General Insurance PrinciplesQuestion 601 of 716
Errors and omissions (E&O) insurance protects a producer against:
a.Claims of negligence or unintentional mistakes made while providing professional services
b.The various state premium taxes the producer becomes obligated to pay on the business written each year
c.The cost of renewing a license
d.Intentional criminal or fraudulent acts
Explanation
E&O covers a producer's unintentional errors and professional negligence, but not intentional wrongdoing. It has nothing to do with license fees or premium taxes.
This topic, taught in full in the California Life & Health Insurance Producer Exam guide. California Life & Health Insurance Producer Exam — Complete Study Guide (2026) — PDF + EPUB, $19.99 · 14-day refund →
Practice all 716 questions free — no signup required.
Own the complete California Life & Health Insurance Producer Exam guide — PDF + EPUB, $19.99 →
Related questions on this topic
- Requiring a borrower to buy insurance from a particular agent as a condition of receiving a loan is an example of:
- A producer who holds premiums collected from clients before remitting them to the insurer is acting in a ________ capacity and must not commingle those funds:
- Commingling, a violation of a producer's fiduciary duty, means:
- In insurance, a 'replacement' occurs when a new policy is purchased and an existing policy is:
- Replacement regulations exist primarily to:
- In a replacement transaction, the producer generally must:
Last reviewed: · editorial process
PrepPass team · Verified against California Life & Health Insurance License Exam · How we review
Reviewed by John Zihao Zhang — California-Licensed Life Insurance Agent (CA Dept. of Insurance License #4396095 — verify)