Questions and Answers
Which of the following is TRUE regarding who qualifies for coverage under the California Fair Access to Insurance Requirements plan?
A Special Surplus Line Broker is allowed to place coverage with a non-admitted insurer for all the following EXCEPT:
Which of the following is TRUE regarding the application and renewal of the limited lines automobile insurance agent license?
Which of the following is TRUE regarding continuing education requirements of an agent or broker?
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Which is an ACCURATE statement regarding the List of Approved Surplus Lines Insurers?
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What 2 different types of areas are served by the California Fair Access to Insurance Responsibilities plan?
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Except in a case where the property is being held as a carrier or depository, what is the insurable interest measured by?
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ALL of the following are examples of open policies EXCEPT:
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It is unlawful to do any of the following EXCEPT:
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Study Notes
California Fair Access to Insurance Requirements (FAIR Plan)
- Individuals unable to secure basic property insurance through standard channels qualify for coverage.
- Coverage does not provide superior benefits compared to alternative property insurance.
- Inspection waivers do not automatically apply for FAIR plan participants.
Special Surplus Line Broker Regulations
- Special Surplus Line Brokers can place coverage with non-admitted insurers for aircraft insurance and goods import/export but not for transportation involving bridges and tunnels.
Limited Lines Automobile Insurance Agent License
- Application and renewal fees for limited lines automobile insurance agent licenses mirror those of personal lines licenses.
- No fees are required for applying or renewing limited lines agents, contradicting fee comparison.
Continuing Education Requirements for Agents and Brokers
- Licensees must complete 24 hours of instruction for license renewal.
- Licensees with at least 10 years of good standing can request exemption from continuing education requirements, focusing on their established reputation.
- Continuing education requirements differ based on the type of insurance; life and health agents have more hours than property and casualty agents.
List of Approved Surplus Lines Insurers
- Participation in the LASLI (List of Approved Surplus Lines Insurers) is mandatory for eligible non-admitted insurers.
- Only approved carriers can be utilized by brokers, aligning rules for both U.S. and non-U.S. domiciled carriers.
- Eligible carriers are exempt from filing with the California Department of Insurance.
Areas Served by the FAIR Plan
- The California FAIR plan caters to areas with brush fire risks and inner-city locations.
Insurable Interest
- Insurable interest is gauged by the extent of financial loss the insured would suffer due to property damage, not by premium size or property value.
Open Policies
- Common forms of open policies include market value, actual cash value, and replacement value; agreed value is not classified as such.
Unlawful Acts in Insurance Practices
- Assisting in unlawful acts, making false representations for compensation, and fraudulent statements in claims against the insurance code are prohibited. However, misleading representations encouraging injured workers to claim benefits may not be deemed unlawful.
Principal Rating Factors for Automobile Insurance
- Details on principal rating factors in determining automobile insurance premiums remain incomplete and unspecified.
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Description
Test your knowledge on California's Fair Access to Insurance Requirements plan with this practice exam. The quiz covers who qualifies for coverage, ensuring you understand the key aspects of property insurance in California. Perfect for those preparing for the insurance certification exam.