CA Property and Casualty Insurance Practice Exam
Study online at https://quizlet.com/_4sbgu3
1. Which of the following is TRUE regarding who qualifies 1. Any person who is un-
for coverage under the California Fair Access to Insur- able to obtain basic prop-
ance Requirements plan? erty insurance through
1. normal channels.
Any person who is unable to obtain basic property
insurance through normal channels.
2.
Any person who qualifies will receive superior cover-
age to other forms of property insurance.
3.
Any person who does NOT have an insurable interest
in a property can participate in the FAIR plan.
4.
Any person who qualifies will have the inspection au-
tomatically waived if they are a FAIR plan participant.
2. A Special Surplus Line Broker is allowed to place cov- 3. transportation involving
erage with a non-admitted insurer for all the following bridges and tunnels.
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.
3. Which of the following is TRUE regarding the applica- 1. The fees and process
tion and renewal of the limited lines automobile insur- are the same as for a per-
ance agent license? sonal lines licensee.
, CA Property and Casualty Insurance Practice Exam
Study online at https://quizlet.com/_4sbgu3
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 prop-
erty or casualty broker-agent.
4.
The agent must pass an examination on the insurance
code and products, but not ethics.
4. Which of the following is TRUE regarding continuing 1. Any licensee shall sat-
education requirements of an agent or broker? isfactorily complete 24
1. hours of instruction prior
Any licensee shall satisfactorily complete 24 hours of to license renewal.
instruction prior to license renewal.
2.
Any licensee in good standing for 10 years may apply
for exemption to the continuing education require-
ment 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.
5.
, CA Property and Casualty Insurance Practice Exam
Study online at https://quizlet.com/_4sbgu3
Which is an ACCURATE statement regarding the List of 4. Eligible carriers do not
Approved Surplus Lines Insurers? need to file documents
1. with the California Depart-
Participation in LASLI is mandatory and all approved ment of Insurance.
non admitted insurers are on the list.
2.
Surplus lines insurers that are not on the list are unap-
proved 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.
6. What 2 different types of areas are served by the Cali- 4. Brush fire risk and inner
fornia Fair Access to Insurance Responsibilities plan? city.
1.
Poor and alien.
2.
Earthquake prone and rural.
3.
War zones and high crime.
4.
Brush fire risk and inner city.
7. Except in a case where the property is being held as a 4. The extent to which the
carrier or depository, what is the insurable interest is insured would be damni-
measured by? fied by loss or injury to the
1. property.
The size of the premium.
2.
, CA Property and Casualty Insurance Practice Exam
Study online at https://quizlet.com/_4sbgu3
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.
8. ALL of the following are examples of open policies 2. agreed value.
EXCEPT
1.
market value.
2.
agreed value.
3.
actual cash value.
4.
replacement value.
9. It is unlawful to do any of the following EXCEPT 3. make or cause to made
1. a knowingly false or fraud-
knowingly assist, abet, conspire with, or solicit a per- ulent or material repre-
son in an unlawful act under this section of the insur- sentation for the purpose
ance code. of encouraging an injured
2. worker to claim benefits.
make or cause to made a knowingly false or fraudulent
or material representation for the purpose of obtain-
ing or denying any compensation.
3.
make or cause to made a knowingly false or fraudulent
or material representation for the purpose of encour-
aging an injured worker to claim benefits.
4.
Study online at https://quizlet.com/_4sbgu3
1. Which of the following is TRUE regarding who qualifies 1. Any person who is un-
for coverage under the California Fair Access to Insur- able to obtain basic prop-
ance Requirements plan? erty insurance through
1. normal channels.
Any person who is unable to obtain basic property
insurance through normal channels.
2.
Any person who qualifies will receive superior cover-
age to other forms of property insurance.
3.
Any person who does NOT have an insurable interest
in a property can participate in the FAIR plan.
4.
Any person who qualifies will have the inspection au-
tomatically waived if they are a FAIR plan participant.
2. A Special Surplus Line Broker is allowed to place cov- 3. transportation involving
erage with a non-admitted insurer for all the following bridges and tunnels.
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.
3. Which of the following is TRUE regarding the applica- 1. The fees and process
tion and renewal of the limited lines automobile insur- are the same as for a per-
ance agent license? sonal lines licensee.
, CA Property and Casualty Insurance Practice Exam
Study online at https://quizlet.com/_4sbgu3
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 prop-
erty or casualty broker-agent.
4.
The agent must pass an examination on the insurance
code and products, but not ethics.
4. Which of the following is TRUE regarding continuing 1. Any licensee shall sat-
education requirements of an agent or broker? isfactorily complete 24
1. hours of instruction prior
Any licensee shall satisfactorily complete 24 hours of to license renewal.
instruction prior to license renewal.
2.
Any licensee in good standing for 10 years may apply
for exemption to the continuing education require-
ment 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.
5.
, CA Property and Casualty Insurance Practice Exam
Study online at https://quizlet.com/_4sbgu3
Which is an ACCURATE statement regarding the List of 4. Eligible carriers do not
Approved Surplus Lines Insurers? need to file documents
1. with the California Depart-
Participation in LASLI is mandatory and all approved ment of Insurance.
non admitted insurers are on the list.
2.
Surplus lines insurers that are not on the list are unap-
proved 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.
6. What 2 different types of areas are served by the Cali- 4. Brush fire risk and inner
fornia Fair Access to Insurance Responsibilities plan? city.
1.
Poor and alien.
2.
Earthquake prone and rural.
3.
War zones and high crime.
4.
Brush fire risk and inner city.
7. Except in a case where the property is being held as a 4. The extent to which the
carrier or depository, what is the insurable interest is insured would be damni-
measured by? fied by loss or injury to the
1. property.
The size of the premium.
2.
, CA Property and Casualty Insurance Practice Exam
Study online at https://quizlet.com/_4sbgu3
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.
8. ALL of the following are examples of open policies 2. agreed value.
EXCEPT
1.
market value.
2.
agreed value.
3.
actual cash value.
4.
replacement value.
9. It is unlawful to do any of the following EXCEPT 3. make or cause to made
1. a knowingly false or fraud-
knowingly assist, abet, conspire with, or solicit a per- ulent or material repre-
son in an unlawful act under this section of the insur- sentation for the purpose
ance code. of encouraging an injured
2. worker to claim benefits.
make or cause to made a knowingly false or fraudulent
or material representation for the purpose of obtain-
ing or denying any compensation.
3.
make or cause to made a knowingly false or fraudulent
or material representation for the purpose of encour-
aging an injured worker to claim benefits.
4.
