Wyoming Casualty Insurance Quiz

What is the minimum liability limit per person required for proof of financial responsibility in Wyoming?

• $100,000

• $25,000

• $10,000

• $50,000

Answer explanation

In Wyoming, the minimum liability limit per person for proof of financial responsibility is $25,000. This means drivers must have at least this amount to cover injuries to others in an accident.

Which document can be filed to show proof of financial responsibility?

• Vehicle registration

• Insurance policy

• Driver's license

• SR-22 certificate

Answer explanation

The SR-22 certificate is a document specifically used to prove financial responsibility, often required for high-risk drivers. It verifies that a driver has the minimum required insurance coverage.

For how many years must proof of financial responsibility be maintained after it is required?

• One year

• Two years

• Three years

• Five years

Answer explanation

Proof of financial responsibility must be maintained for three years after it is required. This is a standard duration set by many jurisdictions to ensure compliance and accountability.

Under what condition can an auto liability policy be canceled mid-term?

• Policyholder's request

• Nonpayment of premium

• Change of address

• Purchase of a new vehicle

Answer explanation

An auto liability policy can be canceled mid-term primarily due to nonpayment of premium. This condition allows insurers to terminate coverage if the policyholder fails to pay their premiums on time.

What must nonresidents do if their driving privileges are suspended in Wyoming?

• Leave the state

• File proof of financial responsibility

• Pay a fine

• Attend a court hearing

Answer explanation

Nonresidents with suspended driving privileges in Wyoming must file proof of financial responsibility to reinstate their driving rights, rather than leaving the state, paying a fine, or attending a court hearing.

How many days' notice must be given for cancellation due to nonpayment?

• 15 days

• 10 days

• 20 days

• 5 days

Answer explanation

The correct answer is 10 days, as this is the standard notice period required for cancellation due to nonpayment. This allows the party sufficient time to address the payment issue before cancellation occurs.

What are the minimum UM/UIM bodily injury coverage limits required in Wyoming?

• $100,000/$200,000

• $25,000/$50,000

• $10,000/$20,000

• $50,000/$100,000

Answer explanation

In Wyoming, the minimum required UM/UIM bodily injury coverage limits are $25,000 per person and $50,000 per accident. This means that the correct answer is $25,000/$50,000.

What is the purpose of the Wyoming Automobile Insurance Plan?

• To offer free insurance to low-income drivers

• To assign drivers to insurers who cannot obtain coverage voluntarily

• To provide discounts on insurance

• To regulate insurance premiums

Answer explanation

The Wyoming Automobile Insurance Plan is designed to assign drivers who are unable to obtain insurance coverage voluntarily to insurers, ensuring that all drivers have access to necessary insurance.

What happens if an SR-22 lapses and is not renewed?

• The driver receives a warning

• The driver must retake the driving test

• The driver's license remains suspended

• The driver is fined immediately

Answer explanation

If an SR-22 lapses and is not renewed, the driver's license remains suspended. This is because the SR-22 is a requirement for maintaining driving privileges after certain violations.

What is the penalty for driving without proof of financial responsibility?

• License suspension

• Misdemeanor penalties and fines

• Community service

• Mandatory driving course

Answer explanation

Driving without proof of financial responsibility typically results in misdemeanor penalties and fines, making this the correct answer. Other options like license suspension or community service may apply in different contexts.