CALIFORNIA PROPERTY AND CASUALTY INSURANCE
EXAM QUESTIONS AND ANSWERS 100% PASS
What is the required rate discount under a Good Driver Discount policy? - ✔✔ - 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 - ✔✔ - Charges and collects a brokers fee for service
What is the procedure for refusing uninsured motorist coverage in a liability policy? -
✔✔ - 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" - ✔✔ - 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? - ✔✔ - 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 - ✔✔ - The number of auto accidents that occur within
the country
Which of the following describes a contract of reinsurance? - ✔✔ - 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? - ✔✔ - The insurer
All of the following are duties of a Managing General Agent EXCEPT - ✔✔ - Delivering
policies to the insured
Who is able to place business through the California Automobile Assessed Risk
Program? - ✔✔ - 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? - ✔✔ - 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 - ✔✔ - 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? - ✔✔ - The insurance commissioner
All the following conditions must be met before a surplus lines broker may place
insurance with a nonadmitted insurer EXCEPT - ✔✔ - 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 - ✔✔ - Sell life insurance
covering compensation benefits
EXAM QUESTIONS AND ANSWERS 100% PASS
What is the required rate discount under a Good Driver Discount policy? - ✔✔ - 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 - ✔✔ - Charges and collects a brokers fee for service
What is the procedure for refusing uninsured motorist coverage in a liability policy? -
✔✔ - 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" - ✔✔ - 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? - ✔✔ - 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 - ✔✔ - The number of auto accidents that occur within
the country
Which of the following describes a contract of reinsurance? - ✔✔ - 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? - ✔✔ - The insurer
All of the following are duties of a Managing General Agent EXCEPT - ✔✔ - Delivering
policies to the insured
Who is able to place business through the California Automobile Assessed Risk
Program? - ✔✔ - 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? - ✔✔ - 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 - ✔✔ - 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? - ✔✔ - The insurance commissioner
All the following conditions must be met before a surplus lines broker may place
insurance with a nonadmitted insurer EXCEPT - ✔✔ - 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 - ✔✔ - Sell life insurance
covering compensation benefits
