CA Property and Casualty
|\ |\ |\ |\
Insurance Practice Exam |\ |\ |\
QUESTIONS WITH ANSWERS |\ |\
Which of the following is TRUE regarding who qualifies for
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
coverage under the California Fair Access to Insurance
|\ |\ |\ |\ |\ |\ |\ |\
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. - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
✔✔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. - CORRECT ANSWERS ✔✔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. - CORRECT ANSWERS ✔✔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. - CORRECT ANSWERS ✔✔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. - CORRECT ANSWERS ✔✔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. |\
|\ |\ |\ |\
Insurance Practice Exam |\ |\ |\
QUESTIONS WITH ANSWERS |\ |\
Which of the following is TRUE regarding who qualifies for
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
coverage under the California Fair Access to Insurance
|\ |\ |\ |\ |\ |\ |\ |\
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. - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
✔✔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. - CORRECT ANSWERS ✔✔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. - CORRECT ANSWERS ✔✔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. - CORRECT ANSWERS ✔✔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. - CORRECT ANSWERS ✔✔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. |\
