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CA PROPERTY AND CASUALTY INSURANCE
PRACTICE EXAM 2025 QUESTIONS AND
ANSWERS.
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. - correct answer - 1. If the
same insurance coverage cannot be procured from an admitted
insurer.
The following are valid insurance classes under California
Insurance Law EXCEPT
1.
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life, fire, marine and title.
2.
surety, disability and plate glass.
3.
certainty, precious metals, and gems.
4.
sprinkler, boiler and machinery, and team and vehicle. - correct
answer - 3. certainty, precious metals, and gems.
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. - correct answer -
1. 20% below the rate the insured would have been otherwise
charged for the same coverage.
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All of the following are a duty of an insurer in regards to claims on
file and record documentation EXCEPT
1.
maintaining claim data so that an insurer shall be able to provide
the claim number, line of coverage, and other pertinent data.
2.
recording the date the licensee received, date(s) the licensee
processed and date the licensee transmitted or mailed every
material and relevant document in the file.
3.
maintaining any sales material, which had a material impact on
the claims process.
4.
maintaining claim files that are accessible, legible, and claim of
duplication. - correct answer - 3. maintaining any sales material,
which had a material impact on the claims process.
Every licensee and applicant for a license shall immediately notify
the commissioner using an approved electronic service of any
changes of all of the following EXCEPT
1.
e-mail address.
2.
mailing address.
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3.
telephone and fax number.
4.
business or residential address - correct answer - 3. telephone
and fax number.
What is the maximum coverage allowed through the California
Automobile Assigned Risk Program for bodily injury and death?
1.
The maximum coverage is limited to value of the insured's
vehicle.
2.
The maximum coverage per accident is limited to $30,000 of all
persons as a result of any one accident.
3.
It is unlawful to set a maximum limit, because there could be a
large number of people involved.
4.
The maximum coverage is $5,000 per person, regardless of the
number of people involved in an accident. - correct answer - 2.
The maximum coverage per accident is limited to $30,000 of all
persons as a result of any one accident.
CA PROPERTY AND CASUALTY INSURANCE
PRACTICE EXAM 2025 QUESTIONS AND
ANSWERS.
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. - correct answer - 1. If the
same insurance coverage cannot be procured from an admitted
insurer.
The following are valid insurance classes under California
Insurance Law EXCEPT
1.
, Page | 2
life, fire, marine and title.
2.
surety, disability and plate glass.
3.
certainty, precious metals, and gems.
4.
sprinkler, boiler and machinery, and team and vehicle. - correct
answer - 3. certainty, precious metals, and gems.
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. - correct answer -
1. 20% below the rate the insured would have been otherwise
charged for the same coverage.
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All of the following are a duty of an insurer in regards to claims on
file and record documentation EXCEPT
1.
maintaining claim data so that an insurer shall be able to provide
the claim number, line of coverage, and other pertinent data.
2.
recording the date the licensee received, date(s) the licensee
processed and date the licensee transmitted or mailed every
material and relevant document in the file.
3.
maintaining any sales material, which had a material impact on
the claims process.
4.
maintaining claim files that are accessible, legible, and claim of
duplication. - correct answer - 3. maintaining any sales material,
which had a material impact on the claims process.
Every licensee and applicant for a license shall immediately notify
the commissioner using an approved electronic service of any
changes of all of the following EXCEPT
1.
e-mail address.
2.
mailing address.
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3.
telephone and fax number.
4.
business or residential address - correct answer - 3. telephone
and fax number.
What is the maximum coverage allowed through the California
Automobile Assigned Risk Program for bodily injury and death?
1.
The maximum coverage is limited to value of the insured's
vehicle.
2.
The maximum coverage per accident is limited to $30,000 of all
persons as a result of any one accident.
3.
It is unlawful to set a maximum limit, because there could be a
large number of people involved.
4.
The maximum coverage is $5,000 per person, regardless of the
number of people involved in an accident. - correct answer - 2.
The maximum coverage per accident is limited to $30,000 of all
persons as a result of any one accident.
