CA PROPERTY AND CASUALTY INSURANCE PRACTICE

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CA PROPERTY AND CASUALTY INSURANCE PRACTICE

EXAM Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -75 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: Which group of people is offered additional protection by the Unfair Practices Act that regulates trade practices in the business of insurance?

1.victims of domestic abuse 2.victims of natural disasters 3.veterans injured overseas 4.survivors of the Holocaust

Answer:

• survivors of the Holocaust

Question 2: In conducting the business and affairs of the State Compensation Insurance Fund, the president of the fund may do any of the following EXCEPT 1.enter into contracts of workers' compensation insurance.

2.

sell annuities covering compensation benefits.

3.sell life insurance covering compensation benefits.

4.reinsurance any risk or any part thereof.

Answer:

• sell life insurance covering compensation benefits.

Question 3: Which of the following is TRUE regarding who qualifies for coverage under the California Fair Access to Insurance Requirements plan?

1.Any person who is unable to obtain basic property insurance through normal channels.

2.Any person who qualifies will receive superior coverage to other forms of property insurance.

3.Any person who does NOT have an insurable interest in a property can participate in the FAIR plan.

4.Any person who qualifies will have the inspection automatically waived if they are a FAIR plan participant.

Answer:

• Any person who is unable to obtain basic property insurance through normal channels.

Question 4: Which of the following is TRUE regarding continuing education requirements of an agent or broker?

1.Any licensee shall satisfactorily complete 24 hours of instruction prior to license renewal.

2.Any licensee in good standing for 10 years may apply for exemption to the continuing education requirement if reputation has been proven.

3.An agent or broker licensed in life and health requires more continuing education hours than an agent or broker licensed in property and casualty.

4.A licensee who is 65 years or older shall be exempt from continuing education hours if reputation of agent or broker is in good standing for 25 years.

Answer:

• Any licensee shall satisfactorily complete 24 hours of instruction prior to license renewal.

Question 5: All of the following are taken into consideration for California Automobile Assigned Risk Program eligibility for applicants EXCEPT 1.the education of the applicant.

2.the driving record of the applicant.

3.the mental and physical health of the applicant.

4.any criminal history or convictions of the applicant.

Answer:

• the education of the applicant.

Question 6: All of the following are reasons earthquake policy deductibles are MORE FAVORABLE than commonly used property deductibles EXCEPT 1.the personal property deductible is waived once the dwelling deductible is met.

2.only the earthquake policy will cover for damages due to an earthquake once the deductible is met.

3.the earthquake deductible is often 10 to 15 percent higher than for other types of property coverage.

4.no deductible is required for eligibility to be triggered if the earthquake policy claim exceeds the deductible by 100%.

Answer:

• the earthquake deductible is often 10 to 15 percent higher than for other types of property coverage.

Question 7: While both work with an insurer, how does an "Insurance broker" differ from an "insurance agent"?

1.The broker gets paid by commission, but the agent does not.

2.The broker does not transact on behalf of an insurer, while the agent does.

3.The broker has to be licensed, but the agent meets less stringent requirements.

4.The broker is unable to provide the same competitive prices that an agent provides.

Answer:

• The broker does not transact on behalf of an insurer, while the agent does.

Question 8: All of the following are requirements for determining an area that qualifies for Low Cost Automobile Insurance EXCEPT 1.the number of automobile accidents that occur within the county.

2.the number or percentage of low income people within the county.

3.the number or percentage of uninsured motorists within the county.

4.the availability of affordable insurance through private insurers within the county.

Answer:

• the number of automobile accidents that occur within the county.

Question 9: When should an agent provide an applicant the effective date of coverage, if known, or the circumstances under which coverage will be effective?

1.when a proposal is presented 2.at the time underwriting has been completed