CALIFORNIA PROPERTY AND CASUALTY INSURANCE EXAM

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CALIFORNIA PROPERTY AND CASUALTY INSURANCE EXAM

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -74 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: All of the following are requirements to offer earthquake insurance with residential property coverage EXCEPT

Answer:

A separate policy to cover the earthquake is required, an endorsement is insufficient Question 2: Which is an INACCURATE statement of the purpose and intent of the insurance information and privacy act?

Answer:

The act permits disclosure of insurance underwriting Information and claim history records Question 3: Unless otherwise specified in the insurance contract, all of the following are TRUE regarding return of premium eXCEPT

Answer:

The premium is forfeited if the policy is cancelled Question 4: What is the maximum coverage allowed through the California Automobile Assigned Risk Program for bodily injury and death?

Answer:

The max coverage per accident is limited to $30,000 of all persons as a result of any one accident

Question 5: All of the following are TRUE regarding basic property insurance EXCEPT

Answer:

The comprehensive plan covers both automobiles and risks associated with farming Question 6: All the following conditions must be met before a surplus lines broker may place insurance with a nonadmitted insurer EXCEPT

Answer:

That the rate for the places insurance must be the lowest optio Question 7: Which of the following is TRUE regarding who qualifies for coverage under the California Fair Access to Insurance Requirements plan?

Answer:

Any person who is unable to obtain basic property insurance through normal channels Question 8: No rate shall be approved or remain in effect for the following reasons EXCEPT

Answer:

The rate is based on actuary principles Question 9: "Notice is legal action" can mean all of the following EXCEPT

Answer:

Notice of action against the agent Question 10: What must an individual do in order to act as an agent for a business entity or insurer offering limited lines automobile coverage?

Answer:

File a notice of appointment with the commissioner Question 11: What is the method used for placing business with the California Automobile Assigned Risk Program?

Answer:

The percentage of CAARP policies requires is equal to the percentage of regular insurance policies the insurer has issued within the state

Question 12: If fiduciary funds are received by any licensee, the funds shall by maintained in any of the following EXCEPT

Answer:

Bonds issued in all 50 states of the United States

Question 13: How can a licensee surrender any license for cancellation?

Answer:

By submitting written notice or by delivering the license to the commissioner Question 14: Which of the following is TRUE regarding the application and renewal of the limited lines Automobile insurance agent license?

Answer:

The fees and process are the same as for a personal lines licensee

Question 15: Which of the following is TRUE regarding nonadmitted insurers

Answer:

Acting as an agent for a nonadmitted insurer is considered a misdemeanor Question 16: Can a lender, as a condition of making a loan, require that any insurance be placed through a particular insurance agent or broker?

Answer:

The loan recipient may always select a particular agent or broker of their choosing

Question 17: Which of the following may be insured against?

Answer:

Wagering losses Question 18: What are the requirements for notices required by any provision of the insurance code to a person unless expressly provides otherwise?

Answer:

They should be sent to a mailing notice at their residence or place of business Question 19: Who must be able to inspect records of insurance transactions made availability by agent-brokers at any time?

Answer:

The insurance commissioner

Question 20: In order for an insurer to contract with the State Compensation Insurance Fund it must meet all of the following criteria EXCEPT

Answer:

The insurer has met all ratio requirements for risk based capital (RBC)

Question 21: What is a solicitor employed to do for a policy other than life?

Answer:

To aid a property and Casualty agent or broker in transacting insurance Question 22: What is the procedure for refusing uninsured motorist coverage in a liability policy?

Answer:

Prior to issuance or renewal, the insured may state in writing that they do not want the coverage Question 23: Which is an ACCURATE statement regarding the List of Approved Surplus Lines Insurers

Answer:

Eligible carriers do not need to file documents with the California Department of Insurance Question 24: The following are all penalties for unlawfully acting as an insurer without a certificate of authority EXCEPT

Answer:

The individual will be banned from practicing insurance for a period of 5 years Question 25: Which of the following must be prominently displayed so that it can be readily inspected on the license?

Answer:

Currency and capacity Question 26: Which of the following modification can be made under a standard fire policy?

Answer:

The coverage can substantially be equal or more favorable to the insured