk plan or Wyoming Automobile Insurance Plan, and the notice must accompany or be included in the cancellation or nonrenewal notice. The requirement does not apply to a cancellation or nonrenewal for nonpayment of premium.

Reference: Wyoming Rule Chapter 14, Section 2

Correct answer: A. 3 years, by certificate of insurance, bond or $25,000 deposit

After a conviction for failing to maintain liability coverage, W.S. 31-4-103(c) requires proof of financial responsibility for three years, and failing to file it within 30 days of notice suspends the driver's license. Under 31-9-402, proof may be a certificate of insurance, a surety bond or a certificate of a $25,000 deposit of cash or securities (31-9-409). The uninsured driving offense itself carries a fine of $500 to $1,500.

Reference: W.S. 31-4-103; W.S. 31-9-401(e); W.S. 31-9-402; W.S. 31-9-409

Correct answer: B. $301,200

Under 26-31-106(c), the association pays no more than $300,000 for each covered claim other than workers' compensation and unearned premium claims, up to $7,500 per policy for return of unearned premium, and workers' compensation claims in full. Lena receives $300,000 on the fire loss plus her full $1,200 of unearned premium, or $301,200. Claims must be filed by the earlier of the court's deadline or 25 months after the liquidation order.

Reference: W.S. 26-31-106(c); W.S. 26-31-111(c)

Correct answer: B. None, as claims adjustment is an excepted insurance function

Section 17(a) generally requires an authorization before a licensee discloses nonpublic personal health information. Section 17(b) requires none for insurance functions performed by or on behalf of the licensee, including claims administration, claims adjustment and management, and fraud investigation. The 30-day opt-out opportunity in Section 11 applies to sharing nonpublic personal financial information with nonaffiliated third parties, not to these functions.

Reference: Wyoming Rule Chapter 54, Sections 11 and 17