Basica Insurance – Underwriting Guidelines and Knowledge Test

To your right is the Basica Insurance knowledge test. There are 50 question. You must get a 90% or better to pass. Your Training Manager will receive your results and review those results with you. Best of luck.

Below you’ll find all of the Basica and Express Underwriting Guidelines. Please study them.

Basica

1 / 51

What happens if critical information is missing from the Application?

The policy is issued with a surcharge

The policy may be canceled

The missing information is requested after the policy is issued

The Application is automatically rejected

2 / 51

What happens if critical information is missing from the Application?

The policy is issued with a surcharge

The policy may be canceled

The missing information is requested after the policy is issued

The Application is automatically rejected

3 / 51

Which of the following is considered acceptable proof of insurable interest?

A notarized Bill of Sale

Dealership Purchase Agreement

Registration

All of the above

4 / 51

What is required for a completed Application?

Only the applicant’s signature

Only the vehicle’s VIN number

A handwritten note from the applicant

A paper copy signed by both the agent and the applicant, including completion of rejections and initial sections

5 / 51

How must Applications be submitted?

By mail only

Electronically through www.basicains.com

By fax or email

In person at a Basica office

6 / 51

How is age determined for rating purposes if a driver’s birthday is within 30 days of the policy’s effective date?

The driver’s age is determined as of the renewal date

The driver’s age is determined as of the previous birthday

The driver’s age is determined as of the policy’s expiration date

The driver’s age is determined as of their upcoming birthday

7 / 51

What is required for a spouse to qualify for the married rate?

The spouse must be listed as an excluded driver

The spouse must have a valid driver’s license

The spouse must be the primary driver of the vehicle

The spouse must be listed as an insured driver

8 / 51

How is a married person not living with their spouse classified, unless due to military service?

As a single person

As a non-driver

As a married person with a surcharge

As an excluded driver

9 / 51

Who qualifies as a "married" operator for rating purposes?

Any person in a domestic partnership, regardless of living arrangements

A legally married person living in the same household with their spouse

A widowed person living alone

A divorced person living with a new partner

10 / 51

Who must provide proof of insurable interest?

The Named Insured or Insured Driver (if applicable)

Only the insurance agent

The vehicle’s previous owner

The dealership where the vehicle was purchased

11 / 51

Which of the following is considered acceptable proof of insurable interest?

A properly executed Title

A handwritten note from the Named Insured

A screenshot of the vehicle’s VIN number

A utility bill in the Named Insured’s name

12 / 51

What must every Application be accompanied by?

A copy of the Named Insured’s driver’s license

Sufficient proof of insurable interest (e.g., Title, Registration, Dealership Purchase Agreement, Notarized Bill of Sale)

A letter from the prior insurance company

A vehicle inspection report

13 / 51

What is required if the Named Insured uses a post office box as a mailing address?

No additional information is needed

The physical garaging address of each vehicle, including zip code, must be provided

The post office box must be in the same state as the garaging address

The vehicle must be garaged in a different state

14 / 51

What must the garaging address of the vehicle match?

The mailing address of the Named Insured

The address of the insurance agency

The address of the vehicle’s registered owner

The rating state of the policy and the residence address of the Named Insured

15 / 51

Which of the following would make a driver unacceptable?

A student attending school in Nevada

A driver with a valid U.S. driver’s license

A former insured who has an unpaid balance due unless the balance is paid

A driver with a valid U.S. driver’s license

16 / 51

What happens if a driver is deemed an “Unacceptable Risk”?

The policy is renewed with no changes

The driver is excluded from coverage, but the policy remains active

An “Unacceptable Risk” Surcharge equal to 100% of the premium is applied, and the policy is canceled

The driver is allowed to remain on the policy with no surcharge

17 / 51

Which of the following drivers is considered unacceptable?

A driver who resides in Nevada for 11 months per year

A driver with a specific, in-state garaging address

A driver who is a former insured with no unpaid balance

A driver who lives or works in Mexico

18 / 51

How many At-Fault accidents in the last 18 months make a driver unacceptable?

1 or more

2 or more

3 or more

19 / 51

Which of the following license types is acceptable for a driver?

A suspended U.S. license with an SR-22 filing

A permanently revoked license

A driver with no license or ID

A driver with 2 DUIs in the last 36 months

20 / 51

What is the maximum number of points a driver can have in the last 36 months to be acceptable for new business?

