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CALIFORNIA PROPERTY AND CASUALTY INSURANCE EXAM QUESTIONS AND ANSWERS 100% PASS, Exams of Financial Economics

Bryant and Stratton College-AlbanyFinancial Economics

CALIFORNIA PROPERTY AND CASUALTY INSURANCE EXAM QUESTIONS AND ANSWERS 100% PASS

Typology: Exams

2024/2025

Available from 06/17/2025

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CALIFORNIA PROPERTY AND CASUALTY INSURANCE
EXAM QUESTIONS AND ANSWERS 100% PASS
What is the required rate discount under a Good Driver Discount policy? - โœ”โœ” - 20%
below the rate the insured would have been otherwise charged for the same coverage
All the following are authorized activities for the Limited Automobile Insurance Agent
EXCEPT if the agent - โœ”โœ” - Charges and collects a brokers fee for service
What is the procedure for refusing uninsured motorist coverage in a liability policy? -
โœ”โœ” - Prior to issuance or renewal, the insured may state in writing that they do not want
the coverage
How many classes of insurance are defined under California Insurance Law, including
"miscellaneous" and "reserved" - โœ”โœ” - There are a total of 20 classes of insurance
defined under California Law, with many sub-classes.
When can a person who sells real property require the use of a specific insurance
agent, broker or solicitor? - โœ”โœ” - A buyer is always able to choose their own insurance
representative
All the following are requirements for determining an area that qualifies for Low Cost
Automobile Insurance EXCEPT - โœ”โœ” - The number of auto accidents that occur within
the country
Which of the following describes a contract of reinsurance? - โœ”โœ” - The first insurer
issues insurance to compensate another insurer for losses on contracts issued by that
second insurer
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Download CALIFORNIA PROPERTY AND CASUALTY INSURANCE EXAM QUESTIONS AND ANSWERS 100% PASS and more Exams Financial Economics in PDF only on Docsity!

CALIFORNIA PROPERTY AND CASUALTY INSURANCE

EXAM QUESTIONS AND ANSWERS 100% PASS

What is the required rate discount under a Good Driver Discount policy? - โœ”โœ” - 20% below the rate the insured would have been otherwise charged for the same coverage All the following are authorized activities for the Limited Automobile Insurance Agent EXCEPT if the agent - โœ”โœ” - Charges and collects a brokers fee for service What is the procedure for refusing uninsured motorist coverage in a liability policy? - โœ”โœ” - Prior to issuance or renewal, the insured may state in writing that they do not want the coverage How many classes of insurance are defined under California Insurance Law, including "miscellaneous" and "reserved" - โœ”โœ” - There are a total of 20 classes of insurance defined under California Law, with many sub-classes. When can a person who sells real property require the use of a specific insurance agent, broker or solicitor? - โœ”โœ” - A buyer is always able to choose their own insurance representative All the following are requirements for determining an area that qualifies for Low Cost Automobile Insurance EXCEPT - โœ”โœ” - The number of auto accidents that occur within the country Which of the following describes a contract of reinsurance? - โœ”โœ” - The first insurer issues insurance to compensate another insurer for losses on contracts issued by that second insurer

The managing General Agent negotiates and binds ceding Insurance on behalf of whom? - โœ”โœ” - The insurer All of the following are duties of a Managing General Agent EXCEPT - โœ”โœ” - Delivering policies to the insured Who is able to place business through the California Automobile Assessed Risk Program? - โœ”โœ” - Only agent/brokers licensed in fire and Casualty who have also been certified through CAARP Can a lender, as a condition of making a loan, require that any insurance be placed through a particular insurance agent or broker? - โœ”โœ” - The loan recipient may always select a particular agent or broker of their choosing All of the following apply to "Approved of Insurance Rates" EXCEPT - โœ”โœ” - A commissioner shall notify the public of a rate change after it has been approved Who must be able to inspect records of insurance transactions made availability by agent-brokers at any time? - โœ”โœ” - The insurance commissioner All the following conditions must be met before a surplus lines broker may place insurance with a nonadmitted insurer EXCEPT - โœ”โœ” - That the rate for the places insurance must be the lowest optio In conducting the business and affairs of the State Compensation Insurance Fund, the president of the fund may do any of the following EXCEPT - โœ”โœ” - Sell life insurance covering compensation benefits

