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.

• 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.

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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.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.Question 9: 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 10: 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.

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• 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 11: All of the following are taken into consideration for California Automobile Assigned Risk Program eligibility for applicants EXCEPT

• the education of the applicant.
• the driving record of the applicant.
• the mental and physical health of the applicant.
• any criminal history or convictions of the applicant.

Correct Answer: 1. the education of the applicant.

Question 12: All of the following are duties of a Managing General Agent EXCEPT

• delivering policies to the insured.
• accepting or declining risk of applicants.
• appointing, supervising and terminating agents within the territory.
• collecting premiums from brokers and agents and remitting them to the insurer.

Correct Answer: 1. delivering policies to the insured.

Question 13: Under the California Vehicle Code all of the following are acceptable to satisfy the Financial Responsibility requirement EXCEPT

• a DMV-issued self-insurance certificate.
• a motor vehicle liability insurance coverage.
• a cash deposit of $35,000 with the Department of Motor Vehicles.
• a company with an escrow account that is licensed to do business in California.