CA Property and Casualty Insurance Practice Exam Test
Questions with Answers 100% Pass
Which of the following is TRUE regarding who There are no fees for filing the application or
qualifies for coverage under the California Fair renewal applications for the license.
Access to Insurance Requirements plan? 3.
1. The limited lines agent is ineligible to become a
Any person who is unable to obtain basic property or casualty broker-agent.
property insurance through normal channels. 4.
2. The agent must pass an examination on the
Any person who qualifies will receive superior insurance code and products, but not ethics. -
coverage to other forms of property insurance. ANSWER -1. The fees and process are the
3. same as for a personal lines licensee.
Any person who does NOT have an insurable
interest in a property can participate in the FAIR
plan.
4. Which of the following is TRUE regarding
Any person who qualifies will have the inspection continuing education requirements of an agent or
automatically waived if they are a FAIR plan broker?
participant. - ANSWER -1. Any person who 1.
is unable to obtain basic property insurance Any licensee shall satisfactorily complete 24
through normal channels. hours of instruction prior to license renewal.
2.
Any licensee in good standing for 10 years may
apply for exemption to the continuing education
A Special Surplus Line Broker is allowed to place requirement if reputation has been proven.
coverage with a non-admitted insurer for all the 3.
following EXCEPT An agent or broker licensed in life and health
1. requires more continuing education hours than
aircraft insurance. an agent or broker licensed in property and
2. casualty.
interstate commerce involving railroads. 4.
3. A licensee who is 65 years or older shall be
transportation involving bridges and tunnels. exempt from continuing education hours if
4. reputation of agent or broker is in good standing
insurance against perils of navigation for import for 25 years. - ANSWER -1. Any licensee
and exporting of goods. - ANSWER -3. shall satisfactorily complete 24 hours of
transportation involving bridges and tunnels. instruction prior to license renewal.
Which of the following is TRUE regarding the Which is an ACCURATE statement regarding the
application and renewal of the limited lines List of Approved Surplus Lines Insurers?
automobile insurance agent license? 1.
1. Participation in LASLI is mandatory and all
The fees and process are the same as for a approved non admitted insurers are on the list.
personal lines licensee. 2.
2. Surplus lines insurers that are not on the list are
,CA Property and Casualty Insurance Practice Exam Test
Questions with Answers 100% Pass
unapproved for broker use.
3.
The same rules apply for U.S. domiciled and non ALL of the following are examples of open
U.S. domiciled carriers. policies EXCEPT
4. 1.
Eligible carriers do not need to file documents market value.
with the California Department of Insurance. - 2.
ANSWER -4. Eligible carriers do not need agreed value.
to file documents with the California Department 3.
of Insurance. actual cash value.
4.
replacement value. - ANSWER -2. agreed
value.
What 2 different types of areas are served by the
California Fair Access to Insurance
Responsibilities plan?
1. It is unlawful to do any of the following EXCEPT
Poor and alien. 1.
2. knowingly assist, abet, conspire with, or solicit a
Earthquake prone and rural. person in an unlawful act under this section of the
3. insurance code.
War zones and high crime. 2.
4. make or cause to made a knowingly false or
Brush fire risk and inner city. - ANSWER -4. fraudulent or material representation for the
Brush fire risk and inner city. purpose of obtaining or denying any
compensation.
3.
make or cause to made a knowingly false or
Except in a case where the property is being fraudulent or material representation for the
held as a carrier or depository, what is the purpose of encouraging an injured worker to
insurable interest is measured by? claim benefits.
1. 4.
The size of the premium. present or cause to be presented a knowingly
2. false or fraudulent written or oral material
Fair market value of the property. statement in support of, or in opposition to, a
3. claim for compensation. - ANSWER -3.
The contingent or expectant value to the insured. make or cause to made a knowingly false or
4. fraudulent or material representation for the
The extent to which the insured would be purpose of encouraging an injured worker to
damnified by loss or injury to the property. - claim benefits.
