CA Property and Casualty Insurance Practice Exam

What is the required rate discount under a Good Driver Discount policy? 1. 20% below the rate the insured would have been otherwise charged for the same coverage. 2. 10% below the rate the insured would have been otherwise charged for the same coverage. 3. 20% below the insurer's average premium rate. 4. 10% below the insurer's average premium rate.

1. 20% below the rate the insured would have been otherwise charged for the same coverage.

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.

1. An annual payment has been received by the insurer.

Which of the following is TRUE regarding continuing education requirements of an agent or broker? 1. Any licensee shall satisfactorily complete 24 hours of instruction prior to license renewal. 2. Any licensee in good standing for 10 years may apply for exemption to the continuing education requirement if reputation has been proven. 3. An agent or broker licensed in life and health requires more continuing education hours than an agent or broker licensed in property and casualty. 4. 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.

1. Any licensee shall satisfactorily complete 24 hours of instruction prior to license renewal.

Which of the following is TRUE regarding who qualifies for coverage under the California Fair Access to Insurance Requirements plan? 1. Any person who is unable to obtain basic property insurance through normal channels. 2. Any person who qualifies will receive superior coverage to other forms of property insurance. 3. Any person who does NOT have an insurable interest in a property can participate in the FAIR plan. 4. Any person who qualifies will have the inspection automatically waived if they are a FAIR plan participant.

1. Any person who is unable to obtain basic property insurance through normal channels.

When may a surplus line broker solicit and place insurance for a home state insured with a nonadmitted insurer? 1. If the same insurance coverage cannot be procured from an admitted insurer. 2. If the nonadmitted insurer is a domestic rather than an alien or foreign company. 3. Only when the nonadmitted insurer signs an agreement to become an admitted insurer. 4. Only when the proposed insured petitions for the right to be offered the coverage by the broker.

1. If the same insurance coverage cannot be procured from an admitted insurer.

Which of the following is TRUE regarding the application and renewal of the limited lines automobile insurance agent license? 1. The fees and process are the same as for a personal lines licensee. 2. There are no fees for filing the application or renewal applications for the license. 3. The limited lines agent is ineligible to become a property or casualty broker-agent. 4. The agent must pass an examination on the insurance code and products, but not ethics.

1. The fees and process are the same as for a personal lines licensee.

Who is responsible for notifying the public of a proposed rate increase? 1. The insurance commissioner. 2. An insurance watchdog agency. 3. The Fair Credit Reporting Agency. 4. The insurance company proposing the increase.

1. The insurance commissioner.

Which type of protection can a casualty licensee offer in addition to protecting against loss or damage of property? 1. They can provide coverage to protect against legal liability. 2. They can provide life insurance to protect against casualties. 3. They can provide coverage in the event of unexpected unemployment. 4. They can provide extra coverage against direct or major damage to property.

1. They can provide coverage to protect against legal liability.

When shall a life agent, a property broker-agent or a casualty broker-agent provide to all insureds or applicants the effective date of coverage? 1. at the time of application or receipt of premium moneys 2. at the time that the insurance company approves the application 3. at the time the insurance company verifies receipt of the application 4. at the time that the insurance company issues the policy

1. at the time of application or receipt of premium moneys

If fiduciary funds are received by any licensee, the funds shall be maintained in any of the following EXCEPT 1. bonds issued in all 50 states of the United States. 2. United States government bonds and treasury certificates. 3. certificates of deposit of banks or savings and loan associations licensed by any state. 4. repurchase agreements collateralized by securities issued by the United States government

1. bonds issued in all 50 states of the United States.

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.

1. delivering policies to the insured.

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.

1. personal aircraft.

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.

1. the Office of Administrative Law (OAL) may substitute its own judgment for that of the rulemaking agency.

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.

1. the education of the applicant.

All of the following are to be specified in an insurance policy EXCEPT 1. the financial rating of the insured. 2. a statement of the expected premium. 3. the parties between whom the contract is made. 4. the period during which the insurance is to continue.

1. the financial rating of the insured.

To which person or organization does a public insurance adjuster promote and represent? 1. the insured 2. the insurance company 3. the insurance commissioner 4. the insurance agent

1. the insured

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.

1. the number of automobile accidents that occur within the county.

