P&C California Exam Questions pool
(Answered) Graded A
What is the purpose of the California Fair Access to Insurance Requirements program?
1.
to provide superior coverage for California property owners
2.
to en
...
P&C California Exam Questions pool
(Answered) Graded A
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 -
✔✔-to help property owners who are unable to obtain coverage through the private sector on their
own
All of the following are part of the Minimum Liability Insurance Requirements for Private Passenger
Vehicles EXCEPT
1.
$15,000 for injury/death to one person.
2.
$30,000 for injury/death to more than one person.
3.
$5,000 for damage to property.
4.
$5,000 for medical services. - ✔✔-$5,000 for medical services.
What is the primary function of The California Automotive Assigned Risk Plan (CAARP)?
1.
to serve as an insurer to provide automobile coverage for low income people
2.
to monitor the rates of automobile insurers to make sure the prices remain competitive
3.
to put people who have trouble obtaining insurance in touch with insurers who may be required by law
to insure them
4.
to provide training for agents, and to determine which agents and automobile insurers are able to place
business through the program - ✔✔-to put people who have trouble obtaining insurance in touch with
insurers who may be required by law to insure them
Where must the address be printed for the principal office that is required for every broker agent and
resident insurance casualty broker-agent?
1.
policy
2.
promotional fliers
3.
business cards and stationary
4.
applications for license and renew - ✔✔-applications for license and renewals
A personal lines licensee is an agent-broker who is able to transact coverage for all of the following
EXCEPT
1.
personal aircraft.
2.
earthquake and flood.
3.
residential property.
4.
automobiles and recreational vehicles. - ✔✔-personal aircraft.
All of the following are requirements for determining an area that qualifies for Low Cost Automobile
Insurance EXCEPT
1.
the number of automobile accidents that occur within the county.
2.
the number or percentage of low income people within the county.
3.
the number or percentage of uninsured motorists within the county.
4.
the availability of affordable insurance through private insurers within the county. - ✔✔-the number of
automobile accidents that occur within the county.
Which is TRUE regarding a "valued" policy?
1.
A market value policy is an example of a valued policy.
2.
A valued policy specifies the coverage amount of the policy.
3.
A valued policy is the only type of policy that builds a cash value.
4.
A valued policy generally costs more than replacement value because it has a specific amount. - ✔✔-A
valued policy specifies the coverage amount of the policy.
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. - ✔✔-make or cause to made a knowingly
false or fraudulent or material representation for the purpose of encouraging an injured worker to claim
benefits.
A standard fire insurance policy contains the following details EXCEPT
1.
the address of the insured.
2.
the term coverage of the policy.
3.
the name of the insurance company.
4.
the amount of coverage and cost of premiums. - ✔✔-the address of the insured.
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. - ✔✔-The percentage of CAARP policies required is equal to the
percentage of regular insurance policies the insurer has issued within the State.
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. - ✔✔-delivering policies
to the insured
How can a licensee surrender any license for cancellation?
1.
By posting a written statement on their website.
2.
By calling the Department of Insurance and advising them verbally.
3.
By submitting written notice or by delivering the license to the commissioner.
4.
By submitting written notice to all contracted insurers and existing policyholders. - ✔✔-By submitting
written notice or by delivering the license to the commissioner.
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. - ✔✔-transportation involving
bridges and tunnels.
Which condition is NOT required to be met for a surplus line broker to advise any home state insured or
applicant that coverage has been, or will be obtained from a nonadmitted insurer?
1.
An annual payment has been received by the insurer.
2.
The broker has prior written authority from the nonadmitted insurer.
3.
The broker has received advice for coverage in the ordinary course of business.
4.
A policy of insurance has actually been issued and delivered by the nonadmitted insurer. - ✔✔-An
annual payment has been received by the insurer.
All of the following are included as definitions of "transact" as applied to insurance EXCEPT
1.
solicitation.
2.
underwriting.
3.
negotiations preliminary to execution.
4.
execution of a contract of insurance. - ✔✔-underwriting
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. - ✔✔-the education of the applicant.
Which of the following is TRUE regarding a concurrent cause involving perils both covered and non
covered?
1.
Both perils are covered.
2.
Both policies pay in equal amounts.
3.
Only the peril specified in the policy is covered.
4.
A concurrent cause invalidates the coverage; neither peril is covered. - ✔✔-Only the peril specified in
the policy is covered.
Every licensee and applicant for a license shall immediately notify the commissioner using an approved
electronic service of any changes of all of the following EXCEPT
1.
e-mail address.
2.
mailing address.
3.
telephone and fax number.
4.
business or residential address. - ✔✔-telephone and fax number.
What document must be provided to the insured prior to any residential insurance policy being issued
or renewed?
1.
A cost analysis of the insurance industry.
2.
A statement from the Better Business Bureau.
3.
A copy of the California Residential Property disclosure statement.
4.
At least three quotes by competitors for the same coverage offered by the insurer. - ✔✔-A copy of the
California Residential Property disclosure statement.
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. - ✔✔-
Determine which claims are approved and which are denied.
While both work with an insurer, how does an "Insurance broker" differ from an "insurance agent"?
1.
The broker gets paid by commission, but the agent does not.
2.
The broker does not transact on behalf of an insurer, while the agent does.
3.
The broker has to be licensed, but the agent meets less stringent requirements.
4.
The broker is unable to provide the same competitive prices that an agent provides. - ✔✔-The broker
does not transact on behalf of an insurer, while the agent does
How many classes of insurance are defined under California Insurance Law, including "miscellaneous"
and "reserved"?
1.
There is just 1 class of insurance defined under California Law, with many sub-classes.
2.
There are 5 classes of insurance as defined by California Insurance Law.
3.
There are a total of 20 classes of insurance defined under California Insurance Law, with sub-classes.
4.
There are 42 classes of insurance defined under California Law, one for each need protected. - ✔✔-
There are a total of 20 classes of insurance defined under California Insurance Law, with sub-classes.
ALL of the following are TRUE regarding the process to change the California Code of Regulations
EXCEPT
1.
the Office of Administrative Law (OAL) may substitute its own judgment for that of the rulemaking
agency.
2.
the Administrative Procedure Act requires a minimum of 45 days for comments regarding the proposed
changes.
3.
the Agency may decide to change its initial proposal in response to public comments or on its own
initiative after the initial public comment period.
4.
the Emergency Rulemaking Process and the Regular Rulemaking Process are separate requiring different
standards and procedures for proposed changes. - ✔✔-the Office of Administrative Law (OAL) may
substitute its own judgment for that of the rule
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