CALIFORNIA PERSONAL LINES BROKER TEST EXAM
QUESTIONS AND CORRECT ANSWERS
A-1. cInsurance cis ca ccontract cwhereby cone cundertakes cto cindemnify canother cagainst: c- cCORRECT cANS✔✔Damage
A-2. cA cperil cis: c- cCORRECT cANS✔✔The cactual ccause cof ca closs.
A-3. cThe cuncertainty cor cchance cof ca closs coccurring cis cknown cas: c- cCORRECT cANS✔✔Risk
A-4. cWhich care cthe cmain ctypes cof crisks? c- cCORRECT cANS✔✔Pure cand cSpeculative
A-5. cA chazard cis cbest cdefined cas: c- cCORRECT cANS✔✔Anything cthat cincreases cthe cchance cof closs cor cseverity cof closs cdue
cto ca cperil.
A-6. cA chazard cthat cdeals cwith ca cperson`s cmental cattitude, cbehavior cand chabits cis can cexample cof: c- cCORRECT cANS✔✔A
cMoral chazard.
A-7. cThe claw cof clarge cnumbers cis ca cprincipal cthat cbasically csays: c- cCORRECT cANS✔✔The clarger cthe camount cof
cinformation cgathered, cthe cmore creliable cthat cinformation cwill cbe.
A-8. cThe cterm closs cexposure crefers cto: c- cCORRECT cANS✔✔The cpossibility cof ca closs.
A-9. cThe cdegree cof closs ca cperson/organization cfaces cfrom csuits cbrought cby ca cthird cparty crefers cto: c- cCORRECT
cANS✔✔Liability closs cexposure.
A-10. cWhich cof cthe cfollowing cis cNOT crequired cfor ca crisk cto cbe cideally cinsurable? c
cThe closs cmust cbe can caccident.
cThe closs cmust cbe cdefinite cand cmeasurable.
cThe closs cmust coccur con cthe cinsured`s cproperty.
cThe closs cmust ccreate ceconomic chardship. c- cCORRECT cANS✔✔The closs cmust coccur con cthe cinsured's cproperty.
A-11. cAny ccontingent cor cunknown cevent, cwhether cpast cor cfuture, cwhich cmay cdamnify ca cperson chaving can cinsurable cinterest
cor ccreate ca cliability cagainst chim/her, cmay cbe cinsured cagainst. cThe cmore cunpredictable ca closs cbecomes: c- cCORRECT
cANS✔✔The cmore cinsurable cit cbecomes.
A-12. cRestoring cthe cinsured cback cto cthe ccondition che cor cshe cwas cin cbefore cthe closs coccurred cis cknown cas: c- cCORRECT
cANS✔✔Indemnification
A-13. cThe cprocess cof creviewing capplications cfor cinsurance cand cthe cinformation con cthe capplication cis: c- cCORRECT
cANS✔✔Underwriting
A-14. cWhich cof cthe cfollowing cis cNOT ca cknown cprivate cinsurer?
cReciprocal cInsurance cExchanges
cMutual cInsurance cCompanies
cBond cInsurance cCompanies
cStock cInsurance cCompanies c- cCORRECT cANS✔✔Bond cInsurance ccompanies care cnot cconsidered cinsurers.
A-15. cBob cis cthinking cabout cobtaining cinsurance cbecause che cjust cfound cout che cneeds cextensive csurgery cthat cwill crequire
cseveral cdays cin cthe chospital. cThis csituation cof cwaiting cuntil cthe clast cminute cto cobtain cinsurance cis cknown cas: c- cCORRECT
cANS✔✔Adverse cselection
A-16. cLoss ccontrol crefers cto: c- cCORRECT cANS✔✔Taking cthe cnecessary cprecautions cthat cwill creduce cthe crisk cof ca closs.
