California Property and Casualty Insurance Exam questions with correct answers

What is the required rate discount under a Good Driver Discount policy? CORRECT ANSWER 20% below the rate the insured would have been otherwise charged for the same coverage All the following are authorized activities for the Limited Automobile Insurance Agent EXCEPT if the agent CORRECT ANSWER Charges and collects a brokers fee for service What is the procedure for refusing uninsured motorist coverage in a liability policy? CORRECT ANSWER Prior to issuance or renewal, the insured may state in writing that they do not want the coverage How many classes of insurance are defined under California Insurance Law, including "miscellaneous" and "reserved" CORRECT ANSWER There are a total of 20 classes of insurance defined under California Law, with many sub-classes. When can a person who sells real property require the use of a specific insurance agent, broker or solicitor? CORRECT ANSWER A buyer is always able to choose their own insurance representative All the following are requirements for determining an area that qualifies for Low Cost Automobile Insurance EXCEPT CORRECT ANSWER The number of auto accidents that occur within the country Which of the following describes a contract of reinsurance? CORRECT ANSWER The first insurer issues insurance to compensate another insurer for losses on contracts issued by that second insurer