To which person or organization does a public insurance adjuster promote and represent? - โœ”โœ” - The insured Under the California Vehicle Code all of the following are acceptable to satisfy the Financial Responsibility requirement EXCEPt - โœ”โœ” - A company with an escrow account that is licensed to do business in California All the following are taken into consideration for California Automobile Assigned Risk Program eligibility for applicants EXCEPT - โœ”โœ” - The education of the applicant Where must the address be printed for the principal office that is required for every broker agent and resident insurance casualty broker-agent? - โœ”โœ” - Applicants for license and renewals What is the coverage limit offered by the California Earthquake Authority for condominiums? - โœ”โœ” - The coverage is limited to $25,000 if the value is $135,000 or less, and $50,000 is the value is over $135, What 2 different types of areas are served by the California Fair Access to Insurance Interest is measured by? - โœ”โœ” - The extent to which the insured would be damnified by loss or injury to the property All of the following are examples of open policies EXCEPT - โœ”โœ” - Agreed value No rate shall be approved or remain in effect for the following reasons EXCEPT - โœ”โœ” - The rate is based on actuary principles All of the following are requirements to offer earthquake insurance with residential property coverage EXCEPT - โœ”โœ” - A separate policy to cover the earthquake is required, an endorsement is insufficient

What document must be provided to the insured prior to any residential insurance policy being issued or renewed? - โœ”โœ” - A copy of the California residential property disclosure statement Which type of coverage protects against loss caused by earth movement? - โœ”โœ” - A stand-alone earthquake insurance policy specifically insuring against loss caused by land subsidence Who is responsible for notifying the public of a proposed rate increase - โœ”โœ” - The insurance commissioner Which is TRUE regarding expectant or contingent interest? - โœ”โœ” - Expectant or contingent interest does NOT constitute insurance interest Which of the following is TRUE regarding continuing education requirements of an agent or broker? - โœ”โœ” - Any licensee shall satisfactorily complete 24 hrs of instruction prior to license renewal "Notice is legal action" can mean all of the following EXCEPT - โœ”โœ” - Notice of action against the agent Which of the following provisions of free insurance offered as an incentive to purchase or rent property is TRUE - โœ”โœ” - It requires a separate charge or fee Which is an INACCURATE statement of the purpose and intent of the insurance information and privacy act? - โœ”โœ” - The act permits disclosure of insurance underwriting Information and claim history records

Which circumstances in a pretext interview determine if the questions are permissible? - โœ”โœ” - When the insured is consulted by a person who hides his true identity on purpose when fraud for a claim is suspected Which of the following is TRUE regarding nonadmitted insurers - โœ”โœ” - Acting as an agent for a nonadmitted insurer is considered a misdemeanor Which group is offered additional protection by the Unfair Practices Act that regulates trade practices in the business of insurance? - โœ”โœ” - Survivors of the holocaust What is the maximum fine for a person who transacts insurance without a valid license?

  • โœ”โœ” - $50,000 and/or imprisonment for a period not exceeding one year All of the following are to be specified in an insurance policy EXCEPT - โœ”โœ” - The financial rating of the insured It is unlawful to do any of the following EXCEPT - โœ”โœ” - Make or caused to made a knowingly false or fraudulent or material representation for the purpose of encouraging an injured worker to claim benefits Which is considered no public personal information as defined by the California Financial Code? - โœ”โœ” - Tax return Which form of negotiation is covered h see the definition of "transact" as applied to insurance? - โœ”โœ” - Negotiations preliminary to execution Which of the following may be insured against? - โœ”โœ” - Wagering losses

What are the requirements for notices required by any provision of the insurance code to a person unless expressly provides otherwise? - โœ”โœ” - They should be sent to a mailing notice at their residence or place of business What does concealment, whether intentional or unintentional, entitle the injured party to? - โœ”โœ” - The insurer may rescind the contract on the basis of misrepresentation, concealment, or fraud by the insured. If fiduciary funds are received by any licensee, the funds shall by maintained in any of the following EXCEPT - โœ”โœ” - Bonds issued in all 50 states of the United States Which of the following must be prominently displayed so that it can be readily inspected on the license? - โœ”โœ” - Currency and capacity When can a rate be denied by the department? - โœ”โœ” - When it is inadequate and excessive Which of the following is TRUE regarding the application and renewal of the limited lines Automobile insurance agent license? - โœ”โœ” - The fees and process are the same as for a personal lines licensee All of the following are reasons employers liability insurance is needed in addition to workers compensation insurance EXCEPT - โœ”โœ” - To pay medical bills What is the primary function of the CAARP? - โœ”โœ” - To put people who have trouble obtaining insurance in touch with insurers who may be required by law to insure them In order for an insurer to contract with the State Compensation Insurance Fund it must meet all of the following criteria EXCEPT - โœ”โœ” - The insurer has met all ratio requirements for risk based capital (RBC)