A-17. cWhich cof cthe cfollowing cis cthe camount cof cmoney cthe cinsured cpays cbefore cthe cinsurer cpays cfor cthe crest cof cthe cclaim?
c- cCORRECT cANS✔✔Deductible
A-18. cWhat cis creinsurance? c- cCORRECT cANS✔✔Reinsurance cis cthe cprocess cwhereby cthe cinsurer ctransfers call cor cpart cof
cthe crisk cto canother ccompany.
,A-19. cWhich cof cthe cfollowing cis cdefined cas c`an cagreement cbetween ctwo cor cmore cparties cenforceable cby claw?` c- cCORRECT
cANS✔✔A ccontract.
A-20. cWhat care cthe ctwo ctypes cof ctorts? c- cCORRECT cANS✔✔Intentional cand cUnintentional.
A-21. cWhat cis cthe cbinding cforce cof ca ccontract? c- cCORRECT cANS✔✔Consideration
A-22. cWhat cis cfraud? c- cCORRECT cANS✔✔When cone cparty cintentionally cgives cthe cother cparty cfalse cinformation cin corder cto
cbenefit cfrom cthe cunlawful cgain.
A-23. cWhen ca cright cor cprivilege chas cbeen cgiven cup, ca cparty ccannot creassert cthat cright cor cprivilege. cThe cprocess cof
cpreventing cthe cparty cfrom creasserting cthat cright cor cprivilege cis cknown cas: c- cCORRECT cANS✔✔Estoppel
A-24. cEither cparty cmay crescind ca ccontract cfor cwhat creasons? c- cCORRECT cANS✔✔Once csigned ca ccontract ccan cnever cbe
crescinded.
A-25. cExamples cof ctort claw cinclude call cof cthe cfollowing cEXCEPT:
cLibel cand cslander
cBodily cinjury
cPersonal cinjury
cBreach cof ccontract c- cCORRECT cANS✔✔Breach cof ccontract.
A-26. cSubstitution cof ca csmall ccertain closs cfor ca clarge cuncertain closs cis: c- cCORRECT cANS✔✔Insurance
A-27. cThe cstate cof cbeing csubject cto ca closs cis cconsidered: c- cCORRECT cANS✔✔Exposure
A-28. cPerformance cdepends cupon can cuncertain cfuture cevent cis cthe cfeature: c- cCORRECT cANS✔✔Aleatory
A-29. cType cof closs cexposure cpertaining cto cland cand cstructures cattached cto cit cis: c- cCORRECT cANS✔✔Property closs
cexposure.
A-30. cWhich cof cthe cfollowing cis can cexample cof can cadverse cunderwriting cdecision? c
cCharging ca chigher crate c
cRejecting cthe crisk
cIssuing cwith climitations
cAll cof cthese care cexamples c- cCORRECT cANS✔✔All care cexamples.
A-31. cWhich cof cthe cfollowing cis cnot ca cclass cof cinsurance? c
cCasualty
cFire
cMarine
cAuto c- cCORRECT cANS✔✔Casualty cis cnot ca cclass cof cinsurance.
A-32. cPunishment cfor ctwisting cor cmisrepresentation cwould cbe: c- cCORRECT cANS✔✔$25,000 cfine cor c1 cyear cin cjail.
A-33. cA cbeautician cstating cthat cthis cconditioner cfixes cbadly cdamaged chair cis ca: c- cCORRECT cANS✔✔Implied cwarranty.
A-34. cMateriality cis cdetermined cby cthe cdisadvantage cplaced con cthe cother cparty cand c- cCORRECT cANS✔✔the cinfluence cof
cthe cfacts, cnot cby cthe cevent.
A-35. cWhen can cinsured crejects cuninsured cmotorist cin cwriting cthis cis cconsidered: c- cCORRECT cANS✔✔A cwaiver.
