California property and casualty exam

California property and casualty exam Questions and Answers (Verified Answers) 555 Questions

Question 1: Which of the following is TRUE regarding who

qualifies for coverage under the California Fair Access to Insurance Requirements plan?

• Any person who is unable to obtain basic property

insurance through normal channels.

• Any person who qualifies will receive superior coverage to

other forms of property insurance.

• Any person who does NOT have an insurable interest in a

property can participate in the FAIR plan.

• Any person who qualifies will have the inspection

automatically waived if they are a FAIR plan participant.

CORRECT ANSWER : 1. Any person who is unable to

obtain basic property insurance through normal channels.

Question 2: A Special Surplus Line Broker is allowed to place

coverage with a non-admitted insurer for all the following

EXCEPT

• aircraft insurance.
• interstate commerce involving railroads.
• transportation involving bridges and tunnels.
• insurance against perils of navigation for import and

exporting of goods.

CORRECT ANSWER : 3. transportation involving bridges

and tunnels.

Question 3: Which of the following is TRUE regarding the

application and renewal of the limited lines automobile insurance agent license?

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

licensee.

• There are no fees for filing the application or renewal

applications for the license.

• The limited lines agent is ineligible to become a property or

casualty broker-agent.

• The agent must pass an examination on the insurance code

and products, but not ethics.

CORRECT ANSWER : 1. The fees and process are the same

as for a personal lines licensee.

Question 4: Which of the following is TRUE regarding

continuing education requirements of an agent or broker?

• Any licensee shall satisfactorily complete 24 hours of

instruction prior to license renewal.

• Any licensee in good standing for 10 years may apply for

exemption to the continuing education requirement if reputation has been proven.

• An agent or broker licensed in life and health requires more

continuing education hours than an agent or broker licensed in property and casualty.

• 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.

CORRECT ANSWER : 1. Any licensee shall satisfactorily

complete 24 hours of instruction prior to license renewal.

Question 5: Which is an ACCURATE statement regarding the

List of Approved Surplus Lines Insurers?

• Participation in LASLI is mandatory and all approved non

admitted insurers are on the list.

• Surplus lines insurers that are not on the list are

unapproved for broker use.

• The same rules apply for U.S. domiciled and non U.S.

domiciled carriers.

• Eligible carriers do not need to file documents with the

California Department of Insurance.

CORRECT ANSWER : 4. Eligible carriers do not need to

file documents with the California Department of Insurance.

Question 6: What 2 different types of areas are served by the

California Fair Access to Insurance Responsibilities plan?

• Poor and alien.
• Earthquake prone and rural.
• War zones and high crime.
• Brush fire risk and inner city.