CA Property and Casualty Insurance Practice Exam Questions and answers, 100% Accurate.

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CA Property and Casualty Insurance Practice Exam Questions and answers, 100% Accurate. Which of the following is TRUE regarding who qualifies for coverage under the California Fair Access to In... surance Requirements plan? 1. Any person who is unable to obtain basic property insurance through normal channels. 2. Any person who qualifies will receive superior coverage to other forms of property insurance. 3. Any person who does NOT have an insurable interest in a property can participate in the FAIR plan. 4. Any person who qualifies will have the inspection automatically waived if they are a FAIR plan participant. - ✔✔-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 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. - ✔✔-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? 1. The fees and process are the same as for a personal lines licensee. 2. There are no fees for filing the application or renewal applications for the license. 3. The limited lines agent is ineligible to become a property or casualty broker-agent. 4. The agent must pass an examination on the insurance code and products, but not ethics. - ✔✔-1. The fees and process are the same as for a personal lines licensee. Which of the following is TRUE regarding continuing education requirements of an agent or broker? 1. Any licensee shall satisfactorily complete 24 hours of instruction prior to license renewal. 2. Any licensee in good standing for 10 years may apply for exemption to the continuing education requirement if reputation has been proven. 3. An agent or broker licensed in life and health requires more continuing education hours than an agent or broker licensed in property and casualty. 4. 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. - ✔✔-1. Any licensee shall satisfactorily complete 24 hours of instruction prior to license renewal. Which is an ACCURATE statement regarding the List of Approved Surplus Lines Insurers? 1. Participation in LASLI is mandatory and all approved non admitted insurers are on the list. 2. Surplus lines insurers that are not on the list are unapproved for broker use. 3. The same rules apply for U.S. domiciled and non U.S. domiciled carriers. 4. Eligible carriers do not need to file documents with the California Department of Insurance. - ✔✔-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? 1. Poor and alien. 2. Earthquake prone and rural. 3. War zones and high crime. 4. Brush fire risk and inner city. - ✔✔-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? 1. The size of the premium. 2. Fair market value of the property. 3. The contingent or expectant value to the insured. 4. The extent to which the insured would be damnified by loss or injury to the property. - ✔✔-4. 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 1. market value. 2. agreed value. 3. actual cash value. 4. replacement value. - ✔✔-2. agreed value. It is unlawful to do any of the following EXCEPT 1. knowingly assist, abet, conspire with, or solicit a person in an unlawful act under this section of the insurance code. 2. make or cause to made a knowingly false or fraudulent or material representation for the purpose of obtaining or denying any compensation. 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. 4. 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. - ✔✔-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 1. the insured's driving safety record. 2. the number of miles driven annually. 3. the zip code where the vehicle is housed. 4. the years of driving experience the insured has. - ✔✔-3. the zip code where the vehicle is housed. All of the following are taken into consideration for California Automobile Assigned Risk Program eligibility for applicants EXCEPT 1. the education of the applicant. 2. the driving record of the applicant. 3. the mental and physical health of the applicant. 4. any criminal history or convictions of the applicant. - ✔✔-1. the education of the applicant. 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. appointing, supervising and terminating agents within the territory. 4. collecting premiums from brokers and agents and remitting them to the insurer. - ✔✔-1. delivering policies to the insured. Under the California Vehicle Code all of the following are acceptable to satisfy the Financial Responsibility requirement EXCEPT 1. a DMV-issued self-insurance certificate. 2. a motor vehicle liability insurance coverage. 3. a cash deposit of $35,000 with the Department of Motor Vehicles. 4. a company with an escrow account that is licensed to do business in California. - ✔✔-4. a company with an escrow account that is licensed to do business in California. Which is NOT a duty of the Workers Compensation Bureau? 1. Inspect risks for classification or rating purposes. 2. Determine which claims are approved and which are denied. 3. Provide reliable statistics and rating information used to help establish premiums. 4. Examine policies and other evidences of insurance to check for compliance with the law. - ✔✔-2. Determine which claims are approved and which are denied. Which circumstances in a pretext interview determine if the questions are permissible? 1. When an insured is questioned prior to the application to determine the best recommendations for coverage. 2. When an insured is consulted by a person who hides his true identity on purpose when fraud for a claim is suspected. 3. When questions are asked to help underwriting decide on coverage for the insured when health problems are suspected. 4. When questions are posed by a person who refuses to identify himself or his relation to the company prior to a policy being underwritten. - ✔✔-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? 1. It is permitted with no charge. 2. It requires a separate charge or fee. 3. If offered as a guarantee of the performance of goods, it is prohibited. 4. If issued by credit unions or with newspaper subscriptions, it is limited under Statute 777.2. - ✔✔-2. It requires a separate charge or fee What is the method used for placing business with the California Automobile Assigned Risk Program? 1. The insurers are drawn randomly from a pool of eligible providers to participate in CAARP. 2. The amount of revenue generated by the insurer is used to determine participate in CAARP. 3. The policies are assigned to the insurer who offers the highest bid to obtain the lucrative CAARP business. 4. The percentage of CAARP policies required is equal to the percentage of regular insurance policies the insurer has issued within the State. - ✔✔-4. The percentage of CAARP policies required is equal to the percentage of regular insurance policies the insurer has issued within the State. Materiality to be solely determined by which of the following? 1. The probability that a certain occurrence of events will result in a claim. 2. The importance of the facts to the insurer and insured in making an underwriting decision. 3. The probable and reasonable influence of the facts upon the party to whom the communication is due. 4. The certainty that material provided to the insurer is truthful in all manners regardless of any mitigating circumstances. - ✔✔-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? 1. the insured 2. the insurance company 3. the insurance commissioner 4. the insurance agent - ✔✔-1. the insured How does an "open" policy differ from a "valued" policy? 1. An open policy is able to protect against perils not specified in the policy. 2. A valued policy is designed to have a greater monetary value than an open policy. 3. The terms of an open policy are open to interpretation, while a valued policy is very precise. 4. An open policy has a value to be determined, while a valued policy protects for a specific amount. - ✔✔- 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 1. bonds issued in all 50 states of the United States. 2. United States government bonds and treasury certificates. 3. certificates of deposit of banks or savings and loan associations licensed by any state. 4. repurchase agreements collateralized by securities issued by the United States government - ✔✔-1. bonds issued in all 50 states of the United States. Which type of coverage protects against loss caused by earth movement? 1. Federal Emergency Management Agency provides all homeowners with this type of protection. 2. A stand-alone Earthquake Insurance policy specifically insuring against loss caused by land subsidence. 3. A Natural Disaster Insurance encompassing all types of natural disasters covering earthquakes, floods, tornados, etc. 4. All Homeowners Insurance policies include specified sections of earthquake coverage. - ✔✔-2. A standalone Earthquake Insurance policy specifically insuring against loss caused by land subsidence. What is the purpose of the California Fair Access to Insurance Requirements program? 1. to provide superior coverage for California property owners 2. to ensure comparable rates between insurance companies 3. to manage taxpayer monies set aside to subsidize insurance for the poor 4. to help property owners who are unable to obtain coverage through the private sector on their own - ✔✔-4. to help property owners who are unab [Show More]

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