CA Property and Casualty Insurance Practice Exam Latest Update 2024-2025 Questions and 100% Verified Correct Answers Guaranteed "Notice of legal action" can mean all of the following EXCEPT 1.notice of action commenced against the insurer with respect to a claim.
2.notice of action against the insured received by the insurer.
3.notice of action against the principal under a bond.
4.notice of action against the agent. - CORRECT ANSWER: 4. notice of action against the agent.
"Person" means all of the following EXCEPT 1.an association.
2.a corporation.
3.a business trust.
4.
an organizational trust. - CORRECT ANSWER: 4. an organizational trust.
- Which is TRUE regarding expectant or contingent interest?
1.Expectant or contingent interest constitutes insurable interest.
2.Expectant or contingent interest does NOT constitute insurable interest.
3.Expectant interest or contingent interest qualifies for insurable interest with a waiver.
4.Both are considered insurable interest, but for only 50% of the value. - CORRECT ANSWER: 2. Expectant or contingent interest does NOT constitute insurable interest.
A personal lines licensee is an agent-broker who is able to transact coverage for all of the following EXCEPT 1.personal aircraft.
2.earthquake and flood.
3.residential property.
4. 1 / 3
automobiles and recreational vehicles. - CORRECT ANSWER: 1. personal aircraft.
A Special Surplus Line Broker is allowed to place coverage with a non-admitted insurer for all the following EXCEPT 1.aircraft insurance.
2.interstate commerce involving railroads.
3.transportation involving bridges and tunnels.
4.insurance against perils of navigation for import and exporting of goods. - CORRECT
ANSWER: 3. transportation involving bridges and tunnels.
All of the following are a duty of an insurer in regards to claims on file and record documentation EXCEPT 1.maintaining claim data so that an insurer shall be able to provide the claim number, line of coverage, and other pertinent data.
2.recording the date the licensee received, date(s) the licensee processed and date the licensee transmitted or mailed every material and relevant document in the file.
3.maintaining any sales material, which had a material impact on the claims process.
4.maintaining claim files that are accessible, legible, and claim of duplication. - CORRECT ANSWER: 3. maintaining any sales material, which had a material impact on the claims process.
All of the following are cause for cancellation of an automobile policy EXCEPT 1.nonpayment of premium.
2.the suspension of the primary insured's driver's license 3.discovery of a criminal record for a felony.
4.
a substantial increase in the hazard insured against. - CORRECT ANSWER: 3.
discovery of a criminal record for a felony.
All of the following are duties of a Managing General Agent EXCEPT 1.delivering policies to the insured.
2.accepting or declining risk of applicants.
3. 2 / 3
appointing, supervising and terminating agents within the territory.
4.collecting premiums from brokers and agents and remitting them to the insurer. -
CORRECT ANSWER: 1. delivering policies to the insured.
All of the following are examples of misrepresentations that may not be made by an insurer, officer or agent thereof or an insurance broker or solicitor EXCEPT 1.the terms of a policy issued.
2.the future dividends payable.
3.the specific contract language.
4.
the benefits or privileges promised. - CORRECT ANSWER: 3. the specific contract
language
ALL of the following are examples of open policies EXCEPT 1.market value.
2.agreed value.
3.actual cash value.
4.
replacement value. - CORRECT ANSWER: 2. agreed value.
All of the following are included as definitions of "transact" as applied to insurance
EXCEPT
1.solicitation.
2.underwriting.
3.negotiations preliminary to execution.
4.
execution of a contract of insurance. - CORRECT ANSWER: 2. underwriting.
All of the following are permissible reasons for a consumer reporting agency to furnish motor vehicle, past claims, or credit reports EXCEPT 1.information for employment purposes.
2.a response to a court order or a subpoena issued by a Federal Grand Jury.
3.a request of a national news organization for an investigative story.
- / 3