California Property and Casualty Insurance
EXAM NEWEST 2025-2026 VERSION
QUESTIONS WITH GOLDEN TIPS
SOLUTIONS AND REVEWEIRS
What is the required rate discount under a Good Driver Discount policy? - CORRECT ANSWERS
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 - CORRECT ANSWERS Charges and collects a brokers fee for service
What is the procedure for refusing uninsured motorist coverage in a liability policy? - CORRECT
ANSWERS 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" - CORRECT ANSWERS 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? - CORRECT ANSWERS 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 - CORRECT ANSWERS The number of auto accidents that occur within the
country
Which of the following describes a contract of reinsurance? - CORRECT ANSWERS 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? - CORRECT
ANSWERS The insurer
All of the following are duties of a Managing General Agent EXCEPT - CORRECT ANSWERS
Delivering policies to the insured
Who is able to place business through the California Automobile Assessed Risk Program? - CORRECT
ANSWERS 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? - CORRECT ANSWERS 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 - CORRECT ANSWERS 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? - CORRECT ANSWERS The insurance commissioner
All the following conditions must be met before a surplus lines broker may place insurance with a
nonadmitted insurer EXCEPT - CORRECT ANSWERS 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 - CORRECT ANSWERS Sell life insurance covering
compensation benefits
Which is an ACCURATE statement regarding the List of Approved Surplus Lines Insurers - CORRECT
ANSWERS Eligible carriers do not need to file documents with the California Department of
Insurance
A personal lines licensed is an agent-broker who is able to transact coverage for all of the following
EXCEPT - CORRECT ANSWERS Personal aircraft
What is the maximum coverage allowed through the California Automobile Assigned Risk Program for
bodily injury and death? - CORRECT ANSWERS The max coverage per accident is limited to
$30,000 of all persons as a result of any one accident
What is the method used for placing business with the California Automobile Assigned Risk Program? -
CORRECT ANSWERS The percentage of CAARP policies requires is equal to the percentage of
regular insurance policies the insurer has issued within the state
How many days prior to policy expiration is an insurer requires to mail a non renewal notice to the
named insured? - CORRECT ANSWERS 30 days
All of the following are permissible reasons for a consumer reporting agency to furnish motor vehicle,
past claims, or credit reports EXCEPT - CORRECT ANSWERS A request of a national news
organization for an investigative story
What must an individual do in order to act as an agent for a business entity or insurer offering limited
lines automobile coverage? - CORRECT ANSWERS File a notice of appointment with the
commissioner
What possible consequences are faced from the insurance commissioner by an agent or broker who
does not within 60 days comply with an order to establish and complete records? - CORRECT ANSWERS
A suspension or revocation of license
To which person or organization does a public insurance adjuster promote and represent? - CORRECT
ANSWERS The insured
EXAM NEWEST 2025-2026 VERSION
QUESTIONS WITH GOLDEN TIPS
SOLUTIONS AND REVEWEIRS
What is the required rate discount under a Good Driver Discount policy? - CORRECT ANSWERS
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 - CORRECT ANSWERS Charges and collects a brokers fee for service
What is the procedure for refusing uninsured motorist coverage in a liability policy? - CORRECT
ANSWERS 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" - CORRECT ANSWERS 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? - CORRECT ANSWERS 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 - CORRECT ANSWERS The number of auto accidents that occur within the
country
Which of the following describes a contract of reinsurance? - CORRECT ANSWERS 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? - CORRECT
ANSWERS The insurer
All of the following are duties of a Managing General Agent EXCEPT - CORRECT ANSWERS
Delivering policies to the insured
Who is able to place business through the California Automobile Assessed Risk Program? - CORRECT
ANSWERS 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? - CORRECT ANSWERS 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 - CORRECT ANSWERS 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? - CORRECT ANSWERS The insurance commissioner
All the following conditions must be met before a surplus lines broker may place insurance with a
nonadmitted insurer EXCEPT - CORRECT ANSWERS 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 - CORRECT ANSWERS Sell life insurance covering
compensation benefits
Which is an ACCURATE statement regarding the List of Approved Surplus Lines Insurers - CORRECT
ANSWERS Eligible carriers do not need to file documents with the California Department of
Insurance
A personal lines licensed is an agent-broker who is able to transact coverage for all of the following
EXCEPT - CORRECT ANSWERS Personal aircraft
What is the maximum coverage allowed through the California Automobile Assigned Risk Program for
bodily injury and death? - CORRECT ANSWERS The max coverage per accident is limited to
$30,000 of all persons as a result of any one accident
What is the method used for placing business with the California Automobile Assigned Risk Program? -
CORRECT ANSWERS The percentage of CAARP policies requires is equal to the percentage of
regular insurance policies the insurer has issued within the state
How many days prior to policy expiration is an insurer requires to mail a non renewal notice to the
named insured? - CORRECT ANSWERS 30 days
All of the following are permissible reasons for a consumer reporting agency to furnish motor vehicle,
past claims, or credit reports EXCEPT - CORRECT ANSWERS A request of a national news
organization for an investigative story
What must an individual do in order to act as an agent for a business entity or insurer offering limited
lines automobile coverage? - CORRECT ANSWERS File a notice of appointment with the
commissioner
What possible consequences are faced from the insurance commissioner by an agent or broker who
does not within 60 days comply with an order to establish and complete records? - CORRECT ANSWERS
A suspension or revocation of license
To which person or organization does a public insurance adjuster promote and represent? - CORRECT
ANSWERS The insured
