Ca P And C Insurance Practice Questions Pdf

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. {Ans: 1. An annual payment has been received by the insurer.}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. {Ans: 2. The broker does not transact on behalf of an insurer, while the agent does.}When can a person who sells real property require the use of a specific insurance agent, broker or