Which type of coverage protects against loss caused by earth movement? 1. Federal Emergency Management Agency provides all homeowners with this type of protection. 2. A stand-alone Earthquake Insurance policy specifically insuring against loss caused by land subsidence. 3. A Natural Disaster Insurance encompassing all types of natural disasters covering earthquakes, floods, tornados, etc. 4. All Homeowners Insurance policies include specified sections of earthquake coverage.

2. A stand-alone Earthquake Insurance policy specifically insuring against loss caused by land subsidence.

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.

2. A valued policy specifies the coverage amount of the policy.

Which of the following is TRUE regarding nonadmitted insurers? 1. A felony is committed by the agent in the state of a nonadmitted insurer. 2. Acting as an agent for a nonadmitted insurer is considered a misdemeanor. 3. The agent shall pay $1,000 in addition to any fees involving the commission of a felony. 4. Specific penalties shall be determined by the Insurance Commissioner on a case by case basis.

2. Acting as an agent for a nonadmitted insurer is considered a misdemeanor.

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.

2. Determine which claims are approved and which are denied.

66. Which is TRUE regarding expectant or contingent interest? 1. Expectant or contingent interest constitutes insurable interest. 2. Expectant or contingent interest does NOT constitute insurable interest. 3. Expectant interest or contingent interest qualifies for insurable interest with a waiver. 4. Both are considered insurable interest, but for only 50% of the value.

2. Expectant or contingent interest does NOT constitute insurable interest.

Which of the following provisions of free insurance offered as an incentive to purchase or rent property is TRUE? 1. It is permitted with no charge. 2. It requires a separate charge or fee. 3. If offered as a guarantee of the performance of goods, it is prohibited. 4. If issued by credit unions or with newspaper subscriptions, it is limited under Statute 777.2.

2. It requires a separate charge or fee

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.

2. The broker does not transact on behalf of an insurer, while the agent does.

What does concealment, whether intentional or unintentional, entitle the injured party to? 1. Once the policy has been accepted, it may only be cancelled by the insured under very specific circumstances. 2. The insurer may rescind the contract on the basis of misrepresentation, concealment, or fraud by the insured. 3. Legal damages, not in excess of double the premiums paid. 4. A waiver of responsibility to meet contractual obligations.

2. The insurer may rescind the contract on the basis of misrepresentation, concealment, or fraud by the insured.

What is the maximum coverage allowed through the California Automobile Assigned Risk Program for bodily injury and death? 1. The maximum coverage is limited to value of the insured's vehicle. 2. The maximum coverage per accident is limited to $30,000 of all persons as a result of any one accident. 3. It is unlawful to set a maximum limit, because there could be a large number of people involved. 4. The maximum coverage is $5,000 per person, regardless of the number of people involved in an accident.

2. The maximum coverage per accident is limited to $30,000 of all persons as a result of any one accident.

Which circumstances in a pretext interview determine if the questions are permissible? 1. When an insured is questioned prior to the application to determine the best recommendations for coverage. 2. When an insured is consulted by a person who hides his true identity on purpose when fraud for a claim is suspected. 3. When questions are asked to help underwriting decide on coverage for the insured when health problems are suspected. 4. When questions are posed by a person who refuses to identify himself or his relation to the company prior to a policy being underwritten.

2. When an insured is consulted by a person who hides his true identity on purpose when fraud for a claim is suspected.

All of the following are TRUE regarding a warranty EXCEPT 1. a warranty can be express or implied. 2. a particular form of words is necessary to create a warranty. 3. a warranty can refer to the past, present, future, or all of these. 4. a statement in a policy relating to the person or thing insured, or the insured risk, is a warranty.

2. a particular form of words is necessary to create a warranty.

What possible consequences are faced from the insurance commissioner by an agent or broker who does not within 60 days comply with an order to establish and complete records? 1. a fine increasing up to $5,000 2. a suspension or revocation of license 3. a mandatory jail sentence of 30 days 4. a reduction of future commissions awarded

2. a suspension or revocation of license

ALL of the following are examples of open policies EXCEPT 1. market value. 2. agreed value. 3. actual cash value. 4. replacement value.

2. agreed value.