ANSWER -4. The extent to which the
insured would be damnified by loss or injury to
the property.
All of the following are PRINCIPAL rating factors
in determining automobile insurance premiums
, CA Property and Casualty Insurance Practice Exam Test
Questions with Answers 100% Pass
EXCEPT
1.
the insured's driving safety record.
2. Under the California Vehicle Code all of the
the number of miles driven annually. following are acceptable to satisfy the Financial
3. Responsibility requirement EXCEPT
the zip code where the vehicle is housed. 1.
4. a DMV-issued self-insurance certificate.
the years of driving experience the insured has. -2.
ANSWER -3. the zip code where the a motor vehicle liability insurance coverage.
vehicle is housed. 3.
a cash deposit of $35,000 with the Department of
Motor Vehicles.
4.
All of the following are taken into consideration a company with an escrow account that is
for California Automobile Assigned Risk Program licensed to do business in California. -
eligibility for applicants EXCEPT ANSWER -4. a company with an escrow
1. account that is licensed to do business in
the education of the applicant. California.
2.
the driving record of the applicant.
3.
the mental and physical health of the applicant. Which is NOT a duty of the Workers
4. Compensation Bureau?
any criminal history or convictions of the 1.
applicant. - ANSWER -1. the education of Inspect risks for classification or rating purposes.
the applicant. 2.
Determine which claims are approved and which
are denied.
3.
All of the following are duties of a Managing Provide reliable statistics and rating information
General Agent EXCEPT used to help establish premiums.
1. 4.
delivering policies to the insured. Examine policies and other evidences of
2. insurance to check for compliance with the law. -
accepting or declining risk of applicants. ANSWER -2. Determine which claims are
3. approved and which are denied.
appointing, supervising and terminating agents
within the territory.
4.
collecting premiums from brokers and agents Which circumstances in a pretext interview
and remitting them to the insurer. - determine if the questions are permissible?
ANSWER -1. delivering policies to the 1.
insured. When an insured is questioned prior to the
application to determine the best
Questions with Answers 100% Pass
Which of the following is TRUE regarding who There are no fees for filing the application or
qualifies for coverage under the California Fair renewal applications for the license.
Access to Insurance Requirements plan? 3.
1. The limited lines agent is ineligible to become a
Any person who is unable to obtain basic property or casualty broker-agent.
property insurance through normal channels. 4.
2. The agent must pass an examination on the
Any person who qualifies will receive superior insurance code and products, but not ethics. -
coverage to other forms of property insurance. ANSWER -1. The fees and process are the
3. same as for a personal lines licensee.
Any person who does NOT have an insurable
interest in a property can participate in the FAIR
plan.
4. Which of the following is TRUE regarding
Any person who qualifies will have the inspection continuing education requirements of an agent or
automatically waived if they are a FAIR plan broker?
participant. - ANSWER -1. Any person who 1.
is unable to obtain basic property insurance Any licensee shall satisfactorily complete 24
through normal channels. hours of instruction prior to license renewal.
2.
Any licensee in good standing for 10 years may
apply for exemption to the continuing education
A Special Surplus Line Broker is allowed to place requirement if reputation has been proven.
coverage with a non-admitted insurer for all the 3.
following EXCEPT An agent or broker licensed in life and health
1. requires more continuing education hours than
aircraft insurance. an agent or broker licensed in property and
2. casualty.
interstate commerce involving railroads. 4.
3. A licensee who is 65 years or older shall be
transportation involving bridges and tunnels. exempt from continuing education hours if
4. reputation of agent or broker is in good standing
insurance against perils of navigation for import for 25 years. - ANSWER -1. Any licensee
and exporting of goods. - ANSWER -3. shall satisfactorily complete 24 hours of
transportation involving bridges and tunnels. instruction prior to license renewal.
Which of the following is TRUE regarding the Which is an ACCURATE statement regarding the
application and renewal of the limited lines List of Approved Surplus Lines Insurers?
automobile insurance agent license? 1.
