age 1 of 69
California Property and Casualty Insurance Test
QUESTIONS AND ANSWERS 100% PASS
What is the required rate discount under a Good Driver Discount
policy? ......ANSWER........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
......ANSWER........Charges and collects a brokers fee for service
What is the procedure for refusing uninsured motorist coverage
in a liability policy? ......ANSWER........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"
,age 2 of 69
......ANSWER........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? ......ANSWER........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
......ANSWER........The number of auto accidents that occur within
the country
Which of the following describes a contract of reinsurance?
......ANSWER........The first insurer issues insurance to compensate
another insurer for losses on contracts issued by that second
insurer
,age 3 of 69
The managing General Agent negotiates and binds ceding
Insurance on behalf of whom? ......ANSWER........The insurer
All of the following are duties of a Managing General Agent
EXCEPT ......ANSWER........Delivering policies to the insured
Who is able to place business through the California Automobile
Assessed Risk Program? ......ANSWER........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? ......ANSWER........The loan recipient may always select a
particular agent or broker of their choosing
, age 4 of 69
All of the following apply to "Approved of Insurance Rates"
EXCEPT ......ANSWER........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?
......ANSWER........The insurance commissioner
All the following conditions must be met before a surplus lines
broker may place insurance with a nonadmitted insurer EXCEPT
......ANSWER........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 ......ANSWER........Sell life insurance covering
compensation benefits
California Property and Casualty Insurance Test
QUESTIONS AND ANSWERS 100% PASS
What is the required rate discount under a Good Driver Discount
policy? ......ANSWER........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
......ANSWER........Charges and collects a brokers fee for service
What is the procedure for refusing uninsured motorist coverage
in a liability policy? ......ANSWER........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"
,age 2 of 69
......ANSWER........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? ......ANSWER........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
......ANSWER........The number of auto accidents that occur within
the country
Which of the following describes a contract of reinsurance?
......ANSWER........The first insurer issues insurance to compensate
another insurer for losses on contracts issued by that second
insurer
,age 3 of 69
The managing General Agent negotiates and binds ceding
Insurance on behalf of whom? ......ANSWER........The insurer
All of the following are duties of a Managing General Agent
EXCEPT ......ANSWER........Delivering policies to the insured
Who is able to place business through the California Automobile
Assessed Risk Program? ......ANSWER........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? ......ANSWER........The loan recipient may always select a
particular agent or broker of their choosing
, age 4 of 69
All of the following apply to "Approved of Insurance Rates"
EXCEPT ......ANSWER........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?
......ANSWER........The insurance commissioner
All the following conditions must be met before a surplus lines
broker may place insurance with a nonadmitted insurer EXCEPT
......ANSWER........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 ......ANSWER........Sell life insurance covering
compensation benefits
