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CALIFORNIA PROPERTY AND CASUALTY
EXAM 2026| BRAND NEW ACTUAL EXAM WITH
100% VERIFIED QUESTIONS AND CORRECT
SOLUTIONS| GUARANTEED VALUE PACK| ACE
YOUR GRADES.
1. The process where by a mutul insurer becomes a stock company is
called - correct answer - Demutalization
2. The process whereby a stock company a mutal insurer is called - correct
answer - Mutalization
3. The provision in a property policy which states that the insured has been
paid up to their insurable interest is - correct answer - Valuation clause
4. The part of the policy that states the amout of coverage the insured
property policy period is - correct answer - Declaration
5. Part of the policy that establishes limits upon the insurer and the insured
with the insuance policy - correct answer - Conditions
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6. Which are the characterics of negligence - correct answer -
Duty,breach,proximate cause, damages
7. Which of the following is not a federal program - correct answer -
Worker' compensation
8. Absolute risk(liability) is imposed - correct answer - When there is
negligence whether proven or not
9. 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? - correct answer -
$0
10. what is the main purpose of tort law - correct answer - to determine
financial responsibillty for damage
11. what of the following is not considered an intentional tort? - correct
answer - Auto accident
12. Which of the following statements is true regarding compensatory
damages? - correct answer - There is usually no direct correlation
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between the amount of general and special damages awarded to the
victim
13. The insurer decides not to renewan insured's personal auto policy.
How much notice must the insurer provide to the insured - correct
answer - 30 days
14. 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 - correct answer - a homeowner decides not
to install a pool in the backyard
15. 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 - correct answer -
an unfair practice
16. a person can base his/her claim for liability on the basis of all of the
following EXCEPT - correct answer - breach of liability
17. the term "assignment"refers to - correct answer - the transfer of the
insured's interest in a policy to another party
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18. the term "subrogation" refers to - correct answer - the insured's right
to recover payment from a responsible 3rd party
19. 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, -
correct answer - subrogation
20. an insurance deductible is - correct answer - the amount of covered
expense that the insured pays before the insurer pays,
21. all of the following are requirements for a notice by mail to an insured
by insurer except - correct answer - notice must be sent with return
receipt required
22. which of the following is considered special damages - correct
answer - Compensation for time away from work
23. Which advisory organization(s) develop forms for the standard
market? - correct answer - Insurane service office and American
association of insurances
24. Which of the following would be considered special dmamges? -
correct answer - Lost wages
CALIFORNIA PROPERTY AND CASUALTY
EXAM 2026| BRAND NEW ACTUAL EXAM WITH
100% VERIFIED QUESTIONS AND CORRECT
SOLUTIONS| GUARANTEED VALUE PACK| ACE
YOUR GRADES.
1. The process where by a mutul insurer becomes a stock company is
called - correct answer - Demutalization
2. The process whereby a stock company a mutal insurer is called - correct
answer - Mutalization
3. The provision in a property policy which states that the insured has been
paid up to their insurable interest is - correct answer - Valuation clause
4. The part of the policy that states the amout of coverage the insured
property policy period is - correct answer - Declaration
5. Part of the policy that establishes limits upon the insurer and the insured
with the insuance policy - correct answer - Conditions
, Page |2
6. Which are the characterics of negligence - correct answer -
Duty,breach,proximate cause, damages
7. Which of the following is not a federal program - correct answer -
Worker' compensation
8. Absolute risk(liability) is imposed - correct answer - When there is
negligence whether proven or not
9. 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? - correct answer -
$0
10. what is the main purpose of tort law - correct answer - to determine
financial responsibillty for damage
11. what of the following is not considered an intentional tort? - correct
answer - Auto accident
12. Which of the following statements is true regarding compensatory
damages? - correct answer - There is usually no direct correlation
, Page |3
between the amount of general and special damages awarded to the
victim
13. The insurer decides not to renewan insured's personal auto policy.
How much notice must the insurer provide to the insured - correct
answer - 30 days
14. 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 - correct answer - a homeowner decides not
to install a pool in the backyard
15. 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 - correct answer -
an unfair practice
16. a person can base his/her claim for liability on the basis of all of the
following EXCEPT - correct answer - breach of liability
17. the term "assignment"refers to - correct answer - the transfer of the
insured's interest in a policy to another party
, Page |4
18. the term "subrogation" refers to - correct answer - the insured's right
to recover payment from a responsible 3rd party
19. 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, -
correct answer - subrogation
20. an insurance deductible is - correct answer - the amount of covered
expense that the insured pays before the insurer pays,
21. all of the following are requirements for a notice by mail to an insured
by insurer except - correct answer - notice must be sent with return
receipt required
22. which of the following is considered special damages - correct
answer - Compensation for time away from work
23. Which advisory organization(s) develop forms for the standard
market? - correct answer - Insurane service office and American
association of insurances
24. Which of the following would be considered special dmamges? -
correct answer - Lost wages
