CA Property and Casualty Insurance Practice Exam | Study Guide Questions with Verified Answers | 2026 | 2027 (Rated A) Latest Update.

CA Property and Casualty Insurance Practice Exam | Study Guide Questions with Verified Answers | 2026 | 2027 (Rated A) Latest Update. Quiz_________________? 1. 20% below the rate the insured would have been otherwise charged for the same coverage. - ANSWER What is the required rate discount under a Good Driver Discount policy? 1. 20% below the rate the insured would have been otherwise charged for the same coverage. 2. 10% below the rate the insured would have been otherwise charged for the same coverage. 3. 20% below the insurer's average premium rate. 4. 10% below the insurer's average premium rate. Quiz_________________? 1. An annual payment has been received by the insurer. - ANSWER Which condition is NOT required to be met for a surplus line broker to advise any home state insured or applicant that coverage has been, or will be obtained from a nonadmitted insurer? 1. An annual payment has been received by the insurer. 2. The broker has prior written authority from the nonadmitted insurer. 3. The broker has received advice for coverage in the ordinary course of business. 4. A policy of insurance has actually been issued and delivered by the nonadmitted insurer. Quiz_________________? 1. Any licensee shall satisfactorily complete 24 hours of instruction prior to license renewal. - ANSWER 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. Quiz_________________? 1. Any person who is unable to obtain basic property insurance through normal channels. - ANSWER 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. Quiz_________________? 1. at the time of application or receipt of premium moneys - ANSWER When shall a life agent, a property broker-agent or a casualty broker-agent provide to all insureds or applicants the effective date of coverage? 1. at the time of application or receipt of premium moneys 2. at the time that the insurance company approves the application 3. at the time the insurance company verifies receipt of the application 4. at the time that the insurance company issues the policy Quiz_________________? 1. bonds issued in all 50 states of the United States. - ANSWER If fiduciary funds are received by any licensee, the funds shall be maintained in any of the following EXCEPT 1. bonds issued in all 50 states of the United States. 2. United States government bonds and treasury certificates. 3. certificates of deposit of banks or savings and loan associations licensed by any state. 4. repurchase agreements collateralized by securities issued by the United States government Quiz_________________? 1. delivering policies to the insured. - ANSWER All of the following are duties of a Managing General Agent EXCEPT 1. delivering policies to the insured. 2. accepting or declining risk of applicants. 3. appointing, supervising and terminating agents within the territory. 4. collecting premiums from brokers and agents and remitting them to the insurer. Quiz_________________? 1. If the same insurance coverage cannot be procured from an admitted insurer. - ANSWER When may a surplus line broker solicit and place insurance for a home state insured with a nonadmitted insurer? 1. If the same insurance coverage cannot be procured from an admitted insurer. 2. If the nonadmitted insurer is a domestic rather than an alien or foreign company. 3. Only when the nonadmitted insurer signs an agreement to become an admitted insurer. 4. Only when the proposed insured petitions for the right to be offered the coverage by the broker. Quiz_________________? 1. personal aircraft. - ANSWER A personal lines licensee is an agent-broker who is able to transact coverage for all of the following EXCEPT 1. personal aircraft. 2. earthquake and flood. 3. residential property. 4. automobiles and recreational vehicles. Quiz_________________? 1. the education of the applicant. - ANSWER All of the following are taken into consideration for California Automobile Assigned Risk Program eligibility for applicants EXCEPT 1. the education of the applicant. 2. the driving record of the applicant. 3. the mental and physical health of the applicant. 4. any criminal history or convictions of the applicant.