10 points

16 points

20 points

No point limit applies

21 / 51

Which of the following drivers is considered unacceptable?

A driver with 8 points in the last 12 months

A driver with 1 DUI in the last 12 months

A driver with a suspended U.S. license seeking to regain it through an SR-22 filing

A driver with a valid Matricula Consular

22 / 51

When can a driver exclusion be requested?

Only at the time of policy issuance

Only during the renewal period

Only with written approval from the excluded driver

At any point during the life of the policy

23 / 51

Who cannot be listed as an Excluded Driver?

Any individual under the age of 25

A spouse of the Named Insured

A driver with a DUI

The registered owner of the vehicle

24 / 51

Who can sign the Named Driver Exclusion Election form to exclude a driver?

The Named Insured

Any insured driver on the policy

The excluded driver themselves

The registered owner of the vehicle

25 / 51

How many policies can be issued to individuals residing in the same household?

Two policies, without any restrictions

Only one policy, except with prior underwriting approval for family members

As many policies as needed

No policies can be issued to individuals in the same household

26 / 51

Who can be listed as an Additional Insured on a policy?

Automobile leasing companies

Family members not residing in the same household

Only the Named Insured

Any business entity

27 / 51

What happens if a vehicle is titled to two related persons?

Both must be listed as Named Insureds

The policy will be declined

Only one may be listed as the Named Insured, and the other as an Insured Driver

Both must be listed as Excluded Drivers

28 / 51

What is required for a spouse to be listed as an Excluded Driver?

No documentation is required

The spouse must not own a vehicle

The spouse must have a clean driving record

Documentation of a legal separation must be presented

29 / 51

In whose name can a policy be written?

Only in the name of a business

Only in the name of an individual

In the names of two or more individuals

In the name of a leasing company only

30 / 51

What is the Endorsement Fee, and when is it applied?

$5.00 applied to all endorsements

$18.00 applied to all endorsements

$10.00 applied to each insured-initiated endorsement

No fee is charged for endorsements

31 / 51

What is the Cancellation Fee, and when is it charged?

$10.00 charged for all cancellations

$20.00 charged if the Named Insured requests mid-term cancellation

$25.00, charged for all cancellations

No fee is charged for cancellations

32 / 51

What is the Financial Responsibility Fee (SR-22), and when is it applied?

$25.00 applied each time an SR-22 is required to be reported

$10.00 applied annually for all drivers

$18.00 applied only for new policies

No fee is charged for SR-22 filings

33 / 51

What is the Non-Sufficient Funds (NSF) Fee, and what happens if payment is replaced?

$25.00, and Reinstatement Fee is charged if payment is replaced

$10.00,and the policy is automatically reinstated

$20.00 Reinstatement Fee is charged if payment is replaced the policy is canceled permanently

No fee is charged for NSF payments

34 / 51

What is the Reinstatement Fee, and when is it charged?

$10.00 charged when a policy is renewed

$18.00 charged when a policy is canceled

$25.00 charged when a canceled policy is reinstated

No fee is charged for reinstatement

35 / 51

What is the Invoice Fee (Installment Fee), and when is it applied?

$10.00 applied annually

$18.00 applied to each monthly invoice (Installment)

$25.00 applied to each quarterly invoice (Installment)

No fee is charged for invoices (Installment)

36 / 51

What is the Policy Fee, and when is it charged?

$10.00 charged on renewals only

$18.00 charged on all new business with a policy number assigned

$25.00 charged on all new business and renewals

No fee is charged for new business

37 / 51

What is required for a vehicle to be eligible for full coverage?

The vehicle must have pre-existing damage

The vehicle must be older than 10 years

The vehicle must have a valid foreign license plate

The vehicle must be in safe driving condition

38 / 51

Does Basica accept pre-existing damage for full coverage?

No, pre-existing damage is not accepted for full coverage

Yes, but only if the damage is minor

Yes, but only if the client has prior insurance

Yes, but only if the client has a clean driving record

39 / 51

After how many days of being late will a policy be cancelled?

5 days after the due date

The policy expires at 12:01 am on the date payment is due

10 days after the due date

15 days after the due date

40 / 51

Does Basica have a grace period for late payments?

