PROPERTY AND CASUALTY EXAM PREP
2026 STUDY GUIDE QUESTIONS AND
ANSWERS VERIFIED
●● A Special Surplus Line Broker is allowed to place coverage with a
non-admitted insurer for all the following EXCEPT
1.
aircraft insurance.
2.
interstate commerce involving railroads.
3.
transportation involving bridges and tunnels.
4.
insurance against perils of navigation for import and exporting of
goods..
Answer: 3. transportation involving bridges and tunnels.
●● Which of the following is TRUE regarding the application and
renewal of the limited lines automobile insurance agent license?
1.
The fees and process are the same as for a personal lines licensee.
2.
,There are no fees for filing the application or renewal applications for
the license.
3.
The limited lines agent is ineligible to become a property or casualty
broker-agent.
4.
The agent must pass an examination on the insurance code and products,
but not ethics..
Answer: 1. The fees and process are the same as for a personal lines
licensee.
●● Which of the following is TRUE regarding continuing education
requirements of an agent or broker?
1.
Any licensee shall satisfactorily complete 24 hours of instruction prior to
license renewal.
2.
Any licensee in good standing for 10 years may apply for exemption to
the continuing education requirement if reputation has been proven.
3.
An agent or broker licensed in life and health requires more continuing
education hours than an agent or broker licensed in property and
casualty.
4.
,A licensee who is 65 years or older shall be exempt from continuing
education hours if reputation of agent or broker is in good standing for
25 years..
Answer: 1. Any licensee shall satisfactorily complete 24 hours of
instruction prior to license renewal.
●● Which is an ACCURATE statement regarding the List of Approved
Surplus Lines Insurers?
1.
Participation in LASLI is mandatory and all approved non admitted
insurers are on the list.
2.
Surplus lines insurers that are not on the list are unapproved for broker
use.
3.
The same rules apply for U.S. domiciled and non U.S. domiciled
carriers.
4.
Eligible carriers do not need to file documents with the California
Department of Insurance..
Answer: 4. Eligible carriers do not need to file documents with the
California Department of Insurance.
●● What 2 different types of areas are served by the California Fair
Access to Insurance Responsibilities plan?
, 1.
Poor and alien.
2.
Earthquake prone and rural.
3.
War zones and high crime.
4.
Brush fire risk and inner city..
Answer: 4. Brush fire risk and inner city.
●● Except in a case where the property is being held as a carrier or
depository, what is the insurable interest is measured by?
1.
The size of the premium.
2.
Fair market value of the property.
3.
The contingent or expectant value to the insured.
4.
The extent to which the insured would be damnified by loss or injury to
the property..
Answer: 4. The extent to which the insured would be damnified by loss
or injury to the property.
2026 STUDY GUIDE QUESTIONS AND
ANSWERS VERIFIED
●● A Special Surplus Line Broker is allowed to place coverage with a
non-admitted insurer for all the following EXCEPT
1.
aircraft insurance.
2.
interstate commerce involving railroads.
3.
transportation involving bridges and tunnels.
4.
insurance against perils of navigation for import and exporting of
goods..
Answer: 3. transportation involving bridges and tunnels.
●● Which of the following is TRUE regarding the application and
renewal of the limited lines automobile insurance agent license?
1.
The fees and process are the same as for a personal lines licensee.
2.
,There are no fees for filing the application or renewal applications for
the license.
3.
The limited lines agent is ineligible to become a property or casualty
broker-agent.
4.
The agent must pass an examination on the insurance code and products,
but not ethics..
Answer: 1. The fees and process are the same as for a personal lines
licensee.
●● Which of the following is TRUE regarding continuing education
requirements of an agent or broker?
1.
Any licensee shall satisfactorily complete 24 hours of instruction prior to
license renewal.
2.
Any licensee in good standing for 10 years may apply for exemption to
the continuing education requirement if reputation has been proven.
3.
An agent or broker licensed in life and health requires more continuing
education hours than an agent or broker licensed in property and
casualty.
4.
,A licensee who is 65 years or older shall be exempt from continuing
education hours if reputation of agent or broker is in good standing for
25 years..
Answer: 1. Any licensee shall satisfactorily complete 24 hours of
instruction prior to license renewal.
●● Which is an ACCURATE statement regarding the List of Approved
Surplus Lines Insurers?
1.
Participation in LASLI is mandatory and all approved non admitted
insurers are on the list.
2.
Surplus lines insurers that are not on the list are unapproved for broker
use.
3.
The same rules apply for U.S. domiciled and non U.S. domiciled
carriers.
4.
Eligible carriers do not need to file documents with the California
Department of Insurance..
Answer: 4. Eligible carriers do not need to file documents with the
California Department of Insurance.
●● What 2 different types of areas are served by the California Fair
Access to Insurance Responsibilities plan?
, 1.
Poor and alien.
2.
Earthquake prone and rural.
3.
War zones and high crime.
4.
Brush fire risk and inner city..
Answer: 4. Brush fire risk and inner city.
●● Except in a case where the property is being held as a carrier or
depository, what is the insurable interest is measured by?
1.
The size of the premium.
2.
Fair market value of the property.
3.
The contingent or expectant value to the insured.
4.
The extent to which the insured would be damnified by loss or injury to
the property..
Answer: 4. The extent to which the insured would be damnified by loss
or injury to the property.
