CALIFORNIA PROPERTY AND CASUALTY
EXAM
POOL QUESTIONS & ANSWERS
VERIFIED & RATED A+
"What factor supportd the principle of indemnity? - Correct Answer Insurable interest"
"The provision in a property policy which states that the insured has been paid up to their insurable
interest is - Correct Answer Valuation clause"
"The intentional relinquishment of known right is - Correct Answer Waivier"
"A possibility of financially loss resulting from the ownership of property is know as - Correct Answer
insurable interest"
"The part of the policy that states the amout of coverage the insured property policy period is - Correct
Answer Declaration"
"Part of the policy that establishes limits upon the insurer and the insured with the insuance policy -
Correct Answer Conditions"
"Which are the characterics of negligence - Correct Answer Duty,breach,proximate cause, damages"
"Which of the following is not a federal program - Correct Answer Worker' compensation"
"Absolute risk(liability) is imposed - Correct Answer 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? - Correct Answer $0"
"what is the main purpose of tort law - Correct Answer to determine financial responsibillty for damage"
"what of the following is not considered an intentional tort? - Correct Answer Auto accident"
"Which of the following statements is true regarding compensatory damages? - Correct Answer There
is usually no direct correlation between the amount of general and special damages awarded to the
victim"
1|P a ge
,"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"
"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"
"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"
"a person can base his/her claim for liability on the basis of all of the following EXCEPT - Correct Answer
breach of liability"
"the term "assignment"refers to - Correct Answer the transfer of the insured's interest in a policy to
another party"
"the term "subrogation" refers to - Correct Answer 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, - Correct Answer subrogation"
"an insurance deductible is - Correct Answer the amount of covered expense that the insured pays
before the insurer pays,"
"An insurer that has a certificate of authority in California is - Correct Answer amitted"
"An applicant of insurance does not reveal information that the insurer would rely upon to issue the policy
this is/an - Correct Answer consealment"
"Which advisory organization(s) develop forms for the standard market? - Correct Answer Insurane
service office and American association of insurances"
"Which of the following would be considered special dmamges? - Correct Answer Lost wages"
"What do the initials S.tA.R.R reperesent? - Correct Answer Methods of risk mamagement"
"All of the following would be considered benfits of insurance except - Correct Answer Retention of loss
by the insured"
2|P a ge
,"What gives an insured party the right to seek compensation if it is proven that another person with
negligence contributed to the injury - Correct Answer Tort law"
"What of the following is NOT one the three main types of insurance losses - Correct Answer Financial
loss"
"In reference to the coverage's provided in the basic form, the boat owners policy is similar to what other
policy - Correct Answer the personal auto policy"
"Under the liability portion of an unendorsed personal auto policy, what coverage is available if the named
insured is operating a company car on a regular basis - Correct Answer the policy exclude this usage"
“The process where by a mutul insurer becomes a stock company is called - Correct Answer
Demutalization"
"The process whereby a stock company a mutal insurer is called - Correct Answer Mutalization"
"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, - Correct Answer Excluded under the concurrent causation"
"An open peril policy protects agaginst the loss from - Correct Answer Any peril, other than those
specifically excluded"
"All of the following are characteristics of an ideally insurable loss exposure"except" - Correct Answer
Losses that are catastrophic"
"The amount to replace property with " like property of the same quality and construction" is the
properties - Correct Answer Replacement value"
"All of the following are considered intentional torts - Correct Answer except, Assult"
"What is the difference between per accident limit in a split limit policy and single limits - Correct Answer
There is no difference"
"Which type of loss is a business retirement or disability of key employee, exposed to death retirement
or disability of key employee, - Correct Answer Personnel loss exposure"
"The amount to replace an insured's damaged property - Correct Answer less depreciation, is know as
the, Actual cash value"
"The commercial property conditions included a condition called " liberalization". The effect of this
condition is - Correct Answer To automatically apply broader coverage to the commercial property
coverage part if a policy form revision would broaden coverage without an addition premium"
3|P a ge
, "In a commercial lines program policycommon policy condition do not include which of the following as a
condition?, - Correct Answer Perils insured"
"laura is driving her own car on behalf of her employer laura's negligent operation of her car injures a
member of public. The employer may be held liable because of what is called., - Correct Answer
Vicarious liability"
"Type of exposure can be best defined as a condition or situation where the exposure to financial loss is
presented to a business owner by the injury - Correct Answer disability, death, sickness, of valuable
employee, Personnel loss exposure"
"Which of the following is also know as a human loss exposure - Correct Answer Personal loss exposure"
"Which of the following best characterize a speculative risk? - Correct Answer A situation that offers the
possibility for a loss or gain"
"In the state of CA no rate will remain in effect if it is considered to be any of the following, EXCEPT, -
Correct Answer Impartial"
"What course of action does a party to a contract have if the other party is found to be breach of that
contract - Correct Answer Damage for breach, reasonable attorney fee and cost"
"Which part of the insurance contract summarize the major promises of the insurer - Correct Answer
Insuring agreement"
"Under tort law a corporation can be subject to a claim for legal liability on the basis, - Correct Answer
Absolute liability"
"Risk management technique that eliminates a loss exposure and reduces the chance of loss to zero is -
Correct Answer Avoidance"
"A situation is which there only the possibility of loss or no loss is considered a - Correct Answer Pure
risk"
"A reduction in value of property that results immediately from damage to the property is know as -
Correct Answer Direct loss"
"Items that are paid on replacement cost is defined as the - Correct Answer Amount to replace the
damage property without a deduction for depreciation"
"A wrongful act other than a crime or breach of contrat is law - Correct Answer Tort law"
