CA Property and Casualty Insurance Practice Exam &
Study Guide || Most Recent Exam 2026-2027 Actual
Complete Real Exam Questions And Correct Answers
(Verified Answers) Already Graded A+ | Guaranteed
Success!! Newest Exam | Just Released!!
Who is responsible for notifying the public of a proposed rate
increase?
1.
The insurance commissioner.
2.
An insurance watchdog agency.
3.
The Fair Credit Reporting Agency.
4.
The insurance company proposing the increase. - ANSWER-1. The
insurance commissioner.
What criteria must a person meet in order to be qualified to purchase
a Good Driver Discount policy?
1.
Being licensed to drive a motor vehicle for the previous 5 years and
has not had more than one violation point count as determined by the
CIC.
2.
,Being licensed to drive a motor vehicle for the previous 3 years and
has not had more than two violation point count as determined by the
CIC.
3.
Being licensed to drive a motor vehicle for the previous 3 years and
able to meet the standards of an insurer's applicable Good Driver
program.
4.
Being licensed to drive a motor vehicle for the previous 3 years and
has not had more than one violation point count as determined by the
CIC. - ANSWER-4. Being licensed to drive a motor vehicle for the
previous 3 years and has not had more than one violation point count
as determined by the CIC.
Who is legally capable to estimate the replacement value of a
structure and discuss homeowners policy coverage levels?
1.
An agent or broker.
2.
An appraiser or architect.
3.
An insurer underwriter or actuary.
4.
A member of the insurance committee. - ANSWER-3. An insurer
underwriter or actuary.
All of the following are TRUE In reference to an insurance binder
EXCEPT
1. it is proof of coverage.
,2. it provides coverage pending
issuance of a policy.
3. it remains valid until a policy has
been delivered.
4.
it includes all terms and endorements applicable to the policy. -
ANSWER-3. it remains valid until a policy has been delivered.
All of the following are reasons earthquake policy deductibles are
MORE FAVORABLE than commonly used property deductibles
EXCEPT
1. the personal property deductible is waived once the
dwelling deductible is met.
2.
only the earthquake policy will cover for damages due to an
earthquake once the deductible is met.
3.
the earthquake deductible is often 10 to 15 percent higher than for
other types of property coverage.
4.
no deductible is required for eligibility to be triggered if the
earthquake policy claim exceeds the deductible by 100%. - ANSWER-
3. the earthquake deductible is often 10 to 15 percent higher than for
other types of property coverage.
How does an "admitted" person differ from an "nonadmitted" person,
as it pertains to insurance?
1.
, An "admitted" person has admitted to a crime or fraud, while a
"nonadmitted" person has not.
2.
An "admitted" person has been granted admission to an insurance
association, while a "nonadmitted" person has not been accepted.
3.
An "admitted" person has been admitted to an accreditation program,
while a "nonadmitted" person has yet to earn the credits.
4.
An "admitted" person has the right to transact insurance business
within the state, while a "nonadmitted" person is not entitled to this
action. - ANSWER-4. An "admitted" person has the right to transact
insurance business within the state, while a "nonadmitted" person is
not entitled to this action.
What possible consequences are faced from the insurance
commissioner by an agent or broker who does not within 60 days
comply with an order to establish and complete records?
1. a fine increasing up
to $5,000 2.
a suspension or revocation of license
3.
a mandatory jail sentence of 30 days
4.
a reduction of future commissions awarded - ANSWER-2. a
suspension or revocation of license
"Person" means all of the following EXCEPT
Study Guide || Most Recent Exam 2026-2027 Actual
Complete Real Exam Questions And Correct Answers
(Verified Answers) Already Graded A+ | Guaranteed
Success!! Newest Exam | Just Released!!
Who is responsible for notifying the public of a proposed rate
increase?
1.
The insurance commissioner.
2.
An insurance watchdog agency.
3.
The Fair Credit Reporting Agency.
4.
The insurance company proposing the increase. - ANSWER-1. The
insurance commissioner.
What criteria must a person meet in order to be qualified to purchase
a Good Driver Discount policy?
1.
Being licensed to drive a motor vehicle for the previous 5 years and
has not had more than one violation point count as determined by the
CIC.
2.
,Being licensed to drive a motor vehicle for the previous 3 years and
has not had more than two violation point count as determined by the
CIC.
3.
Being licensed to drive a motor vehicle for the previous 3 years and
able to meet the standards of an insurer's applicable Good Driver
program.
4.
Being licensed to drive a motor vehicle for the previous 3 years and
has not had more than one violation point count as determined by the
CIC. - ANSWER-4. Being licensed to drive a motor vehicle for the
previous 3 years and has not had more than one violation point count
as determined by the CIC.
Who is legally capable to estimate the replacement value of a
structure and discuss homeowners policy coverage levels?
1.
An agent or broker.
2.
An appraiser or architect.
3.
An insurer underwriter or actuary.
4.
A member of the insurance committee. - ANSWER-3. An insurer
underwriter or actuary.
All of the following are TRUE In reference to an insurance binder
EXCEPT
1. it is proof of coverage.
,2. it provides coverage pending
issuance of a policy.
3. it remains valid until a policy has
been delivered.
4.
it includes all terms and endorements applicable to the policy. -
ANSWER-3. it remains valid until a policy has been delivered.
All of the following are reasons earthquake policy deductibles are
MORE FAVORABLE than commonly used property deductibles
EXCEPT
1. the personal property deductible is waived once the
dwelling deductible is met.
2.
only the earthquake policy will cover for damages due to an
earthquake once the deductible is met.
3.
the earthquake deductible is often 10 to 15 percent higher than for
other types of property coverage.
4.
no deductible is required for eligibility to be triggered if the
earthquake policy claim exceeds the deductible by 100%. - ANSWER-
3. the earthquake deductible is often 10 to 15 percent higher than for
other types of property coverage.
How does an "admitted" person differ from an "nonadmitted" person,
as it pertains to insurance?
1.
, An "admitted" person has admitted to a crime or fraud, while a
"nonadmitted" person has not.
2.
An "admitted" person has been granted admission to an insurance
association, while a "nonadmitted" person has not been accepted.
3.
An "admitted" person has been admitted to an accreditation program,
while a "nonadmitted" person has yet to earn the credits.
4.
An "admitted" person has the right to transact insurance business
within the state, while a "nonadmitted" person is not entitled to this
action. - ANSWER-4. An "admitted" person has the right to transact
insurance business within the state, while a "nonadmitted" person is
not entitled to this action.
What possible consequences are faced from the insurance
commissioner by an agent or broker who does not within 60 days
comply with an order to establish and complete records?
1. a fine increasing up
to $5,000 2.
a suspension or revocation of license
3.
a mandatory jail sentence of 30 days
4.
a reduction of future commissions awarded - ANSWER-2. a
suspension or revocation of license
"Person" means all of the following EXCEPT