Which is considered nonpublic personal information as defined by the California Financial Code? 1. property taxes 2. tax return 3. residence address 4. telephone number

2. tax return

Who must be able to inspect records of insurance transactions made available by agent-brokers at any time? 1. the policy holder 2. the insurance commissioner 3. the regional manager of the insurer 4. the shareholders of the insurance corporation

2. the insurance commissioner

All of the following are reasons employers liability insurance is needed in addition to workers' compensation insurance EXCEPT 1. exempt employments. 2. to pay medical bills. 3. illegal employments. 4. non compensable injuries.

2. to pay medical bills.

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.

2. underwriting.

When can a person who sells real property require the use of a specific insurance agent, broker or solicitor? 1. As a condition precent to the sale of such real property. 2. When a buyer's credit score is below the lender's threshold. 3. A buyer is always able to choose their own insurance representative. 4. When it is required by local municipal regulation.

3. A buyer is always able to choose their own insurance representative.

Who is legally capable to estimate the replacement value of a structure and discuss homeowners policy coverage levels? 1. An agent or broker. 2. An appraiser or architect. 3. An insurer underwriter or actuary. 4. A member of the insurance committee.

3. An insurer underwriter or actuary.

Who is authorized to adjust or pay claims in excess of an amount determined by the commissioner? 1. The Claims Assistant 2. The Treasurer 3. The Managing General Agent 4. The Executive Financial Committee

3. The Managing General Agent

Which of the following modification can be made under a standard fire policy? 1. The insured can sign a waiver accepting lesser coverage. 2. The insurance commissioner can approve the variance in coverage. 3. The coverage can substantially be equal to or more favorable to the insured. 4. The insurer can offer the proposed insured lesser coverage, for a lower premium rate.

3. The coverage can substantially be equal to or more favorable to the insured.

What is the coverage limit offered by the California Earthquake Authority for condominiums? 1. There is no limit. 2. The coverage is equal to the fair market value. 3. The coverage is limited to $25,000 if the value is $135,000 or less, and $50,000 if the value is over $135,000. 4. The total limit for coverage is $500,000; the same as any other type of residential property protected by the California Earthquake Authority.

3. The coverage is limited to $25,000 if the value is $135,000 or less, and $50,000 if the value is over $135,000.

Materiality to be solely determined by which of the following? 1. The probability that a certain occurrence of events will result in a claim. 2. The importance of the facts to the insurer and insured in making an underwriting decision. 3. The probable and reasonable influence of the facts upon the party to whom the communication is due. 4. The certainty that material provided to the insurer is truthful in all manners regardless of any mitigating circumstances.

3. The probable and reasonable influence of the facts upon the party to whom the communication is due.

What are the requirements for notices required by any provision of the insurance code to a person unless expressly provided otherwise? 1. They should be made by telephone on a recorded line. 2. They should be received by email to their registered email address. 3. They should be sent to a mailing notice at their residence or place of business. 4. They should be prioritized with overnight express at their residence or place of business.

3. They should be sent to a mailing notice at their residence or place of business.

All of the following are permissible reasons for a consumer reporting agency to furnish motor vehicle, past claims, or credit reports EXCEPT 1. information for employment purposes. 2. a response to a court order or a subpoena issued by a Federal Grand Jury. 3. a request of a national news organization for an investigative story. 4. underwriting purposes to determine a consumer's eligibility for insurance.

3. a request of a national news organization for an investigative story.

When should an agent provide an applicant the effective date of coverage, if known, or the circumstances under which coverage will be effective? 1. when a proposal is presented 2. at the time underwriting has been completed 3. at the time of application or receipt of premium 4. when applicant has verbally committed to applying for coverage

3. at the time of application or receipt of premium

The following are valid insurance classes under California Insurance Law EXCEPT 1. life, fire, marine and title. 2. surety, disability and plate glass. 3. certainty, precious metals, and gems. 4. sprinkler, boiler and machinery, and team and vehicle.

3. certainty, precious metals, and gems.

Which of the following must be prominently displayed so that it can be readily inspected on the license? 1. accuracy 2. safety and security 3. currency and capacity 4. years of service and age of licensee

3. currency and capacity

All of the following are cause for cancellation of an automobile policy EXCEPT 1. nonpayment of premium. 2. the suspension of the primary insured's driver's license 3. discovery of a criminal record for a felony. 4. a substantial increase in the hazard insured against.

3. discovery of a criminal record for a felony.

Which of the following is a VALID reason to deny coverage or charge a higher rate or premium? 1. ancestry. 2. race, color or religion. 3. driving history or motor vehicle record. 4. sexual orientation or gender expression.

