1. CA property
& Casualty
practice exam
Updated 2026
Bob is thinking about obtaining insurance because he just found out he needs extensive
surgery that will require several days in the hospital. This situation of waiting until the last
minute to obtain insurance is known as: - Answer Adverse Selection
According to the California insurance law, either party may rescind a contract for any of the
following reasons EXCEPT: - Answer
One party intentionally omits information from the other party. - Answer
If a representation is false in a material point, whether affirmative or promissory, the injured
party is entitled to rescind the contract. - Answer
Once a contract is signed, it can never be rescinded. - Answer
One party intentionally or unintentionally hides material information. - Answer
#3 - Answer
,Which of the following are the main types of risks? - Answer
Sharing and Transfer - Answer
Avoidance and Retention - Answer
Pure and Transfer - Answer
Speculative and pure - Answer
#4 - Answer
What are the two types of torts? - Answer
Intentional & Unintentional - Answer
Legal & Non-Legal - Answer
Pure & Speculative - Answer
Broad & Basic - Answer
#5 - Answer
When a right or privilege has been given up, a party cannot reassert that right or privilege.
The process of preventing the party from reasserting that right or privilege is known as: -
Answer
Indemnity - Answer
,Estoppel - Answer
Pro-rata - Answer
Waiver - Answer
#6 - Answer
Which of the following is the amount of money the insured pays before the insurer pays for
the rest of the claim? - Answer Premium
Which of the following is not a class of insurance? - Answer Casualty
A hazard is best defined as: - Answer anything that increases the chance of loss or severity of
loss due to a peril.
A hazard that deals with a persons mental attitude, behavior and habits is an example of: -
Answer Moral hazard
Restoring the insured back to the condition he or she was in before the loss occurred is
known as: - Answer Indemnification
Which of the following is defined as `an agreement between two or more parties
enforceable by law?` - Answer Contract
The uncertainty or chance of a loss occurring is known as: - Answer risk.
pure risk. - Answer
, risk management. - Answer
risk. - Answer
speculative risk. - Answer
#13 - Answer
The degree of loss a person/organization faces from suits brought by a third party refers to: -
Answer Liability Loss Exposure
Human Personnel Loss Exposure - Answer
Liability Loss Exposure - Answer
Loss Exposure - Answer
Property Exposure - Answer
#14 - Answer
The state of being subject to a loss is considered: - Answer exposure
risk - Answer
hazard - Answer
& Casualty
practice exam
Updated 2026
Bob is thinking about obtaining insurance because he just found out he needs extensive
surgery that will require several days in the hospital. This situation of waiting until the last
minute to obtain insurance is known as: - Answer Adverse Selection
According to the California insurance law, either party may rescind a contract for any of the
following reasons EXCEPT: - Answer
One party intentionally omits information from the other party. - Answer
If a representation is false in a material point, whether affirmative or promissory, the injured
party is entitled to rescind the contract. - Answer
Once a contract is signed, it can never be rescinded. - Answer
One party intentionally or unintentionally hides material information. - Answer
#3 - Answer
,Which of the following are the main types of risks? - Answer
Sharing and Transfer - Answer
Avoidance and Retention - Answer
Pure and Transfer - Answer
Speculative and pure - Answer
#4 - Answer
What are the two types of torts? - Answer
Intentional & Unintentional - Answer
Legal & Non-Legal - Answer
Pure & Speculative - Answer
Broad & Basic - Answer
#5 - Answer
When a right or privilege has been given up, a party cannot reassert that right or privilege.
The process of preventing the party from reasserting that right or privilege is known as: -
Answer
Indemnity - Answer
,Estoppel - Answer
Pro-rata - Answer
Waiver - Answer
#6 - Answer
Which of the following is the amount of money the insured pays before the insurer pays for
the rest of the claim? - Answer Premium
Which of the following is not a class of insurance? - Answer Casualty
A hazard is best defined as: - Answer anything that increases the chance of loss or severity of
loss due to a peril.
A hazard that deals with a persons mental attitude, behavior and habits is an example of: -
Answer Moral hazard
Restoring the insured back to the condition he or she was in before the loss occurred is
known as: - Answer Indemnification
Which of the following is defined as `an agreement between two or more parties
enforceable by law?` - Answer Contract
The uncertainty or chance of a loss occurring is known as: - Answer risk.
pure risk. - Answer
, risk management. - Answer
risk. - Answer
speculative risk. - Answer
#13 - Answer
The degree of loss a person/organization faces from suits brought by a third party refers to: -
Answer Liability Loss Exposure
Human Personnel Loss Exposure - Answer
Liability Loss Exposure - Answer
Loss Exposure - Answer
Property Exposure - Answer
#14 - Answer
The state of being subject to a loss is considered: - Answer exposure
risk - Answer
hazard - Answer