4|P a ge
EXAM
POOL QUESTIONS & ANSWERS
VERIFIED & RATED A+
"What factor supportd the principle of indemnity? - Correct Answer Insurable interest"
"The provision in a property policy which states that the insured has been paid up to their insurable
interest is - Correct Answer Valuation clause"
"The intentional relinquishment of known right is - Correct Answer Waivier"
"A possibility of financially loss resulting from the ownership of property is know as - Correct Answer
insurable interest"
"The part of the policy that states the amout of coverage the insured property policy period is - Correct
Answer Declaration"
"Part of the policy that establishes limits upon the insurer and the insured with the insuance policy -
Correct Answer Conditions"
"Which are the characterics of negligence - Correct Answer Duty,breach,proximate cause, damages"
"Which of the following is not a federal program - Correct Answer Worker' compensation"
"Absolute risk(liability) is imposed - Correct Answer 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? - Correct Answer $0"
"what is the main purpose of tort law - Correct Answer to determine financial responsibillty for damage"
"what of the following is not considered an intentional tort? - Correct Answer Auto accident"
"Which of the following statements is true regarding compensatory damages? - Correct Answer There
is usually no direct correlation between the amount of general and special damages awarded to the
victim"
1|P a ge
,"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"
"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"
"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"
"a person can base his/her claim for liability on the basis of all of the following EXCEPT - Correct Answer
breach of liability"
"the term "assignment"refers to - Correct Answer the transfer of the insured's interest in a policy to
another party"
"the term "subrogation" refers to - Correct Answer 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, - Correct Answer subrogation"
"an insurance deductible is - Correct Answer the amount of covered expense that the insured pays
before the insurer pays,"
"An insurer that has a certificate of authority in California is - Correct Answer amitted"
"An applicant of insurance does not reveal information that the insurer would rely upon to issue the policy
this is/an - Correct Answer consealment"
"Which advisory organization(s) develop forms for the standard market? - Correct Answer Insurane
service office and American association of insurances"
"Which of the following would be considered special dmamges? - Correct Answer Lost wages"
"What do the initials S.tA.R.R reperesent? - Correct Answer Methods of risk mamagement"
"All of the following would be considered benfits of insurance except - Correct Answer Retention of loss
by the insured"
2|P a ge
,"What gives an insured party the right to seek compensation if it is proven that another person with
negligence contributed to the injury - Correct Answer Tort law"
"What of the following is NOT one the three main types of insurance losses - Correct Answer Financial
loss"
"In reference to the coverage's provided in the basic form, the boat owners policy is similar to what other
policy - Correct Answer the personal auto policy"
"Under the liability portion of an unendorsed personal auto policy, what coverage is available if the named
insured is operating a company car on a regular basis - Correct Answer the policy exclude this usage"
“The process where by a mutul insurer becomes a stock company is called - Correct Answer
Demutalization"
"The process whereby a stock company a mutal insurer is called - Correct Answer Mutalization"
"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, - Correct Answer Excluded under the concurrent causation"
"An open peril policy protects agaginst the loss from - Correct Answer Any peril, other than those
specifically excluded"
"All of the following are characteristics of an ideally insurable loss exposure"except" - Correct Answer
Losses that are catastrophic"
"The amount to replace property with " like property of the same quality and construction" is the
properties - Correct Answer Replacement value"
"All of the following are considered intentional torts - Correct Answer except, Assult"
"What is the difference between per accident limit in a split limit policy and single limits - Correct Answer
There is no difference"
"Which type of loss is a business retirement or disability of key employee, exposed to death retirement
or disability of key employee, - Correct Answer Personnel loss exposure"
"The amount to replace an insured's damaged property - Correct Answer less depreciation, is know as
the, Actual cash value"
"The commercial property conditions included a condition called " liberalization". The effect of this
condition is - Correct Answer To automatically apply broader coverage to the commercial property
coverage part if a policy form revision would broaden coverage without an addition premium"
3|P a ge
, "In a commercial lines program policycommon policy condition do not include which of the following as a
condition?, - Correct Answer Perils insured"
"laura is driving her own car on behalf of her employer laura's negligent operation of her car injures a
member of public. The employer may be held liable because of what is called., - Correct Answer
Vicarious liability"
"Type of exposure can be best defined as a condition or situation where the exposure to financial loss is
presented to a business owner by the injury - Correct Answer disability, death, sickness, of valuable
employee, Personnel loss exposure"
"Which of the following is also know as a human loss exposure - Correct Answer Personal loss exposure"
"Which of the following best characterize a speculative risk? - Correct Answer A situation that offers the
possibility for a loss or gain"
"In the state of CA no rate will remain in effect if it is considered to be any of the following, EXCEPT, -
Correct Answer Impartial"
"What course of action does a party to a contract have if the other party is found to be breach of that
contract - Correct Answer Damage for breach, reasonable attorney fee and cost"
"Which part of the insurance contract summarize the major promises of the insurer - Correct Answer
Insuring agreement"
"Under tort law a corporation can be subject to a claim for legal liability on the basis, - Correct Answer
Absolute liability"
"Risk management technique that eliminates a loss exposure and reduces the chance of loss to zero is -
Correct Answer Avoidance"
"A situation is which there only the possibility of loss or no loss is considered a - Correct Answer Pure
risk"
"A reduction in value of property that results immediately from damage to the property is know as -
Correct Answer Direct loss"
"Items that are paid on replacement cost is defined as the - Correct Answer Amount to replace the
damage property without a deduction for depreciation"
"A wrongful act other than a crime or breach of contrat is law - Correct Answer Tort law"
4|P a ge
