California Personal Lines Broker Test Exam
Questions And Correct Answers (Verified
Answers) Plus Rationales 2026/2027 Q&A | Instant
Download Pdf
Save
Terms in this set (300)
A-1. Insurance is a contract whereby Damage
one undertakes to indemnify another
against:
A-2. A peril is: The actual cause of a loss.
A-3. The uncertainty or chance of a Risk
loss occurring is known as:
,A-4. Which are the main types of Pure and Speculative
risks?
A-5. A hazard is best defined as: Anything that increases the chance of loss or
severity of loss due to a peril.
A-6. A hazard that deals with a A Moral hazard.
person`s mental attitude, behavior
and habits is an example of:
A-7. The law of large numbers is a The larger the amount of information gathered, the
principal that basically says: more reliable that information will be.
A-8. The term loss exposure refers to: The possibility of a loss.
A-9. The degree of loss a Liability loss exposure.
person/organization faces from suits
brought by a third party refers to:
A-10. Which of the following is NOT The loss must occur on the insured's property.
required for a risk to be ideally
insurable?
The loss must be an accident.
The loss must be definite and
measurable.
The loss must occur on the insured`s
property.
The loss must create economic
hardship.
, A-11. Any contingent or unknown The more insurable it becomes.
event, whether past or future, which
may damnify a person having an
insurable interest or create a liability
against him/her, may be insured
against. The more unpredictable a
loss becomes:
A-12. Restoring the insured back to Indemnification
the condition he or she was in before
the loss occurred is known as:
A-13. The process of reviewing Underwriting
applications for insurance and the
information on the application is:
A-14. Which of the following is NOT a Bond Insurance companies are not considered
known private insurer? insurers.
Reciprocal Insurance Exchanges
Mutual Insurance Companies
Bond Insurance Companies
Stock Insurance Companies
Questions And Correct Answers (Verified
Answers) Plus Rationales 2026/2027 Q&A | Instant
Download Pdf
Save
Terms in this set (300)
A-1. Insurance is a contract whereby Damage
one undertakes to indemnify another
against:
A-2. A peril is: The actual cause of a loss.
A-3. The uncertainty or chance of a Risk
loss occurring is known as:
,A-4. Which are the main types of Pure and Speculative
risks?
A-5. A hazard is best defined as: Anything that increases the chance of loss or
severity of loss due to a peril.
A-6. A hazard that deals with a A Moral hazard.
person`s mental attitude, behavior
and habits is an example of:
A-7. The law of large numbers is a The larger the amount of information gathered, the
principal that basically says: more reliable that information will be.
A-8. The term loss exposure refers to: The possibility of a loss.
A-9. The degree of loss a Liability loss exposure.
person/organization faces from suits
brought by a third party refers to:
A-10. Which of the following is NOT The loss must occur on the insured's property.
required for a risk to be ideally
insurable?
The loss must be an accident.
The loss must be definite and
measurable.
The loss must occur on the insured`s
property.
The loss must create economic
hardship.
, A-11. Any contingent or unknown The more insurable it becomes.
event, whether past or future, which
may damnify a person having an
insurable interest or create a liability
against him/her, may be insured
against. The more unpredictable a
loss becomes:
A-12. Restoring the insured back to Indemnification
the condition he or she was in before
the loss occurred is known as:
A-13. The process of reviewing Underwriting
applications for insurance and the
information on the application is:
A-14. Which of the following is NOT a Bond Insurance companies are not considered
known private insurer? insurers.
Reciprocal Insurance Exchanges
Mutual Insurance Companies
Bond Insurance Companies
Stock Insurance Companies