Yes, a 10-day grace period

No, there is no grace period

Yes, a 5-day grace period

Yes, but only for clients with prior insurance

41 / 51

What is the reinstatement process without a lapse, and how many days are allowed?

Up to 15 days, with a statement of no loss and vehicle inspection

Up to 60 days, with a statement of no loss only

Up to 30 days, with a statement of no loss and vehicle inspection (photos)

Reinstatement is not allowed under any circumstances

42 / 51

Will Basica accept POP with a lapse from a prior company?

No, lapses are not accepted under any circumstances

Yes, but only if the lapse is less than 15 days

Yes, but only if the client has a DUI older than 18 months

Yes, up to a 30-day lapse is accepted

43 / 51

What documents are acceptable as proof of prior insurance?

A screenshot of the policy showing dates of coverage, drivers, vehicles, coverages, and claims section

Only a declaration page from the prior policy

Only a letter from the prior insurance company

Only a billing statement from the prior insurance company

44 / 51

Does Basica offer an Agency Internal Transfer Discount?

No, internal transfer discounts are not offered

Yes, but only up to 10%

Yes, up to 20%

Yes, but only for clients with a DUI older than 18 months

45 / 51

Does Basica offer a Homeowners discount?

Yes, a 10% discount

No, homeowner discounts are not offered

Yes, but only for clients with prior insurance

Yes, but only for clients with a clean driving record

46 / 51

Clients with Matricula must present at least 19 months of POP without an AF accident from a prior carrier.

Yes, this is a strict requirement

No.

Only if the client has a DUI

Only if the client is applying for full coverage

47 / 51

Does Basica surcharge for excluded drivers?

Yes, a 10% surcharge applies

Only if the excluded driver has a DUI

No, excluded driver surcharges do not apply

Yes, a 20% surcharge applies

48 / 51

What are the acceptable forms of identification for Basica?

Only valid state licenses

Valid state licenses, state IDs, permits, foreign licenses, and Matriculas

Only foreign licenses and Matriculas

Only valid state licenses and permits

49 / 51

Does Basica offer Non-Owners policies?

Yes, but only for clients with a clean driving record

Yes, but only for clients with prior insurance

No, non-owners policies are not offered

Yes, but only for clients with a DUI older than 18 months

50 / 51

Will Basica accept clients with a DUI?

Yes, but only if the DUI is older than 12 months

Yes, but only if the DUI is older than 18 months

No, Basica does not accept clients with any DUI history

Yes, but only if the client has an SR-22

51 / 51

How far back can a policy be backdated, and what are the requirements?

15 days with vehicle inspection, 30 days with underwriting approval

30 days with vehicle inspection, 60 days with underwriting approval

60 days with vehicle inspection, 90 days with underwriting approval

No backdating allowed

Your score is

Basica Complete Underwriting Guidelines (Click Here)

Basica – Auto Insurance Underwriting and Quoting Guidelines

Types of Polices and Coverages Sold: Liability Comp/Collision SR-22 Non Owners Med Pay Uninsured/Underinsured Car Rental Reimbursement Due to Accident Other: Accident death, Rental, & Towing

Supporting Documents Required:

- Identifications: State Driver’s License, Permits, Suspended license, International License, International Passports, Matriculas.
- Proof Of Vehicle Ownership: Valid Registration, Title with owner name, Buyers Bill or Placard
- If applicable: Proof of Homeowner, and Proof of Prior (POP) If no hit is received on current carrier Proof of 6 months previous continuous coverage is required. Multiple policies can be submitted to reach the 6-month minimum
Supporting Documents NOT Accepted: ID, Moving Permits, Car Notes, Smog Checks

New Policy Start Up Guidelines:

Clients must have their DL ready and Proof of vehicle ownership for Auto policies. If vehicle policy includes Comp & Collision, vehicles pictures MUST be taken. NOTE: Basica does NOT take vehicles with any pre-existing damage that need Comp & Collision on their policy.
All vehicle drivers and Co-signers must be added as drivers on the policy.
Policy purchase can be by cash, money order, or debit/credit. If policy is purchase in office, a $25 cash only in office fee will be applied. Application signatures will be sign with Xodo Sign through via E-mail or in office.