B-1. cIn cwhich cof cthe cfollowing cmarketing cdistribution csystems cdoes cthe cagent crepresent cmore cthan cone cinsurer cand cmore
cthan cone ccompany? c
cDirect cmailing csystem
cDirect cwriting csystem
cExclusive cagency
cIndependent cagency c- cCORRECT cANS✔✔An cindependent cagency
B-2. cWhich cof cthe cfollowing cis ca cresponsibility cof cthe cinsured cin can cinsurance ccontract?
cTo ccomplete cthe capplication.
cGive ctrue cstatements cand cinformation con cthe capplication.
cSend cthe capplication cto cthe cunderwriting cdepartment.
cFully cexplain cthe cpolicy cto cthe cclient. c- cCORRECT cANS✔✔Give ctrue cstatements cand cinformation con cthe capplication.
B-3. cWhich cof cthe cfollowing cis cNOT ca ctype cof cauthority cgiven cto cagents?
cExpress cauthority
cImplied cauthority
cCustomary cauthority
cApparent cauthority c- cCORRECT cANS✔✔Customary cauthority. cThere cis cno csuch cthing.
B-4. cIn ca clegal crelationship, cwhich cauthority cdoes ca cprincipal c(company) cgive cthe cagent cin cwriting? c- cCORRECT
cANS✔✔Express cwarranty.
, B-5. cWhich cof cthe cfollowing cis cNOT ca csource cof cinformation can cunderwriter cmight cuse cto cinvestigate can capplication cin corder
cto capprove cor creject cit? c
cMedical cInformation cBureau
cDepartment cof cIndustrial cRelations
cDepartment cof cMotor cVehicles
cFinancial cReports c- cCORRECT cANS✔✔Department cof cIndustrial cRelations
B-6. cA cbroker ccan ctransact call cof cthe cfollowing cEXCEPT:
cLife, chealth, cand cdisability cinsurance
cProperty cinsurance
cCasualty cinsurance
cPersonal cLines c- cCORRECT cANS✔✔Life, chealth, cand cdisability cinsurance.
B-7. cWhich cof cthe cfollowing cis cNOT can caction ca cperson cperforms cwhen ctransacting cinsurance?
cCalling can cinsurer cfor ca cprice cquote
cSolicitation cof cinsurance
cThe cactual cexecution cof ca ccontract
cAny ctransactions cthat clater cresult cfrom cthe coperation cof cthe ccontract c- cCORRECT cANS✔✔Calling can cinsurer cfor ca cprice
cquote.
B-8. cA cperson clicensed cas ca cbroker/agent cshall cbe cdeemed cto cbe:
cresponsible cfor cdeciding cif can capplication cshould cbe capproved cor crejected
cacting cas can cinsurance cagent cin cthe ctransaction cof cinsurance cplaced cwith cthose cfor cwhom ca cnotice cof cappointment chas
cbeen cfiled cwith cthe cCommissioner
cinvolved cin cthe cbusiness cof cfinancing cthe cpurchase cof creal cestate
cacting cwith cthe csame cauthority cgranted ca cmanaging cgeneral cagent c- cCORRECT cANS✔✔Acting cas can cinsurance cagent cin
cthe ctransaction cof cinsurance cplaced cwith cthose cfor cwhom ca cnotice cof cappointment chas cbeen cfiled cwith cthe cCommissioner.
B-9. cWhich cof cthe cfollowing cis cnot ctrue cabout cthe crelationship cbetween can cagent cand ca csolicitor?
cAn cagent crepresents cthe ccompany, cwhereas cthe csolicitor cis can cassistant cto can cagent cand chas cno cbinding cauthority.
cA csolicitor ccannot cbe cemployed cby cmore cthan cone cfire cand ccasualty cbroker/agent cat cthe csame ctime.
cAn cagent cor cbroker ccannot ctransact cas ca csolicitor, cbut ca csolicitor ccan ctransact cas ca cbroker cor cagent.
cA csolicitor cmay cgive cpremium cquotes cover cthe cphone, cjust clike can cagent. c- cCORRECT cANS✔✔An cagent cor cbroker ccannot
ctransact cas ca csolicitor, cbut ca csolicitor ccan ctransact cas ca cbroker cor cagent.