1. Participation in LASLI is mandatory and all
The fees and process are the same as for a approved non admitted insurers are on the list.
personal lines licensee. 2.
2. Surplus lines insurers that are not on the list are
,CA Property and Casualty Insurance Practice Exam Test
Questions with Answers 100% Pass
unapproved for broker use.
3.
The same rules apply for U.S. domiciled and non ALL of the following are examples of open
U.S. domiciled carriers. policies EXCEPT
4. 1.
Eligible carriers do not need to file documents market value.
with the California Department of Insurance. - 2.
ANSWER -4. Eligible carriers do not need agreed value.
to file documents with the California Department 3.
of Insurance. actual cash value.
4.
replacement value. - ANSWER -2. agreed
value.
What 2 different types of areas are served by the
California Fair Access to Insurance
Responsibilities plan?
1. It is unlawful to do any of the following EXCEPT
Poor and alien. 1.
2. knowingly assist, abet, conspire with, or solicit a
Earthquake prone and rural. person in an unlawful act under this section of the
3. insurance code.
War zones and high crime. 2.
4. make or cause to made a knowingly false or
Brush fire risk and inner city. - ANSWER -4. fraudulent or material representation for the
Brush fire risk and inner city. purpose of obtaining or denying any
compensation.
3.
make or cause to made a knowingly false or
Except in a case where the property is being fraudulent or material representation for the
held as a carrier or depository, what is the purpose of encouraging an injured worker to
insurable interest is measured by? claim benefits.
1. 4.
The size of the premium. present or cause to be presented a knowingly
2. false or fraudulent written or oral material
Fair market value of the property. statement in support of, or in opposition to, a
3. claim for compensation. - ANSWER -3.
The contingent or expectant value to the insured. make or cause to made a knowingly false or
4. fraudulent or material representation for the
The extent to which the insured would be purpose of encouraging an injured worker to
damnified by loss or injury to the property. - claim benefits.
ANSWER -4. The extent to which the
insured would be damnified by loss or injury to
the property.
All of the following are PRINCIPAL rating factors
in determining automobile insurance premiums
, CA Property and Casualty Insurance Practice Exam Test
Questions with Answers 100% Pass
EXCEPT
1.
the insured's driving safety record.
2. Under the California Vehicle Code all of the
the number of miles driven annually. following are acceptable to satisfy the Financial
3. Responsibility requirement EXCEPT
the zip code where the vehicle is housed. 1.
4. a DMV-issued self-insurance certificate.
the years of driving experience the insured has. -2.
ANSWER -3. the zip code where the a motor vehicle liability insurance coverage.
vehicle is housed. 3.
a cash deposit of $35,000 with the Department of
Motor Vehicles.
4.
All of the following are taken into consideration a company with an escrow account that is
for California Automobile Assigned Risk Program licensed to do business in California. -
eligibility for applicants EXCEPT ANSWER -4. a company with an escrow
1. account that is licensed to do business in
the education of the applicant. California.
2.
the driving record of the applicant.
3.
the mental and physical health of the applicant. Which is NOT a duty of the Workers
4. Compensation Bureau?
any criminal history or convictions of the 1.
applicant. - ANSWER -1. the education of Inspect risks for classification or rating purposes.
the applicant. 2.
Determine which claims are approved and which
are denied.
3.
All of the following are duties of a Managing Provide reliable statistics and rating information
General Agent EXCEPT used to help establish premiums.
1. 4.
delivering policies to the insured. Examine policies and other evidences of
2. insurance to check for compliance with the law. -
accepting or declining risk of applicants. ANSWER -2. Determine which claims are
3. approved and which are denied.
appointing, supervising and terminating agents
within the territory.
4.
collecting premiums from brokers and agents Which circumstances in a pretext interview
and remitting them to the insurer. - determine if the questions are permissible?
ANSWER -1. delivering policies to the 1.
insured. When an insured is questioned prior to the
application to determine the best
