CA PROPERTY AND CASUALTY
INSURANCE PRACTICE EXAM
QUESTIONS AND ANSWERS WITH
VERIFIED SOLUTIONS 100% CORRECT
RATED A+ NEWLY UPDATED 2025/2026
1. Which of the following is TRUE regarding who qualifies for coverage under
the California FAIR (Fair Access to Insurance Requirements) Plan?
A) Any person who is unable to obtain basic property insurance through normal
channels.
B) Any person who qualifies will receive superior coverage to traditional property
policies.
C) Anyone without an insurable interest in the property may apply.
D) All applicants automatically bypass the inspection process.
✔✔ Correct Answer: A) Any person who is unable to obtain basic property
insurance through normal channels.
2. A Special Surplus Line Broker is allowed to place insurance with a non-
admitted carrier for all the following EXCEPT:
A) Aircraft-related insurance.
B) Coverage for interstate railroad commerce.
C) Insurance on transportation via bridges and tunnels.
D) Marine cargo policies for import/export activities.
✔✔ Correct Answer: C) Insurance on transportation via bridges and tunnels.
3. Which of the following is TRUE regarding the application and renewal
process for a limited lines automobile insurance agent license in California?
A) The process and fees are identical to those of a personal lines license.
B) There are no fees involved in applying or renewing.
,C) Limited lines agents are not eligible to become property or casualty agents.
D) The licensing exam excludes ethics content.
✔✔ Correct Answer: A) The process and fees are identical to those of a personal
lines license.
4. Which of the following is TRUE about continuing education (CE)
requirements for California insurance agents and brokers?
A) Every licensee must complete 24 hours of CE before renewal.
B) Licensees with 10 years of good standing may request an exemption.
C) Life and health licensees must complete more hours than property and casualty
licensees.
D) CE requirements are waived automatically for agents over age 65.
✔✔ Correct Answer: A) Every licensee must complete 24 hours of CE before
renewal.
5. Which of the following is an accurate statement about the List of Approved
Surplus Lines Insurers (LASLI) in California?
A) All non-admitted insurers are required to be on the LASLI list.
B) Brokers cannot use carriers that are not on the list.
C) The approval process is the same for U.S. and foreign insurers.
D) Approved surplus lines insurers are not required to submit filings to the
California Department of Insurance.
✔✔ Correct Answer: D) Approved surplus lines insurers are not required to
submit filings to 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. - ANSWER✔✔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. - ANSWER✔✔4. The extent to which the insured would be damnified by
loss or injury to the property.
ALL of the following are examples of open policies EXCEPT
1.
market value.
2.
agreed value.
3.
actual cash value.
, 4.
replacement value. - ANSWER✔✔2. agreed value.
It is unlawful to do any of the following EXCEPT
1.
knowingly assist, abet, conspire with, or solicit a person in an unlawful act under
this section of the insurance code.
2.
make or cause to made a knowingly false or fraudulent or material representation
for the purpose of obtaining or denying any compensation.
3.
make or cause to made a knowingly false or fraudulent or material representation
for the purpose of encouraging an injured worker to claim benefits.
4.
present or cause to be presented a knowingly false or fraudulent written or oral
material statement in support of, or in opposition to, a claim for compensation. -
ANSWER✔✔3. make or cause to made a knowingly false or fraudulent or material
representation for the purpose of encouraging an injured worker to claim benefits.
All of the following are PRINCIPAL rating factors in determining automobile
insurance premiums EXCEPT
1.
the insured's driving safety record.
2.
the number of miles driven annually.
3.
the zip code where the vehicle is housed.
INSURANCE PRACTICE EXAM
QUESTIONS AND ANSWERS WITH
VERIFIED SOLUTIONS 100% CORRECT
RATED A+ NEWLY UPDATED 2025/2026
1. Which of the following is TRUE regarding who qualifies for coverage under
the California FAIR (Fair Access to Insurance Requirements) Plan?
A) Any person who is unable to obtain basic property insurance through normal
channels.
B) Any person who qualifies will receive superior coverage to traditional property
policies.
C) Anyone without an insurable interest in the property may apply.
D) All applicants automatically bypass the inspection process.
✔✔ Correct Answer: A) Any person who is unable to obtain basic property
insurance through normal channels.
2. A Special Surplus Line Broker is allowed to place insurance with a non-
admitted carrier for all the following EXCEPT:
A) Aircraft-related insurance.
B) Coverage for interstate railroad commerce.
C) Insurance on transportation via bridges and tunnels.
D) Marine cargo policies for import/export activities.
✔✔ Correct Answer: C) Insurance on transportation via bridges and tunnels.
3. Which of the following is TRUE regarding the application and renewal
process for a limited lines automobile insurance agent license in California?
A) The process and fees are identical to those of a personal lines license.
B) There are no fees involved in applying or renewing.
,C) Limited lines agents are not eligible to become property or casualty agents.
D) The licensing exam excludes ethics content.
✔✔ Correct Answer: A) The process and fees are identical to those of a personal
lines license.
4. Which of the following is TRUE about continuing education (CE)
requirements for California insurance agents and brokers?
A) Every licensee must complete 24 hours of CE before renewal.
B) Licensees with 10 years of good standing may request an exemption.
C) Life and health licensees must complete more hours than property and casualty
licensees.
D) CE requirements are waived automatically for agents over age 65.
✔✔ Correct Answer: A) Every licensee must complete 24 hours of CE before
renewal.
5. Which of the following is an accurate statement about the List of Approved
Surplus Lines Insurers (LASLI) in California?
A) All non-admitted insurers are required to be on the LASLI list.
B) Brokers cannot use carriers that are not on the list.
C) The approval process is the same for U.S. and foreign insurers.
D) Approved surplus lines insurers are not required to submit filings to the
California Department of Insurance.
✔✔ Correct Answer: D) Approved surplus lines insurers are not required to
submit filings to 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. - ANSWER✔✔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. - ANSWER✔✔4. The extent to which the insured would be damnified by
loss or injury to the property.
ALL of the following are examples of open policies EXCEPT
1.
market value.
2.
agreed value.
3.
actual cash value.
, 4.
replacement value. - ANSWER✔✔2. agreed value.
It is unlawful to do any of the following EXCEPT
1.
knowingly assist, abet, conspire with, or solicit a person in an unlawful act under
this section of the insurance code.
2.
make or cause to made a knowingly false or fraudulent or material representation
for the purpose of obtaining or denying any compensation.
3.
make or cause to made a knowingly false or fraudulent or material representation
for the purpose of encouraging an injured worker to claim benefits.
4.
present or cause to be presented a knowingly false or fraudulent written or oral
material statement in support of, or in opposition to, a claim for compensation. -
ANSWER✔✔3. make or cause to made a knowingly false or fraudulent or material
representation for the purpose of encouraging an injured worker to claim benefits.
All of the following are PRINCIPAL rating factors in determining automobile
insurance premiums EXCEPT
1.
the insured's driving safety record.
2.
the number of miles driven annually.
3.
the zip code where the vehicle is housed.