B-10. cThe capplication cis cthe cdocument cthat: c- cCORRECT cANS✔✔States cthe cname cof cthe cinsured, cthe cpremium, cand cother
cfacts cthat chelp cthe cinsurer cdecide cwhether cto caccept cor creject cit.
B-11. cIf can cagent cgives cincorrect cadvice cor cunknowingly cprovides cincorrect cinformation cto cthe cclient, cwhich cof cthe cfollowing
cliability cinsurance cpolicies cfor cnonmedical cprofessionals cis cavailable cto cpay cfor closses cor cdefend clawsuits cthat cmight cbe
cfiled cagainst chim? c
cLiability cinsurance
cErrors cand cOmissions
cMedical cInsurance
cNonadmitted c- cCORRECT cANS✔✔Errors cand cOmissions.
B-12. cErrors cand comissions cis ca ctype cof cliability cinsurance: c- cCORRECT cANS✔✔That cagents cuse cto cprotect cthemselves cif
cthey cgive cincorrect cadvice cor cinformation cto ca cclient.
B-13. cThe cfollowing cacts care cunlawful cand care cmisdemeanors cin cCalifornia cexcept cwhen cperformed cby ca csurplus clines
cbroker cEXCEPT: c
cIn cany cmanner, cadvertising cfor ca cnonadmitted cinsurer cin cthis cstate.
cIn cany cmanner, cadvertising cfor can cadmitted cinsurer cin cthis cstate.
cIn cany cother cmanner, caiding ca cnonadmitted cinsurer cto ctransact cinsurance cbusiness cin cthis cstate.
cActing cas cagent cfor ca cnonadmitted cinsurer cin cthe ctransaction cof cinsurance cbusiness cin cthis cstate. c- cCORRECT cANS✔✔In
cany cmanner, cadvertising cfor can cadmitted cinsurer cin cthis cstate.
B-14. cWhich cof cthe cfollowing cstatements cabout cinsurance cin cconnection cwith csales cor cloans cis cTRUE?
cNo cperson cinvolved cin cthe cbusiness cof cfinancing cthe cpurchase cof creal cestate cmay crequire cthe cpurchase cof cinsurance
cthrough ca cspecific cagent cas cpart cof cthe crequirements cin cthe cpurchase.
cNo cperson cinvolved cin cthe cbusiness cof cfinancing cthe cpurchase cof creal cestate cmay crequire cthe cpurchase cof cinsurance
cthrough ca cspecific cagent cas cpart cof cthe crequirements cin cthe cpurchase cexcept can cagent clicensed cwith cthe cstate cof
cCalifornia.
cA cperson cinvolved cin cthe cbusiness cof cfinancing cthe cpurchase cof creal cestate cmay crequire cthe cpurchase cof cinsurance
cthrough ca cspecific cagent cif cthe cagent cis cemployed cby cthat ccompany.
cA cperson capproved cby cthe cCommissioner cmay cbe crequired cto cbe cinvolved cin cthe cbusiness cof cfinancing cthe cpurchase cof
creal cestate. cThis cperson cwould cact cas cthe cagent cin cpurchasing cinsurance cfor cthe creal cestate. c- cCORRECT cANS✔✔No
cperson cinvolved cin cthe cbusiness cof cfinancing cthe cpurchase cof creal cestate cmay crequire cthe cpurchase cof cinsurance cthrough
ca cspecific cagent cas cpart cof cthe crequirements cin cthe cpurchase.
B-15. cWhen cdealing cwith cinsurance cin cconnection cwith csales cor cloans, cviolating cthe clegal cprovisions cspecified cby cCalifornia
claw cis cconsidered ca: c- cCORRECT cANS✔✔A cmisdemeanor.