3. driving history or motor vehicle record.

All of the following are TRUE In reference to an insurance binder EXCEPT 1. it is proof of coverage. 2. it provides coverage pending issuance of a policy. 3. it remains valid until a policy has been delivered. 4. it includes all terms and endorements applicable to the policy.

3. it remains valid until a policy has been delivered.

All of the following are a duty of an insurer in regards to claims on file and record documentation EXCEPT 1. maintaining claim data so that an insurer shall be able to provide the claim number, line of coverage, and other pertinent data. 2. recording the date the licensee received, date(s) the licensee processed and date the licensee transmitted or mailed every material and relevant document in the file. 3. maintaining any sales material, which had a material impact on the claims process. 4. maintaining claim files that are accessible, legible, and claim of duplication.

3. maintaining any sales material, which had a material impact on the claims process.

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.

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.

Who is able to place business through the California Automobile Assessed Risk Program? 1. any agent licensed in property and casualty insurance 2. only insurers with operating headquarters based in California 3. only agent/brokers licensed in fire and casualty who have also been certified through CAARP. 4. any agent who has been licensed in the State of California for a minimum of 5 years and is certified by CAARP.

3. only agent/brokers licensed in fire and casualty who have also been certified through CAARP.

In conducting the business and affairs of the State Compensation Insurance Fund, the president of the fund may do any of the following EXCEPT 1. enter into contracts of workers' compensation insurance. 2. sell annuities covering compensation benefits. 3. sell life insurance covering compensation benefits. 4. reinsurance any risk or any part thereof.

3. sell life insurance covering compensation benefits.

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

3. telephone and fax number.

The Insurance Commissioner may deny an application for any license issued for any of the following EXCEPT 1. the applicant has been convicted of a felony. 2. the applicant is not of good business reputation. 3. the applicant is lacking in good judgment. 4. the granting of the license would be against the public interest.

3. the applicant is lacking in good judgment.

All of the following are reasons earthquake policy deductibles are MORE FAVORABLE than commonly used property deductibles EXCEPT 1. the personal property deductible is waived once the dwelling deductible is met. 2. only the earthquake policy will cover for damages due to an earthquake once the deductible is met. 3. the earthquake deductible is often 10 to 15 percent higher than for other types of property coverage. 4. no deductible is required for eligibility to be triggered if the earthquake policy claim exceeds the deductible by 100%.

3. the earthquake deductible is often 10 to 15 percent higher than for other types of property coverage.

All of the following are examples of misrepresentations that may not be made by an insurer, officer or agent thereof or an insurance broker or solicitor EXCEPT 1. the terms of a policy issued. 2. the future dividends payable. 3. the specific contract language. 4. the benefits or privileges promised.

3. the specific contract language

All of the following are PRINCIPAL rating factors in determining automobile insurance premiums EXCEPT 1. the insured's driving safety record. 2. the number of miles driven annually. 3. the zip code where the vehicle is housed. 4. the years of driving experience the insured has.

3. the zip code where the vehicle is housed.

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.

3. transportation involving bridges and tunnels.

When may a property broker-agent, casualty broker-agent or surplus lines agent offset funds due an insured for return premiums? 1. when it is from the same insurance company 2. when it is for the spouse of the insured for unpaid premiums on any other policy 3. when it is from the same insured for unpaid premiums on the same or any other policy 4. when the agent has noticed that the client is late paying premiums, the funds can be held to pay future premiums

3. when it is from the same insured for unpaid premiums on the same or any other policy

How does an "admitted" person differ from an "nonadmitted" person, as it pertains to insurance? 1. An "admitted" person has admitted to a crime or fraud, while a "nonadmitted" person has not. 2. An "admitted" person has been granted admission to an insurance association, while a "nonadmitted" person has not been accepted. 3. An "admitted" person has been admitted to an accreditation program, while a "nonadmitted" person has yet to earn the credits. 4. An "admitted" person has the right to transact insurance business within the state, while a "nonadmitted" person is not entitled to this action.

4. An "admitted" person has the right to transact insurance business within the state, while a "nonadmitted" person is not entitled to this action.

