CALIFORNIA PERSONAL LINES BROKER TEST

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CALIFORNIA PERSONAL LINES BROKER TEST

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -100 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: A-16. Loss control refers to:

Answer:

Taking the necessary precautions that will reduce the risk of a loss.Question 2: A-32. Punishment for twisting or misrepresentation would be:

Answer:

$25,000 fine or 1 year in jail.Question 3: C-14. In order to update, add or change a statute a bill must be passed by the legislature and then presented to the governor. If the statute is passed, it will go into effect:

Answer:

On the next January 1st.Question 4: B-28. There are no binders issued in: life insurance in health insurance excess of 1 million Any of the above

Answer:

Binders are not issued in the class of life or disability or in excess of 1 million.

Question 5: B-1. In which of the following marketing distribution systems does the agent represent more than one insurer and more than one company?Direct mailing system Direct writing system Exclusive agency Independent agency

Answer:

An independent agency Question 6: A-23. When a right or privilege has been given up, a party cannot reassert that right or privilege. The process of preventing the party from reasserting that right or privilege is

known as:

Answer:

Estoppel Question 7: A-25. Examples of tort law include all of the following EXCEPT: Libel and slander Bodily injury Personal injury Breach of contract

Answer:

Breach of contract.Question 8: A-8. The term loss exposure refers to:

Answer:

The possibility of a loss.Question 9: C-16. If a license is in the possession of the insurer or the licensee`s employer, the

licensee may surrender his/her license:

Answer:

After written notice is delivered to the Commissioner.Question 10: B-20. Any person who transacts insurance without a valid license is guilty of a misdemeanor, punishable by a fine not exceeding ______.

Answer:

$50,000

Question 11: C-23. Every licensee shall prominently put their license number on all of the

following except:

Answer:

Phone book listing in the white pages.Question 12: C-18. What is the difference between an admitted and a non-admitted insurer?

Answer:

An admitted insurer is a company that has met all of the qualifications designed by the DOI and has received a Certificate of Authority from the DOI to transact insurance in California, whereas a non-admitted insurer has not complied or been denied.Question 13: A-29. Type of loss exposure pertaining to land and structures attached to it is:

Answer:

Property loss exposure.Question 14: C-31. Commissioner can suspend a permanent license without a hearing, except:

Answer:

Client co-signing a loan.Question 15: A-3. The uncertainty or chance of a loss occurring is known as:

Answer:

Risk Question 16: A-9. The degree of loss a person/organization faces from suits brought by a third

party refers to:

Answer:

Liability loss exposure.

Question 17: A-31. Which of the following is not a class of insurance?

Casualty Fire Marine Auto

Answer:

Casualty is not a class of insurance.

Question 18: C-10. All of the following are examples of fiduciaries EXCEPT: Executors Administrators Corporate directors Vendor

Answer:

Vendor Question 19: A-7. The law of large numbers is a principal that basically says:

Answer:

The larger the amount of information gathered, the more reliable that information will be.

Question 20: B-30. Which of the following would not require a license?

Independent Adjuster Insurance Adjuster Public Adjuster All require a license

Answer:

Insurance adjuster.Question 21: B-24. Monitoring of existing risks is:

Answer:

Post-selection.Question 22: B-12. Errors and omissions is a type of liability insurance:

Answer:

That agents use to protect themselves if they give incorrect advice or information to a client.Question 23: C-15. A licensee may surrender his/her license:

Answer:

Upon written notice to the Department of Insurance at any time.Question 24: B-11. If an agent gives incorrect advice or unknowingly provides incorrect information to the client, which of the following liability insurance policies for nonmedical professionals is available to pay for losses or defend lawsuits that might be filed against him?Liability insurance Errors and Omissions Medical Insurance Nonadmitted