Page | 1
CALIFORNIA PROPERTY AND CASUALTY
EXAM 2025 WITH 100% VERIFIED
QUESTIONS AND CORRECT SOLUTIONS
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
CALIFORNIA PROPERTY AND CASUALTY
EXAM 2025 WITH 100% VERIFIED
QUESTIONS AND CORRECT SOLUTIONS
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
