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Practice Exam Question & Answers ( Latest
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. A Special Surplus Line Broker is allowed to place coverage with a non- admitted insurer for all the following EXCEPT
aircraft insurance.
Practice Exam Question & Answers ( Latest
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. 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.
Practice Exam Question & Answers ( Latest
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. What 2 different types of areas are served by the California Fair Access to Insurance Responsibilities plan?
Poor and alien.
Practice Exam Question & Answers ( Latest
Earthquake prone and rural.
War zones and high crime.
Brush fire risk and inner city. - CORRECT ANSWER ✔✔4. Brush fire risk and inner city. 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.
Practice Exam Question & Answers ( Latest
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. 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.
Practice Exam Question & Answers ( Latest
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. 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.
Practice Exam Question & Answers ( Latest
Determine which claims are approved and which are denied.
Provide reliable statistics and rating information used to help establish premiums.
Examine policies and other evidences of insurance to check for compliance with the law. - CORRECT ANSWER ✔✔2. Determine which claims are approved and which are denied. Which circumstances in a pretext interview determine if the questions are permissible?
When an insured is questioned prior to the application to determine the best recommendations for coverage.
When an insured is consulted by a person who hides his true identity on purpose when fraud for a claim is suspected.
When questions are asked to help underwriting decide on coverage for the insured when health problems are suspected.
Practice Exam Question & Answers ( Latest
When questions are posed by a person who refuses to identify himself or his relation to the company prior to a policy being underwritten. - CORRECT ANSWER ✔✔2. When an insured is consulted by a person who hides his true identity on purpose when fraud for a claim is suspected. Which of the following provisions of free insurance offered as an incentive to purchase or rent property is TRUE?
It is permitted with no charge.
It requires a separate charge or fee.
If offered as a guarantee of the performance of goods, it is prohibited.
If issued by credit unions or with newspaper subscriptions, it is limited under Statute 777.2. - CORRECT ANSWER ✔✔2. It requires a separate charge or fee
Practice Exam Question & Answers ( Latest
The importance of the facts to the insurer and insured in making an underwriting decision.
The probable and reasonable influence of the facts upon the party to whom the communication is due.
The certainty that material provided to the insurer is truthful in all manners regardless of any mitigating circumstances. - CORRECT ANSWER ✔✔3. The probable and reasonable influence of the facts upon the party to whom the communication is due. To which person or organization does a public insurance adjuster promote and represent?
the insured
the insurance company
the insurance commissioner
Practice Exam Question & Answers ( Latest
the insurance agent - CORRECT ANSWER ✔✔1. the insured How does an "open" policy differ from a "valued" policy?
An open policy is able to protect against perils not specified in the policy.
A valued policy is designed to have a greater monetary value than an open policy.
The terms of an open policy are open to interpretation, while a valued policy is very precise.
An open policy has a value to be determined, while a valued policy protects for a specific amount. - CORRECT ANSWER ✔✔4. An open policy has a value to be determined, while a valued policy protects for a specific amount. If fiduciary funds are received by any licensee, the funds shall be maintained in any of the following EXCEPT
Practice Exam Question & Answers ( Latest
A Natural Disaster Insurance encompassing all types of natural disasters covering earthquakes, floods, tornados, etc.
All Homeowners Insurance policies include specified sections of earthquake coverage. - CORRECT ANSWER ✔✔2. A stand-alone Earthquake Insurance policy specifically insuring against loss caused by land subsidence. What is the purpose of the California Fair Access to Insurance Requirements program?
to provide superior coverage for California property owners
to ensure comparable rates between insurance companies
to manage taxpayer monies set aside to subsidize insurance for the poor
to help property owners who are unable to obtain coverage through the private sector on their own - CORRECT ANSWER ✔✔4. to help
Practice Exam Question & Answers ( Latest
property owners who are unable to obtain coverage through the private sector on their own No rate shall be approved or remain in effect for the following reasons EXCEPT
the rate is excessive.
the rate is inadequate.
the rate is unfairly discriminatory.
the rate is based on actuary principles. - CORRECT ANSWER ✔✔4. the rate is based on actuary principles. "Notice of legal action" can mean all of the following EXCEPT
notice of action commenced against the insurer with respect to a claim.
notice of action against the insured received by the insurer.
Practice Exam Question & Answers ( Latest
Which of the following modification can be made under a standard fire policy?
The insured can sign a waiver accepting lesser coverage.
The insurance commissioner can approve the variance in coverage.
The coverage can substantially be equal to or more favorable to the insured.
The insurer can offer the proposed insured lesser coverage, for a lower premium rate. - CORRECT ANSWER ✔✔3. The coverage can substantially be equal to or more favorable 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
the terms of a policy issued.
the future dividends payable.
Practice Exam Question & Answers ( Latest
the specific contract language.
the benefits or privileges promised. - CORRECT ANSWER ✔✔3. the specific contract language Which is TRUE regarding a "valued" policy?
A market value policy is an example of a valued policy.
A valued policy specifies the coverage amount of the policy.
A valued policy is the only type of policy that builds a cash value.
A valued policy generally costs more than replacement value because it has a specific amount. - CORRECT ANSWER ✔✔2. A valued policy specifies the coverage amount of the policy. Who must be able to inspect records of insurance transactions made available by agent-brokers at any time?