B-16. cThe cunderwriting cprocess cconsists cof call cof cthe cfollowing cbasic csteps cexcept:
cIssue cthe crate c
QUESTIONS AND CORRECT ANSWERS
A-1. cInsurance cis ca ccontract cwhereby cone cundertakes cto cindemnify canother cagainst: c- cCORRECT cANS✔✔Damage
A-2. cA cperil cis: c- cCORRECT cANS✔✔The cactual ccause cof ca closs.
A-3. cThe cuncertainty cor cchance cof ca closs coccurring cis cknown cas: c- cCORRECT cANS✔✔Risk
A-4. cWhich care cthe cmain ctypes cof crisks? c- cCORRECT cANS✔✔Pure cand cSpeculative
A-5. cA chazard cis cbest cdefined cas: c- cCORRECT cANS✔✔Anything cthat cincreases cthe cchance cof closs cor cseverity cof closs cdue
cto ca cperil.
A-6. cA chazard cthat cdeals cwith ca cperson`s cmental cattitude, cbehavior cand chabits cis can cexample cof: c- cCORRECT cANS✔✔A
cMoral chazard.
A-7. cThe claw cof clarge cnumbers cis ca cprincipal cthat cbasically csays: c- cCORRECT cANS✔✔The clarger cthe camount cof
cinformation cgathered, cthe cmore creliable cthat cinformation cwill cbe.
A-8. cThe cterm closs cexposure crefers cto: c- cCORRECT cANS✔✔The cpossibility cof ca closs.
A-9. cThe cdegree cof closs ca cperson/organization cfaces cfrom csuits cbrought cby ca cthird cparty crefers cto: c- cCORRECT
cANS✔✔Liability closs cexposure.
A-10. cWhich cof cthe cfollowing cis cNOT crequired cfor ca crisk cto cbe cideally cinsurable? c
cThe closs cmust cbe can caccident.
cThe closs cmust cbe cdefinite cand cmeasurable.
cThe closs cmust coccur con cthe cinsured`s cproperty.
cThe closs cmust ccreate ceconomic chardship. c- cCORRECT cANS✔✔The closs cmust coccur con cthe cinsured's cproperty.
A-11. cAny ccontingent cor cunknown cevent, cwhether cpast cor cfuture, cwhich cmay cdamnify ca cperson chaving can cinsurable cinterest
cor ccreate ca cliability cagainst chim/her, cmay cbe cinsured cagainst. cThe cmore cunpredictable ca closs cbecomes: c- cCORRECT
cANS✔✔The cmore cinsurable cit cbecomes.
A-12. cRestoring cthe cinsured cback cto cthe ccondition che cor cshe cwas cin cbefore cthe closs coccurred cis cknown cas: c- cCORRECT
cANS✔✔Indemnification
A-13. cThe cprocess cof creviewing capplications cfor cinsurance cand cthe cinformation con cthe capplication cis: c- cCORRECT
cANS✔✔Underwriting
A-14. cWhich cof cthe cfollowing cis cNOT ca cknown cprivate cinsurer?
cReciprocal cInsurance cExchanges
cMutual cInsurance cCompanies
cBond cInsurance cCompanies
cStock cInsurance cCompanies c- cCORRECT cANS✔✔Bond cInsurance ccompanies care cnot cconsidered cinsurers.
A-15. cBob cis cthinking cabout cobtaining cinsurance cbecause che cjust cfound cout che cneeds cextensive csurgery cthat cwill crequire
cseveral cdays cin cthe chospital. cThis csituation cof cwaiting cuntil cthe clast cminute cto cobtain cinsurance cis cknown cas: c- cCORRECT
cANS✔✔Adverse cselection
A-16. cLoss ccontrol crefers cto: c- cCORRECT cANS✔✔Taking cthe cnecessary cprecautions cthat cwill creduce cthe crisk cof ca closs.