How does an "open" policy differ from a "valued" policy? 1. An open policy is able to protect against perils not specified in the policy. 2. A valued policy is designed to have a greater monetary value than an open policy. 3. The terms of an open policy are open to interpretation, while a valued policy is very precise. 4. An open policy has a value to be determined, while a valued policy protects for a specific amount.

4. An open policy has a value to be determined, while a valued policy protects for a specific amount.

What criteria must a person meet in order to be qualified to purchase a Good Driver Discount policy? 1. Being licensed to drive a motor vehicle for the previous 5 years and has not had more than one violation point count as determined by the CIC. 2. Being licensed to drive a motor vehicle for the previous 3 years and has not had more than two violation point count as determined by the CIC. 3. Being licensed to drive a motor vehicle for the previous 3 years and able to meet the standards of an insurer's applicable Good Driver program. 4. Being licensed to drive a motor vehicle for the previous 3 years and has not had more than one violation point count as determined by the CIC.

4. Being licensed to drive a motor vehicle for the previous 3 years and has not had more than one violation point count as determined by the CIC.

What 2 different types of areas are served by the California Fair Access to Insurance Responsibilities plan? 1. Poor and alien. 2. Earthquake prone and rural. 3. War zones and high crime. 4. Brush fire risk and inner city.

4. Brush fire risk and inner city.

Which is an ACCURATE statement regarding the List of Approved Surplus Lines Insurers? 1. Participation in LASLI is mandatory and all approved non admitted insurers are on the list. 2. Surplus lines insurers that are not on the list are unapproved for broker use. 3. The same rules apply for U.S. domiciled and non U.S. domiciled carriers. 4. Eligible carriers do not need to file documents with the California Department of Insurance.

4. Eligible carriers do not need to file documents with the California Department of Insurance.

Except in a case where the property is being held as a carrier or depository, what is the insurable interest is measured by? 1. The size of the premium. 2. Fair market value of the property. 3. The contingent or expectant value to the insured. 4. The extent to which the insured would be damnified by loss or injury to the property.

4. The extent to which the insured would be damnified by loss or injury to the property.

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.

4. The percentage of CAARP policies required is equal to the percentage of regular insurance policies the insurer has issued within the State.

Under the California Vehicle Code all of the following are acceptable to satisfy the Financial Responsibility requirement EXCEPT 1. a DMV-issued self-insurance certificate. 2. a motor vehicle liability insurance coverage. 3. a cash deposit of $35,000 with the Department of Motor Vehicles. 4. a company with an escrow account that is licensed to do business in California.

4. a company with an escrow account that is licensed to do business in California.

"Person" means all of the following EXCEPT 1. an association. 2. a corporation. 3. a business trust. 4. an organizational trust.

4. an organizational trust.

When is it possible for a commercial vehicle to be eligible for coverage under the California Automobile Assigned Risk Program? 1. if the commercial vehicle is part of a large corporate fleet that moves products serving the underprivileged 2. when the commercial vehicle is used strictly for the transportation of those suffering from a terminal illness 3. when the commercial vehicle is licensed to operate in an area officially declared as either a disaster or poverty zone 4. if it is a privately owned lightweight commercial vehicle used for local service or retail deliveries within a specific geographic area.

4. if it is a privately owned lightweight commercial vehicle used for local service or retail deliveries within a specific geographic area.

An insurance agent is a person who transacts all of the following types of insurance EXCEPT 1. annuities. 2. homeowners. 3. auto insurance. 4. life insurance.

4. life insurance.

"Notice of legal action" can mean all of the following EXCEPT 1. notice of action commenced against the insurer with respect to a claim. 2. notice of action against the insured received by the insurer. 3. notice of action against the principal under a bond. 4. notice of action against the agent.

4. notice of action against the agent.

Which group of people is offered additional protection by the Unfair Practices Act that regulates trade practices in the business of insurance? 1. victims of domestic abuse 2. victims of natural disasters 3. veterans injured overseas 4. survivors of the Holocaust

4. survivors of the Holocaust

No rate shall be approved or remain in effect for the following reasons EXCEPT 1. the rate is excessive. 2. the rate is inadequate. 3. the rate is unfairly discriminatory. 4. the rate is based on actuary principles.

4. the rate is based on actuary principles.

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

4. to help property owners who are unable to obtain coverage through the private sector on their own

All of the following define insolvency EXCEPT:

Revocation of certificate of authority by the commissioner.