CA Property and Casualty Insurance Practice Exam
2026/2027 Questions And Correct Answers Graded
A+
Which of the following is TRUE regarding who qualifies for coverage under the
California Fair Access to Insurance Requirements plan?
1.
Any person who is unable to obtain basic property insurance through normal
channels.
2.
Any person who qualifies will receive superior coverage 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 automatically waived if they are
a FAIR plan participant.
1. Any person who is unable to obtain basic property insurance through normal
channels.
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.
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.
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.
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.
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.
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.
4. The extent to which the insured would be damnified by loss or injury to the
property.
2026/2027 Questions And Correct Answers Graded
A+
Which of the following is TRUE regarding who qualifies for coverage under the
California Fair Access to Insurance Requirements plan?
1.
Any person who is unable to obtain basic property insurance through normal
channels.
2.
Any person who qualifies will receive superior coverage 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 automatically waived if they are
a FAIR plan participant.
1. Any person who is unable to obtain basic property insurance through normal
channels.
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.
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.
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.
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.
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.
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.
4. The extent to which the insured would be damnified by loss or injury to the
property.