A-17. cWhich cof cthe cfollowing cis cthe camount cof cmoney cthe cinsured cpays cbefore cthe cinsurer cpays cfor cthe crest cof cthe cclaim?
c- cCORRECT cANS✔✔Deductible
A-18. cWhat cis creinsurance? c- cCORRECT cANS✔✔Reinsurance cis cthe cprocess cwhereby cthe cinsurer ctransfers call cor cpart cof
cthe crisk cto canother ccompany.
,A-19. cWhich cof cthe cfollowing cis cdefined cas c`an cagreement cbetween ctwo cor cmore cparties cenforceable cby claw?` c- cCORRECT
cANS✔✔A ccontract.
A-20. cWhat care cthe ctwo ctypes cof ctorts? c- cCORRECT cANS✔✔Intentional cand cUnintentional.
A-21. cWhat cis cthe cbinding cforce cof ca ccontract? c- cCORRECT cANS✔✔Consideration
A-22. cWhat cis cfraud? c- cCORRECT cANS✔✔When cone cparty cintentionally cgives cthe cother cparty cfalse cinformation cin corder cto
cbenefit cfrom cthe cunlawful cgain.
A-23. cWhen ca cright cor cprivilege chas cbeen cgiven cup, ca cparty ccannot creassert cthat cright cor cprivilege. cThe cprocess cof
cpreventing cthe cparty cfrom creasserting cthat cright cor cprivilege cis cknown cas: c- cCORRECT cANS✔✔Estoppel
A-24. cEither cparty cmay crescind ca ccontract cfor cwhat creasons? c- cCORRECT cANS✔✔Once csigned ca ccontract ccan cnever cbe
crescinded.
A-25. cExamples cof ctort claw cinclude call cof cthe cfollowing cEXCEPT:
cLibel cand cslander
cBodily cinjury
cPersonal cinjury
cBreach cof ccontract c- cCORRECT cANS✔✔Breach cof ccontract.
A-26. cSubstitution cof ca csmall ccertain closs cfor ca clarge cuncertain closs cis: c- cCORRECT cANS✔✔Insurance
A-27. cThe cstate cof cbeing csubject cto ca closs cis cconsidered: c- cCORRECT cANS✔✔Exposure
A-28. cPerformance cdepends cupon can cuncertain cfuture cevent cis cthe cfeature: c- cCORRECT cANS✔✔Aleatory
A-29. cType cof closs cexposure cpertaining cto cland cand cstructures cattached cto cit cis: c- cCORRECT cANS✔✔Property closs
cexposure.
A-30. cWhich cof cthe cfollowing cis can cexample cof can cadverse cunderwriting cdecision? c
cCharging ca chigher crate c
cRejecting cthe crisk
cIssuing cwith climitations
cAll cof cthese care cexamples c- cCORRECT cANS✔✔All care cexamples.
A-31. cWhich cof cthe cfollowing cis cnot ca cclass cof cinsurance? c
cCasualty
cFire
cMarine
cAuto c- cCORRECT cANS✔✔Casualty cis cnot ca cclass cof cinsurance.
A-32. cPunishment cfor ctwisting cor cmisrepresentation cwould cbe: c- cCORRECT cANS✔✔$25,000 cfine cor c1 cyear cin cjail.
A-33. cA cbeautician cstating cthat cthis cconditioner cfixes cbadly cdamaged chair cis ca: c- cCORRECT cANS✔✔Implied cwarranty.
A-34. cMateriality cis cdetermined cby cthe cdisadvantage cplaced con cthe cother cparty cand c- cCORRECT cANS✔✔the cinfluence cof
cthe cfacts, cnot cby cthe cevent.
A-35. cWhen can cinsured crejects cuninsured cmotorist cin cwriting cthis cis cconsidered: c- cCORRECT cANS✔✔A cwaiver.
