Insurance Exam Questions and

• | Page

California Property and Casualty Insurance Exam Questions and ANSWERs 100% Pass

Question 1: Which of the following is TRUE regarding

who qualifies for coverage under the California Fair Access to Insurance Requirements plan?

• Any person who is unable to obtain basic property

insurance through normal channels.

• Any person who qualifies will receive superior

coverage to other forms of property insurance.

• Any person who does NOT have an insurable interest

in a property can participate in the FAIR plan.

• Any person who qualifies will have the inspection

automatically waived if they are a FAIR plan participant.

CORRECT ANSWER : 1. Any person who is unable to

obtain basic property insurance through normal channels.

• | Page

Question 2: A Special Surplus Line Broker is allowed to

place coverage with a non-admitted insurer for all the following EXCEPT

• aircraft insurance.
• interstate commerce involving railroads.
• transportation involving bridges and tunnels.
• insurance against perils of navigation for import and

exporting of goods.

CORRECT ANSWER : 3. transportation involving

bridges and tunnels.

Question 3: Which of the following is TRUE regarding

the application and renewal of the limited lines automobile insurance agent license?

• The fees and process are the same as for a personal

lines licensee.

• There are no fees for filing the application or renewal

applications for the license.

• | Page

• The limited lines agent is ineligible to become a

property or casualty broker-agent.

• The agent must pass an examination on the insurance

code and products, but not ethics.

CORRECT ANSWER : 1. The fees and process are the

same as for a personal lines licensee.

Question 4: Which of the following is TRUE regarding

continuing education requirements of an agent or broker?

• Any licensee shall satisfactorily complete 24 hours of

instruction prior to license renewal.

• Any licensee in good standing for 10 years may apply

for exemption to the continuing education requirement if reputation has been proven.

• An agent or broker licensed in life and health requires

more continuing education hours than an agent or broker licensed in property and casualty.

• 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.

• | Page

CORRECT ANSWER : 1. Any licensee shall

satisfactorily complete 24 hours of instruction prior to license renewal.

Question 5: Which is an ACCURATE statement

regarding the List of Approved Surplus Lines Insurers?

• Participation in LASLI is mandatory and all approved

non admitted insurers are on the list.

• Surplus lines insurers that are not on the list are

unapproved for broker use.

• The same rules apply for U.S. domiciled and non U.S.

domiciled carriers.

• Eligible carriers do not need to file documents with the

California Department of Insurance.

CORRECT ANSWER : 4. Eligible carriers do not need

to file documents with the California Department of Insurance.