Section 2 Quiz

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 remew 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

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:

Agency and principal

An insurance agent is appointed to transact:

All lines of insurance All classes of insurance All lines except 24 hr care

Which of the following is not true about relationship between an agent and a solicitor?

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

There are no binder issued in:

Any - Life insurance, health insurance, excess of $1 million

Which of the following is NOT an action a person performs when transacting insurance?

Calling an insurer for a price quote

Which of the following is NOT a type of authority given to agent?

Customary authority

Which of the following is NOT a source of information an underwriter might use t investigate an application in order to approve pr reject it?

Department of Industrial relations.

An insurer not authorized to conduct business in California would be:

Either - An unauthorized insurer, a nonadmitted insurer

A solicitor holds which license?

Either - P&C broker-agent 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 non medical professionals is available to pay for losses or defend lawsuits that might be filed against them?

Errors and Omissions

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

Express authority

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

Give true statement 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.

The following acts are unlawful and are misdemeanors in California except when performed by a surplus lines broker EXCEPT:

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

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?

Insurance adjuster

The underwriting process consists of all the following basic steps except:

Issue the rate

A broker can transact all of the following EXCEPT:

Life, Health, and disability

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

Misdemeanor.

Which of the following statement about insurance in connection with sales or loans is TRUE?

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 requirement in the purchase.

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

Personal Lines

Monitoring of existing risks is:

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 if liability insurance:

That agent use to protect themselves if they give incorrect advice or information to a client.

In which system is the agent considered an employee?

direct writing system

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

independent agency