B-1. cIn cwhich cof cthe cfollowing cmarketing cdistribution csystems cdoes cthe cagent crepresent cmore cthan cone cinsurer cand cmore
cthan cone ccompany? c
cDirect cmailing csystem
cDirect cwriting csystem
cExclusive cagency
cIndependent cagency c- cCORRECT cANS✔✔An cindependent cagency
B-2. cWhich cof cthe cfollowing cis ca cresponsibility cof cthe cinsured cin can cinsurance ccontract?
cTo ccomplete cthe capplication.
cGive ctrue cstatements cand cinformation con cthe capplication.
cSend cthe capplication cto cthe cunderwriting cdepartment.
cFully cexplain cthe cpolicy cto cthe cclient. c- cCORRECT cANS✔✔Give ctrue cstatements cand cinformation con cthe capplication.
B-3. cWhich cof cthe cfollowing cis cNOT ca ctype cof cauthority cgiven cto cagents?
cExpress cauthority
cImplied cauthority
cCustomary cauthority
cApparent cauthority c- cCORRECT cANS✔✔Customary cauthority. cThere cis cno csuch cthing.
B-4. cIn ca clegal crelationship, cwhich cauthority cdoes ca cprincipal c(company) cgive cthe cagent cin cwriting? c- cCORRECT
cANS✔✔Express cwarranty.
, B-5. cWhich cof cthe cfollowing cis cNOT ca csource cof cinformation can cunderwriter cmight cuse cto cinvestigate can capplication cin corder
cto capprove cor creject cit? c
cMedical cInformation cBureau
cDepartment cof cIndustrial cRelations
cDepartment cof cMotor cVehicles
cFinancial cReports c- cCORRECT cANS✔✔Department cof cIndustrial cRelations
B-6. cA cbroker ccan ctransact call cof cthe cfollowing cEXCEPT:
cLife, chealth, cand cdisability cinsurance
cProperty cinsurance
cCasualty cinsurance
cPersonal cLines c- cCORRECT cANS✔✔Life, chealth, cand cdisability cinsurance.
B-7. cWhich cof cthe cfollowing cis cNOT can caction ca cperson cperforms cwhen ctransacting cinsurance?
cCalling can cinsurer cfor ca cprice cquote
cSolicitation cof cinsurance
cThe cactual cexecution cof ca ccontract
cAny ctransactions cthat clater cresult cfrom cthe coperation cof cthe ccontract c- cCORRECT cANS✔✔Calling can cinsurer cfor ca cprice
cquote.
B-8. cA cperson clicensed cas ca cbroker/agent cshall cbe cdeemed cto cbe:
cresponsible cfor cdeciding cif can capplication cshould cbe capproved cor crejected
cacting cas can cinsurance cagent cin cthe ctransaction cof cinsurance cplaced cwith cthose cfor cwhom ca cnotice cof cappointment chas
cbeen cfiled cwith cthe cCommissioner
cinvolved cin cthe cbusiness cof cfinancing cthe cpurchase cof creal cestate
cacting cwith cthe csame cauthority cgranted ca cmanaging cgeneral cagent c- cCORRECT cANS✔✔Acting cas can cinsurance cagent cin
cthe ctransaction cof cinsurance cplaced cwith cthose cfor cwhom ca cnotice cof cappointment chas cbeen cfiled cwith cthe cCommissioner.
B-9. cWhich cof cthe cfollowing cis cnot ctrue cabout cthe crelationship cbetween can cagent cand ca csolicitor?
cAn cagent crepresents cthe ccompany, cwhereas cthe csolicitor cis can cassistant cto can cagent cand chas cno cbinding cauthority.
cA csolicitor ccannot cbe cemployed cby cmore cthan cone cfire cand ccasualty cbroker/agent cat cthe csame ctime.
cAn cagent cor cbroker ccannot ctransact cas ca csolicitor, cbut ca csolicitor ccan ctransact cas ca cbroker cor cagent.
cA csolicitor cmay cgive cpremium cquotes cover cthe cphone, cjust clike can cagent. c- cCORRECT cANS✔✔An cagent cor cbroker ccannot
ctransact cas ca csolicitor, cbut ca csolicitor ccan ctransact cas ca cbroker cor cagent.
