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Property and Casualty Insurance Exam
Questions and Answers
What is the state of California's pre-licensing requirements?
Ans: -20 hours for casualty
-20 hours for property
-12 hours of Ethics and the California Insurance Code
-1 hour dedicated to anti-fraud training
-Fingerprinting and a background check
-Pass the licensing exam
-Apply for license
How often does the California Department of Insurance check
domestic insurers for solvency?
Ans: Every 3 Years
How long is a Property and Casualty (P&C) insurance license valid
for?
Ans: 2 years
What is Errors and Omissions (E&O) insurance?
Ans: Protects businesses and professionals from claims of negligence,
errors, or omissions in their services.
How many hours of CE are required to keep your P&C license
active?
Ans: 24 hours every two-year license term
Does California allow for CE rollovers?
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, 2 | Page
Ans: Yes, with the exception of ethics hours.
What is a Line of Authority (LOA)?
Ans: A specific category of insurance that an agent or producer is
licensed to sell.
What is an investigative consumer report?
Ans: A type of background check that gathers information about a
person's character, reputation, personal characteristics, and lifestyle
through interviews with people who know them.
What is the process in ongoing an investigative consumer report?
Ans: 3 days notice before the investigation starts.
5 days to share the results of the report (if requested).
What is the purpose of the Fair Credit Reporting Act?
Ans: To protect consumers from against the circulation of inaccurate or
obsolete personal financial information.
What is the consequence of violating the Fair Credit Reporting
Act? (ie. using credit information obtained for personal use)
Ans: $2,500 federal fine
What does it mean if an insurance company is solvent?
Ans: Signifies an insurance company's financial health and stability,
ensuring it can fulfill its promises to policyholders.
What does it mean if an insurance company is insolvent?
Ans: Signifies an insurance company is unable to meet its financial
obligations and pay its debts as they become due.
What is a domestic insurer?
Ans: An insurance company that is licensed to operate within the
specific state where it is chartered.
© 2025 All rights reserved
Property and Casualty Insurance Exam
Questions and Answers
What is the state of California's pre-licensing requirements?
Ans: -20 hours for casualty
-20 hours for property
-12 hours of Ethics and the California Insurance Code
-1 hour dedicated to anti-fraud training
-Fingerprinting and a background check
-Pass the licensing exam
-Apply for license
How often does the California Department of Insurance check
domestic insurers for solvency?
Ans: Every 3 Years
How long is a Property and Casualty (P&C) insurance license valid
for?
Ans: 2 years
What is Errors and Omissions (E&O) insurance?
Ans: Protects businesses and professionals from claims of negligence,
errors, or omissions in their services.
How many hours of CE are required to keep your P&C license
active?
Ans: 24 hours every two-year license term
Does California allow for CE rollovers?
© 2025 All rights reserved
, 2 | Page
Ans: Yes, with the exception of ethics hours.
What is a Line of Authority (LOA)?
Ans: A specific category of insurance that an agent or producer is
licensed to sell.
What is an investigative consumer report?
Ans: A type of background check that gathers information about a
person's character, reputation, personal characteristics, and lifestyle
through interviews with people who know them.
What is the process in ongoing an investigative consumer report?
Ans: 3 days notice before the investigation starts.
5 days to share the results of the report (if requested).
What is the purpose of the Fair Credit Reporting Act?
Ans: To protect consumers from against the circulation of inaccurate or
obsolete personal financial information.
What is the consequence of violating the Fair Credit Reporting
Act? (ie. using credit information obtained for personal use)
Ans: $2,500 federal fine
What does it mean if an insurance company is solvent?
Ans: Signifies an insurance company's financial health and stability,
ensuring it can fulfill its promises to policyholders.
What does it mean if an insurance company is insolvent?
Ans: Signifies an insurance company is unable to meet its financial
obligations and pay its debts as they become due.
What is a domestic insurer?
Ans: An insurance company that is licensed to operate within the
specific state where it is chartered.
© 2025 All rights reserved
