QUIZ - Section 3

Question 1

Commissioner can suspend a permanent license without a hearing except:

A. conviction of any felony
B. None are exceptions
C. Client co -signing a loan
D. License revoked last 5 years

Answer 1

Client co-signing a loan

Question 2

When can a partnership continue if a new partner joins?

A. After the new partner is issued a license by the department and the old license is terminated
B. After all the partners file a written notice with the commissioner within 45 days.
C. After the commissioner is notified and a new license is issued.
D. after the department is notified within 30 days and the changes are approved.

Answer 2

After the department is notified within 30 days and the changes are approved.

Question 3

A subsidiary formed to insure the parent company is called an:

A. inter-insurance exchange
B. Co-op insurer
C. Captive insurer
D. Fraternal

Answer 3

Captive insurer

Question 4

Every licensee shall prominently put their license number on all of the following except:

A. Phone book listing in the white pages
B. neighborhood advertising flyer
C. Price quote
D. Business cards

Answer 4

Phone book listing in the white pages

Question 5

the actuarial department is responsible for:

A. receiving applications for insurance and then deciding if the company should approve or reject the application
B. advertising, promoting and distributing an insurer’s products to the public
C. Receiving claim requests, evaluating them and paying those claims that are covered by the terms of the contract and rejecting those that is not.
D. using claims history, statistics and computer data to predict losses.

Answer 5

using claims history, statistics and computer date to predict losses

Question 6

Every applicant for a license to act as an agent must have filed with the commissioner:

A. a notice of appointment to do business in the state
B. a license number to be approved prior to receiving a license
C. an application for employment with the company employed with
D. a request for application prior to being licensed in the state

Answer 6

a notice of appointment to do business in the state

Question 7

WOF is NOT true about the CA insurance code and the CA code of regulations?

A. the CIC is written, updated and changed by the California state legislature
B. The CIC gives the Commissioner the power to institute rules and regulations which are called the CCR
C. the department of insurance implements, enforces and monitors the CIC
D. The CIC and the CCR are a complete guide to ethical behavior

Answer 7

The CIC and the CCR are a complete guide to ethical behavior

Question 8

To handle long term care insurance, an agent of more then four years must satisfy the continuing education requirement of:

A. 8 hours of LTC training each license term
B. A 4 hr course in each of the first 4 years of licensing
C. a 4 hr course in each of the first 2 years of licensing
D. an 8 hr course in each of the first 4 years of licensing

Answer 8

8 hours of LTC training each license term

Question 9

In order to update, add or change a statute a bill must be passed by the legislature and then presented to the governor. If the statute is passed, it will go into effect:

A. on the next aug 1st
B. immediately
C. on the next fiscal years
D. on the next January 1st

Answer 9

On the next January 1st

Question 10

Records must be made available to the commissioner:

A. at all times
B. upon written request
C. within 5 days
D. within 30 days

Answer 10

At all times

Question 11

A Property and Casualty Agent is required to continue their education by completing:

a total of 100 hours during the first 4 years of licensing.
a total of 24 hours per license term.
a total of 25 hours during the first 2 years of licensing.
a total of 55 hours during the first 2 years of licensing

Answer 11

a total of 24 hours per license term.

Question 12

Appointments are terminated:

any of these
license fees paid late
by either agent or insurer
termination of license

Answer 12

any of these

Question 13

If someone has a Life Agent Combo and a Property/Casualty license for 10 years, then how many CE hours would be required in the current license term?

30 hours
50 hours
25 hours
24 hours

Answer 13

24 hours

Question 14

For an agent or solicitor to be valid to transact requires:

neither are required
a proper license
both are required
an appointment

Answer 14

both are required

Question 15

An organization ceases to exist as an entity eligible to hold a license upon all of the following EXCEPT:

upon dissolution of a co partnership or upon any change in membership of a co partnership.

upon the termination of an association.

upon the termination of a key employee.

upon dissolution of a corporation.

Answer 15

upon the termination of a key employee.

Question 16

________ refers to the inability of the insurer to meet its financial obligations when they are due.

Non-Admitted
Insolvency
Actuarial
Paid in capital

Answer 16

Insolvency

Question 17

It is against the law for an insurance licensee to offer free insurance to:

those who cannot afford it.

anyone as an incentive to acquire some other type of business.
anyone, regardless the reason.
family and other relatives.

Answer 17

anyone as an incentive to acquire some other type of business.

Question 18

After providing an opportunity for a hearing, the Commissioner may deny an application for a license based on the following reasons EXCEPT:

the applicant lied on the application

the applicant has acted as a licensed person before the license was issued

the applicant is disabled

the applicant was convicted of a felony

Answer 18

the applicant is disabled

Question 19

All Property and Casualty Broker/Agents are required by law to display to the public:

Their license to sell insurance, displayed in a place where it can be easily seen.