B-10. cThe capplication cis cthe cdocument cthat: c- cCORRECT cANS✔✔States cthe cname cof cthe cinsured, cthe cpremium, cand cother
cfacts cthat chelp cthe cinsurer cdecide cwhether cto caccept cor creject cit.
B-11. cIf can cagent cgives cincorrect cadvice cor cunknowingly cprovides cincorrect cinformation cto cthe cclient, cwhich cof cthe cfollowing
cliability cinsurance cpolicies cfor cnonmedical cprofessionals cis cavailable cto cpay cfor closses cor cdefend clawsuits cthat cmight cbe
cfiled cagainst chim? c
cLiability cinsurance
cErrors cand cOmissions
cMedical cInsurance
cNonadmitted c- cCORRECT cANS✔✔Errors cand cOmissions.
B-12. cErrors cand comissions cis ca ctype cof cliability cinsurance: c- cCORRECT cANS✔✔That cagents cuse cto cprotect cthemselves cif
cthey cgive cincorrect cadvice cor cinformation cto ca cclient.
B-13. cThe cfollowing cacts care cunlawful cand care cmisdemeanors cin cCalifornia cexcept cwhen cperformed cby ca csurplus clines
cbroker cEXCEPT: c
cIn cany cmanner, cadvertising cfor ca cnonadmitted cinsurer cin cthis cstate.
cIn cany cmanner, cadvertising cfor can cadmitted cinsurer cin cthis cstate.
cIn cany cother cmanner, caiding ca cnonadmitted cinsurer cto ctransact cinsurance cbusiness cin cthis cstate.
cActing cas cagent cfor ca cnonadmitted cinsurer cin cthe ctransaction cof cinsurance cbusiness cin cthis cstate. c- cCORRECT cANS✔✔In
cany cmanner, cadvertising cfor can cadmitted cinsurer cin cthis cstate.
B-14. cWhich cof cthe cfollowing cstatements cabout cinsurance cin cconnection cwith csales cor cloans cis cTRUE?
cNo cperson cinvolved cin cthe cbusiness cof cfinancing cthe cpurchase cof creal cestate cmay crequire cthe cpurchase cof cinsurance
cthrough ca cspecific cagent cas cpart cof cthe crequirements cin cthe cpurchase.
cNo cperson cinvolved cin cthe cbusiness cof cfinancing cthe cpurchase cof creal cestate cmay crequire cthe cpurchase cof cinsurance
cthrough ca cspecific cagent cas cpart cof cthe crequirements cin cthe cpurchase cexcept can cagent clicensed cwith cthe cstate cof
cCalifornia.
cA cperson cinvolved cin cthe cbusiness cof cfinancing cthe cpurchase cof creal cestate cmay crequire cthe cpurchase cof cinsurance
cthrough ca cspecific cagent cif cthe cagent cis cemployed cby cthat ccompany.
cA cperson capproved cby cthe cCommissioner cmay cbe crequired cto cbe cinvolved cin cthe cbusiness cof cfinancing cthe cpurchase cof
creal cestate. cThis cperson cwould cact cas cthe cagent cin cpurchasing cinsurance cfor cthe creal cestate. c- cCORRECT cANS✔✔No
cperson cinvolved cin cthe cbusiness cof cfinancing cthe cpurchase cof creal cestate cmay crequire cthe cpurchase cof cinsurance cthrough
ca cspecific cagent cas cpart cof cthe crequirements cin cthe cpurchase.
B-15. cWhen cdealing cwith cinsurance cin cconnection cwith csales cor cloans, cviolating cthe clegal cprovisions cspecified cby cCalifornia
claw cis cconsidered ca: c- cCORRECT cANS✔✔A cmisdemeanor.
B-16. cThe cunderwriting cprocess cconsists cof call cof cthe cfollowing cbasic csteps cexcept:
cIssue cthe crate c
