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Property and Casualty Insurance Producer Exam

Auto (CA): practice questions

Our Property & Casualty Insurance bank has 12 questions on this topic. Here are 5 of them with answers; the full mock exam draws from every topic, like the real one.

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Question 1 · California

Adding a physical damage deductible of up to how much is not treated as a cancellation of a California auto policy?

  1. $250
  2. $500
  3. $100
  4. $1,000
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C. $100 — Cal. Ins. Code 661(b): including a deductible not exceeding $100 is not deemed a cancellation.

Question 2 · California

Under Proposition 103 (Cal. Ins. Code 1861.02), which auto rating factor carries the most weight?

  1. Annual miles driven
  2. The insured's driving safety record
  3. Years of driving experience
  4. The insured's ZIP code
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B. The insured's driving safety record — Cal. Ins. Code 1861.02(a): rates are determined by driving safety record, miles driven annually and years of driving experience, in decreasing order of importance.

Question 3 · California

A California auto insured who negligently misstated their driving record can avoid cancellation by giving corrected information and paying any premium difference within:

  1. 5 days after the cancellation notice
  2. 20 days after the cancellation notice
  3. 45 days after the cancellation notice
  4. 90 days
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B. 20 days after the cancellation notice — Cal. Ins. Code 661(a)(4): the insured may avoid cancellation by furnishing corrected information within 20 days after receiving notice and paying any premium difference.

Question 4 · California

In a California first-party auto total loss, the insurer must tell the insured it will reopen the claim if, within how many days of payment, the insured cannot buy a comparable car for the settlement?

  1. 10 calendar days
  2. 30 calendar days
  3. 35 calendar days
  4. 60 calendar days
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C. 35 calendar days — 10 CCR 2695.8(c): notice that if the insured notifies the insurer within 35 calendar days that a comparable automobile can't be bought for the settlement, the claim will be reopened.

Question 5 · California

Which is a valid reason to cancel a California auto policy?

  1. The named insured's driver's license has been suspended or revoked
  2. The insured had one not-at-fault accident during the policy term
  3. The insured moved within California
  4. The insured's car is older than 10 years
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A. The named insured's driver's license has been suspended or revoked — Cal. Ins. Code 661(a)(2): suspension or revocation of the license or registration of the named insured or a household or customary operator.

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