Quiz: 2

Any person who transacts insurance without a valid license is guilty of a misdemeanor, punishable by a fine not exceeding ______.

$50,000

A lender does have the right to provide insurance or renew the insurance and charge a transaction fee if the borrower fails to deliver proof of insurance at least ____ days before the policy expires.

30

Binders can be extended how many additional days?

60 days

Which of the following is not true about the relationship between an agent and a solicitor? A person appointed by an agent to seek out and receive applications for new insureds as a representative of the agent. A solicitor must be licensed but does not hold the power to issue coverage. An agent or broker cannot transact as a solicitor, An agent represents the company, whereas the solicitor is an assistant to an agent and has no binding authority.but a solicitor can transact as a broker or agent. A solicitor may give premium quotes over the phone, just like an agent. A solicitor cannot be employed by more than one fire and casualty broker/agent at the same time.

An agent or broker cannot transact as a solicitor, but a solicitor can transact as a broker or agent.

Which marketing system does the insurer not own the expiration list?

An independent agency

There are no binders issued in:

Any of the above life insurance in health insurance excess of 1 million

Which of the following is NOT an action a person performs when transacting insurance? Any transactions that later result from the operation of the contract Calling an insurer for a price quote The actual execution of a contract Solicitation of insurance

Calling an insurer for a price quote

Which of the following is NOT a type of authority given to agents? Implied authority Apparent authority Express authority Customary authority

Customary authority

Which of the following is NOT a source of information an underwriter might use to investigate an application in order to approve or reject it? Department of Motor Vehicles Medical Information Bureau Department of Industrial Relations Financial Reports

Department of Industrial Relations

In which system is the agent considered an employee?

Direct writing system

A solicitor holds which license? A solicitor's license Either P&C broker-agent or Personal lines broker-agent P&C broker-agent Personal lines broker-agent

Either P&C or personal lines broker- agent

If an agent gives incorrect advice or unknowingly provides incorrect information to the client, which of the following liability insurance policies for nonmedical professionals is available to pay for losses or defend lawsuits that might be filed against him?

Errors and Omissions

In a legal relationship, which authority does a principal (company) give the agent in writing? Express authority Implied authority Apparent authority Customary authority

Express authority

Which of the following is a responsibility of the insured in an insurance contract?

Give true statements and information on the application.

Which of the following actions would not be considered transacting insurance? Handing a prospect a business card and asking them for information. Giving a price quote over the phone. Collecting premium for a policy. Emailing a prospect a auto quote.

Handing a prospect a business card and asking them for information

In which of the following marketing distribution systems does the agent represent more than one insurer and more than one company?

Independent agency

Which of the following would not require a license? Independent Adjuster All require a license Public Adjuster Insurance Adjuster

Insurance Adjuster

The underwriting process consists of all of the following basic steps except: Gather necessary information Issue the rate Monitor the decision Implement the decision

Issue the rate

A broker can transact all of the following EXCEPT: Casualty insurance Personal Lines property insurance Life, health, and disability insurance

Life, health, and disability insurance

Which of the following statements about insurance in connection with sales or loans is TRUE? A person approved by the Commissioner may be required to be involved in the business of financing the purchase of real estate. This person would act as the agent in purchasing insurance for the real estate. No person involved in the business of financing the purchase of real estate may require the purchase of insurance through a specific agent as part of the requirements in the purchase except an agent licensed with the state of California. No person involved in the business of financing the purchase of real estate may require the purchase of insurance through a specific agent as part of the requirements in the purchase. A person involved in the business of financing the purchase of real estate may require the purchase of insurance through a specific agent if the agent is employed by that company.

No person involved in the business of financing the purchase of real estate may require the purchase of insurance through a specific agent as part of the requirements in the purchase.

A _____________ licensee is authorized to transact ONLY the following lines of insurance: Automobile, recreational vehicles (noncommercial purposes), personal watercraft, residential property, earthquake, flood, inland marine, umbrella (excess liability).

Personal Lines

A person licensed as a broker/agent shall be deemed to be:

acting as an insurance agent in the transaction of insurance placed with those for whom a notice of appointment has been filed with the Commissioner

Law of agency is the relationship between:

agent and principal

An insurance agent is appointed to transact: all are incorrect all classes of insurance all lines of insurance' all lines except 24hr care

all are incorrect

An insurer not authorized to conduct business in California would be: a non-admitted insurer either of these an unauthorized insurer neither of these

either of these a non-admitted insurer and unauthorized insurer

The following acts are unlawful and are misdemeanors in California except when performed by a surplus lines broker EXCEPT: In any other manner, aiding a nonadmitted insurer to transact insurance business in this state. In any manner, advertising for a nonadmitted insurer in this state. I n any manner, advertising for an admitted insurer in this state. Acting as agent for a nonadmitted insurer in the transaction of insurance business in this state.

in any manner, advertising for an admitted insurer in this state.

When dealing with insurance in connection with sales or loans, violating the legal provisions specified by California law is considered a:

misdemeanor

Monitoring of existing risks is: post-selection a code requirement conditional underwriting pre-selection

post-selection

The application is the document that:

states the name of the insured, the premium, and other facts that help the insurer decide whether to accept or reject it.

Errors and omissions is a type of liability insurance:

that agents use to protect themselves if they give incorrect advice or information to a client.