California property and casualty exam
questions and answers graded A
The process where by a mutul insurer becomes a stock company is called ✔✔Demutalization
The process whereby a stock company a mutal insurer is called ✔✔Mutalization
The provision in a property policy which states that the insured has been paid up to their insurable
interest is ✔✔Valuation clause
The part of the policy that states the amout of coverage the insured property policy period is
✔✔Declaration
Part of the policy that establishes limits upon the insurer and the insured with the insuance policy
✔✔Conditions
Which are the characterics of negligence ✔✔Duty,breach,proximate cause, damages
Which of the following is not a federal program ✔✔Worker' compensation
Absolute risk(liability) is imposed ✔✔When there is negligence whether proven or not
,X is in an accident with Y. X suffers $5000 of damage but it is determined that X is 60%
responsible for the accident. How much would X receive under CONTRIBUTORY negligence
rules? ✔✔$0
what is the main purpose of tort law ✔✔to determine financial responsibillty for damage
what of the following is not considered an intentional tort? ✔✔Auto accident
Which of the following statements is true regarding compensatory damages? ✔✔There is usually
no direct correlation between the amount of general and special damages awarded to the victim
The insurer decides not to renewan insured's personal auto policy. How much notice must the
insurer provide to the insured ✔✔30 days
an insured's loss reserve for a claim isan estimate of the amount insurer will pay for present and
future loss, which of the following is an example of loss prevention ✔✔a homeowner decides not
to install a pool in the backyard
which of the following describes the act of making a false entry in any book statement of report of
any insurer with the intent to device any examiner lawfully appointed to examine the insured's
✔✔an unfair practice
,a person can base his/her claim for liability on the basis of all of the following EXCEPT ✔✔breach
of liability
the term "assignment"refers to ✔✔the transfer of the insured's interest in a policy to another party
the term "subrogation" refers to ✔✔the insured's right to recover payment from a responsible 3rd
party
insur's right to recover the payment of the claim after they paid the insured for their property losses
a negligent 3rd party is know as, ✔✔subrogation
an insurance deductible is ✔✔the amount of covered expense that the insured pays before the
insurer pays,
all of the following are requirements for a notice by mail to an insured by insurer except ✔✔notice
must be sent with return receipt required
which of the following is considered special damages ✔✔Compensation for time away from work
Which advisory organization(s) develop forms for the standard market? ✔✔Insurane service office
and American association of insurances
, Which of the following would be considered special dmamges? ✔✔Lost wages
What do the initials S.tA.R.R reperesent? ✔✔Methods of risk mamagement
All of the following would be considered benfits of insurance except ✔✔Retention of loss by the
insured
What gives an insured party the right to seek compensation if it is proven that another person with
negligence contributed to the injury ✔✔Tort law
What of the following is NOT one the three main types of insurance losses ✔✔Financial loss
Under a special cause of loss form if a landslide is caused by an unnatural flow of water due to
improper grading, the loss is, ✔✔Excluded under the concurrent causation
An open peril policy protects agaginst the loss from ✔✔Any peril, other than those specifically
excluded
What factor supportd the principle of indemnity? ✔✔Insurable interest
All of the following are characteristics of an ideally insurable loss exposure"except" ✔✔Losses
that are catastrophic
questions and answers graded A
The process where by a mutul insurer becomes a stock company is called ✔✔Demutalization
The process whereby a stock company a mutal insurer is called ✔✔Mutalization
The provision in a property policy which states that the insured has been paid up to their insurable
interest is ✔✔Valuation clause
The part of the policy that states the amout of coverage the insured property policy period is
✔✔Declaration
Part of the policy that establishes limits upon the insurer and the insured with the insuance policy
✔✔Conditions
Which are the characterics of negligence ✔✔Duty,breach,proximate cause, damages
Which of the following is not a federal program ✔✔Worker' compensation
Absolute risk(liability) is imposed ✔✔When there is negligence whether proven or not
,X is in an accident with Y. X suffers $5000 of damage but it is determined that X is 60%
responsible for the accident. How much would X receive under CONTRIBUTORY negligence
rules? ✔✔$0
what is the main purpose of tort law ✔✔to determine financial responsibillty for damage
what of the following is not considered an intentional tort? ✔✔Auto accident
Which of the following statements is true regarding compensatory damages? ✔✔There is usually
no direct correlation between the amount of general and special damages awarded to the victim
The insurer decides not to renewan insured's personal auto policy. How much notice must the
insurer provide to the insured ✔✔30 days
an insured's loss reserve for a claim isan estimate of the amount insurer will pay for present and
future loss, which of the following is an example of loss prevention ✔✔a homeowner decides not
to install a pool in the backyard
which of the following describes the act of making a false entry in any book statement of report of
any insurer with the intent to device any examiner lawfully appointed to examine the insured's
✔✔an unfair practice
,a person can base his/her claim for liability on the basis of all of the following EXCEPT ✔✔breach
of liability
the term "assignment"refers to ✔✔the transfer of the insured's interest in a policy to another party
the term "subrogation" refers to ✔✔the insured's right to recover payment from a responsible 3rd
party
insur's right to recover the payment of the claim after they paid the insured for their property losses
a negligent 3rd party is know as, ✔✔subrogation
an insurance deductible is ✔✔the amount of covered expense that the insured pays before the
insurer pays,
all of the following are requirements for a notice by mail to an insured by insurer except ✔✔notice
must be sent with return receipt required
which of the following is considered special damages ✔✔Compensation for time away from work
Which advisory organization(s) develop forms for the standard market? ✔✔Insurane service office
and American association of insurances
, Which of the following would be considered special dmamges? ✔✔Lost wages
What do the initials S.tA.R.R reperesent? ✔✔Methods of risk mamagement
All of the following would be considered benfits of insurance except ✔✔Retention of loss by the
insured
What gives an insured party the right to seek compensation if it is proven that another person with
negligence contributed to the injury ✔✔Tort law
What of the following is NOT one the three main types of insurance losses ✔✔Financial loss
Under a special cause of loss form if a landslide is caused by an unnatural flow of water due to
improper grading, the loss is, ✔✔Excluded under the concurrent causation
An open peril policy protects agaginst the loss from ✔✔Any peril, other than those specifically
excluded
What factor supportd the principle of indemnity? ✔✔Insurable interest
All of the following are characteristics of an ideally insurable loss exposure"except" ✔✔Losses
that are catastrophic