The institution of education where they received their degree.

Their license to sell insurance displayed in their training room.

The types of insurance they are licensed to sell displayed in their personal office.

Answer 19

Their license to sell insurance, displayed in a place where it can be easily seen.

Question 20

Transacting via internet with a California resident would not require:

name on license
license expiration
license number
state licensee is domicile

Answer 20

license expiration

Question 21

The marketing/sales department is responsible for:

receiving claim requests, evaluating them, and paying those claims that are covered by the terms of the contract and rejecting those that are not.

receiving applications for insurance and then deciding if the company should approve or reject the application.

advertising, promoting and distributing an insurer`s products to the public.

using claims history, statistics, and computer data to predict losses.

Answer 21

advertising, promoting and distributing an insurer`s products to the public.

Question 22

Which of the following is NOT a valid reason for the Commissioner to deny the use of a name when filing with the Insurance Commissioner?

The name would interfere or is too similar to the name of another agency already licensed by the Commission.

The name gives the impression the licensee is authorized to conduct a type of business it cannot legally conduct.

The name would lead the public in the wrong direction.

The name is politically connected to the government.

Answer 22

The name is politically connected to the government.

Question 23

All of the following are examples of fiduciaries EXCEPT:

Vendor
Administrators
Corporate directors
Executors

Answer 23

Vendor

Question 24

A licensee may surrender his/her license:

after notifying the Commissioner and a mandatory 30 day waiting period.

after the termination of employment with an insurer.

after written notice to the Department and the
Commissioner after the next January 1.

upon written notice to the Department of Insurance at any time.

Answer 24

upon written notice to the Department of Insurance at any time.

Question 25

Which of the following is not a person under the Code?
An estate of a deceased
A family
An entity
An individual

Answer 25

A family

Question 26

If a license is in the possession of the insurer or the licensee`s employer, the licensee may surrender his/her license:

after written notice is delivered to the Commissioner.

after notifying the Commissioner and a mandatory 30 days waiting period.

at any time

after the termination of employment with an insurer.

Answer 26

after written notice is delivered to the Commissioner.

Question 27

Insolvency means:

an insurer`s inability to meet the standards set by the DOI
a company has more claims than earned premium to pay for those claims

an insurer`s inability to meet its financial obligations when they are due

a company has more earned premium than claims made

Answer 27

an insurer`s inability to meet its financial obligations when they are due

Question 28

Informational records must be kept a minimum of:

18 months
indefinitely
5 years
12 months

Answer 28

18 months

Question 29

In lieu of denying an application for a license the Commissioner can:

issue a restricted license
either of these
charge extra fees
neither of these

Answer 29

issue a restricted license

Question 30

According to the qualifications of an insurer under the California Code a person can be any of the following EXCEPT:

a corporation

a trust

an estate of a deceased person

a human being at least age 16 who is competent and not intoxicated

Answer 30

a human being at least age 16 who is competent and not intoxicated

Question 31

An agent or broker may charge an extra fee for services above and beyond what are considered normal duties. Which of the following is NOT considered an extra service?

Application paperwork

Services performed as a convenience to the insured that result in extra expense to the broker or agent

Additional activities

Additional research

Answer 31

Application paperwork

Question 32

Agents must keep good records and make them available to the DOI for a period of:

3 years
2 years
5 years
1 year

Answer 32

5 years

Question 33

When should a licensee notify the Commissioner of a change in address?

immediately

within the 10 day grace period

after notifying the company the licensee is employed with

within the 30 day grace period

Answer 33

immediately

Question 34

Commissioner may give an order that records be brought current within:

15 days of the order
60 days of the order
30 days of the order
90 days of the order

Answer 34

60 days of the order

Question 35

What is the difference between an admitted and a non-admitted insurer?

An admitted insurer is a company that has met most of the qualifications designed by the DOI and has received a Certificate of Authority from the DOI to transact insurance in California, whereas a non-admitted insurer has not applied or been denied.

An admitted insurer has met all the qualifications designed by the DOI but hasn`t received a Certificate of Authority because they are not licensed in the state of California and a non-admitted insurer is licensed in the state of California.

A non-admitted insurer is a company that has met all of the qualifications designed by the DOI and has received a Certificate of Authority from the DOI to transact insurance in California, whereas an admitted insurer has not complied or been denied.

An admitted insurer is a company that has met all of the qualifications designed by the DOI and has received a Certificate of Authority from the DOI to transact insurance in California, whereas a non-admitted insurer has not complied or been denied.

Answer 35

An admitted insurer is a company that has met all of the qualifications designed by the DOI and has received a Certificate of Authority from the DOI to transact insurance in California, whereas a non-admitted insurer has not complied or been denied.