CA Property and Casualty Insurance Practice Exam Correct and Verified Answers Graded A

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CA Property and Casualty Insurance Practice Exam Correct and Verified Answers Graded A

Question 1: All of the following are PRINCIPAL rating factors in determining automobile insurance premiums EXCEPT •

• the insured's driving safety record.

•

• the number of miles driven annually.

•

• the zip code where the vehicle is housed.

•

• the years of driving experience the insured has.

Correct Answer: 3. the zip code where the vehicle is housed.

Question 2: It is unlawful to do any of the following EXCEPT

•

• knowingly assist, abet, conspire with, or solicit a person in an unlawful act

under this section of the insurance code.•

• make or cause to made a knowingly false or fraudulent or material

representation for the purpose of obtaining or denying any compensation.•

• make or cause to made a knowingly false or fraudulent or material

representation for the purpose of encouraging an injured worker to claim benefits.•

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• present or cause to be presented a knowingly false or fraudulent written or

oral material statement in support of, or in opposition to, a claim for compensation.Correct Answer: 3. make or cause to made a knowingly false or fraudulent or material representation for the purpose of encouraging an injured worker to claim benefits.

Question 3: ALL of the following are examples of open policies EXCEPT

•

• market value.

•

• agreed value.

•

• actual cash value.

•

• replacement value.

Correct Answer: 2. agreed value.

Question 4: Except in a case where the property is being held as a carrier or depository, what is the insurable interest is measured by?•

• The size of the premium.

•

• Fair market value of the property.

•

• The contingent or expectant value to the insured.

•

• The extent to which the insured would be damnified by loss or injury to the

property.Correct Answer: 4. The extent to which the insured would be damnified by loss or injury to the property.

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Question 5: 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.

Correct Answer: 4. Brush fire risk and inner city.

Question 6: 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 7: Which of the following is TRUE regarding continuing education requirements of an agent or broker?•

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• 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 8: 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.