Endorsement Guidelines:

All endorsements must be established by the main insured(s) of the policy. It can be done over the phone via E-mail or in office. Signatures must be obtain under Xodo Sign. If in office, a $25 cash only in office fee will be applied when adding drivers, vehicles, or Sr22s.
Supporting Documents are required.

If a Minimum Endorsement Payment Requirement is requested by Basica, it must be paid by money order or debit/credit or cash.

Renewal Guidelines:

Renewals will be applied as a regular monthly payment with a debit/credit or money order. Cash not accepted. If policy is set up with EFT (Automatic Credit/Debit or, bank account), policy will renew.

A $25 NSF fee will be applied if the EFT payment declines. Policy will also have a lapse.

Payment Guidelines:

Payment must be processed by a debit/credit or money order. Cash not accepted. If policy is set up with EFT (Automatic Credit/Debit or, bank account), payment will be drafted automatically.

A $25 NSF fee will be applied if the EFT payment declines.

Automated removal of auto pay occurs with the following:

Credit card payment is declined;
Credit card token registration is declined at endorsement;
NSF for auto pay by checking/savings account for certain return reasons;
Credit card expiration if updated card information is not received by the set action date.

A customer would be able to go back on Auto Pay if they don’t exceed these threshold limits for NSF payments:

Maximum of two NSF payments returned within a 6-month period.
Maximum of three NSF payments returned within a 12-month period.

Reinstatement Without a Lapse Guidelines:

Underwriting Approveal Needed. Reinstatement: Exception only. Car pictures will be required for all vehicles listed on the policy (even if liability only) Reinstatement exceptions cannot be processed 30 or more calendar days after the policy cancellation date. Verbal No Loss and Express No Loss will be required. A reinstatement without a lapse in coverage is permitted by Us only if:

The policy is in good standing with all prior amounts due, including, but limited to, a Reinstatement Fee, collected at time of reinstatement;

The policy is not already set up for nonrenewal;

There have been no At-Fault claims on the policy since policy inception (for policies cancelled for non-payment in the first term) or since prior renewal;

There are no unacceptable risk/vehicles on the policy;

Payment is in the full amount of all premium, including any applicable Fees (See Rule 10.1); and

A No Loss Statement is received that is executed and signed by the Named Insured for the period of time between the actual cancellation date and the signing of the No Loss Statement.

Reinstatement without a Lapse Guidelines: 30 Days

Backdate Policy Guidelines:

Fee Schedule:

Basica only sells Monthly Policies.

Paid in full.

Policy Fee: $18.00

Invoice Fee: $18.00

Credit or Debit Card Payment Fee: $12.00

Endorsement Fee: $10.00

Cancellation Fee: $20.00

Reinstatement Fee: $25.00

Non-SufficientFunds Fee: $25.00

SR-22 Fee: $25.00

Reinstatement: When a policy has been cancelled for any reason and is subsequently reinstated, a Reinstatement
Fee will be charged.

EFT: Available for bank account withdrawal only. (NSF Fee $25.00)

Agent Support Number: (866) 603-2664 Agent Support Email: Underwriting: support@basicains.com

Express Underwriting Review and Approval Procedure

Below is how Express Underwriting will inspect your National General Policy to make sure it was completed correctly and approve it for commission payment.

Accepts: Driver’s license, Identifications, Matriculas, Mexico driver’s license, and USA Permit (No Europe, Asia, No passport or Elector) Are able to exclude the spouse as long a the spouse signs the exclusion form. Need proof of legal ownership, title, Registration, and active registrations under the name insured.

Applications: Upload application, Driver’s license, ownership proof, vehicle photos (if there is comprehensive and collision), and discount documents in the company, and upload them in Agency Matrix, with support documents and photos if needed, update DMV, detail notes.

Backdate Application: Yes, backdates are accepted

Endorsement: Policy documents and photos (comprehensive and collision) are required before any endorsement, updated Department of Motor Vehicle if adding a vehicle

No Loss: Upload no loss, and photos, (double check if there are no old pictures, already in the Agency Matrix, or in the company) chat with the company, and detail notes Agency Matrix.

A 75-year-old: Customer needs a medical Statement. Upload to company, chat with company, and notes in Agency Matrix, will be at the time at the blinder.

Manual Endo: Upload to company, and to the Agency Matrix, add notes, and follow up.

Cancellations: Upload to the company, in Agency Matrix, and email to the company, add notes and follow up.