California Property And Casualty Exam
Questions And Answers
The bprocess bwhere bby ba bmutul binsurer bbecomes ba bstock bcompany bis bcalled b-
bcorrect banswers✔✔Demutalization
The bprocess bwhereby ba bstock bcompany ba bmutal binsurer bis bcalled b- bcorrect
banswers✔✔Mutalization
The bprovision bin ba bproperty bpolicy bwhich bstates bthat bthe binsured bhas bbeen bpaid
bup bto btheir binsurable binterest bis b- bcorrect banswers✔✔Valuation bclause
The bpart bof bthe bpolicy bthat bstates bthe bamout bof bcoverage bthe binsured bproperty
bpolicy bperiod bis b- bcorrect banswers✔✔Declaration
Part bof bthe bpolicy bthat bestablishes blimits bupon bthe binsurer band bthe binsured bwith
bthe binsuance bpolicy b- bcorrect banswers✔✔Conditions
Which bare bthe bcharacterics bof bnegligence b- bcorrect
banswers✔✔Duty,breach,proximate bcause, bdamages
Which bof bthe bfollowing bis bnot ba bfederal bprogram b- bcorrect banswers✔✔Worker'
bcompensation
Absolute brisk(liability) bis bimposed b- bcorrect banswers✔✔When bthere bis bnegligence
bwhether bproven bor bnot
X bis bin ban baccident bwith bY. bX bsuffers b$5000 bof bdamage bbut bit bis bdetermined bthat
bX bis b60% bresponsible bfor bthe baccident. bHow bmuch bwould bX breceive bunder
bCONTRIBUTORY bnegligence brules? b- bcorrect banswers✔✔$0
what bis bthe bmain bpurpose bof btort blaw b- bcorrect banswers✔✔to bdetermine bfinancial
bresponsibillty bfor bdamage
what bof bthe bfollowing bis bnot bconsidered ban bintentional btort? b- bcorrect
banswers✔✔Auto baccident
,Which bof bthe bfollowing bstatements bis btrue bregarding bcompensatory bdamages? b-
bcorrect banswers✔✔There bis busually bno bdirect bcorrelation bbetween bthe bamount bof
bgeneral band bspecial bdamages bawarded bto bthe bvictim
The binsurer bdecides bnot bto brenewan binsured's bpersonal bauto bpolicy. bHow bmuch
bnotice bmust bthe binsurer bprovide bto bthe binsured b- bcorrect banswers✔✔30 bdays
an binsured's bloss breserve bfor ba bclaim bisan bestimate bof bthe bamount binsurer bwill
bpay bfor bpresent band bfuture bloss, bwhich bof bthe bfollowing bis ban bexample bof bloss
bprevention b- bcorrect banswers✔✔a bhomeowner bdecides bnot bto binstall ba bpool bin
bthe bbackyard
which bof bthe bfollowing bdescribes bthe bact bof bmaking ba bfalse bentry bin bany bbook
bstatement bof breport bof bany binsurer bwith bthe bintent bto bdevice bany bexaminer
blawfully bappointed bto bexamine bthe binsured's b- bcorrect banswers✔✔an bunfair
bpractice
a bperson bcan bbase bhis/her bclaim bfor bliability bon bthe bbasis bof ball bof bthe bfollowing
bEXCEPT b- bcorrect banswers✔✔breach bof bliability
the bterm b"assignment"refers bto b- bcorrect banswers✔✔the btransfer bof bthe binsured's
binterest bin ba bpolicy bto banother bparty
the bterm b"subrogation" brefers bto b- bcorrect banswers✔✔the binsured's bright bto
brecover bpayment bfrom ba bresponsible b3rd bparty
insur's bright bto brecover bthe bpayment bof bthe bclaim bafter bthey bpaid bthe binsured bfor
btheir bproperty blosses ba bnegligent b3rd bparty bis bknow bas, b- bcorrect
banswers✔✔subrogation
an binsurance bdeductible bis b- bcorrect banswers✔✔the bamount bof bcovered bexpense
bthat bthe binsured bpays bbefore bthe binsurer bpays,
all bof bthe bfollowing bare brequirements bfor ba bnotice bby bmail bto ban binsured bby
binsurer bexcept b- bcorrect banswers✔✔notice bmust bbe bsent bwith breturn breceipt
brequired
which bof bthe bfollowing bis bconsidered bspecial bdamages b- bcorrect
banswers✔✔Compensation bfor btime baway bfrom bwork
Which badvisory borganization(s) bdevelop bforms bfor bthe bstandard bmarket? b- bcorrect
banswers✔✔Insurane bservice boffice band bAmerican bassociation bof binsurances
Which bof bthe bfollowing bwould bbe bconsidered bspecial bdmamges? b- bcorrect
banswers✔✔Lost bwages
,What bdo bthe binitials bS.tA.R.R breperesent? b- bcorrect banswers✔✔Methods bof brisk
bmamagement
All bof bthe bfollowing bwould bbe bconsidered bbenfits bof binsurance bexcept b- bcorrect
banswers✔✔Retention bof bloss bby bthe binsured
What bgives ban binsured bparty bthe bright bto bseek bcompensation bif bit bis bproven bthat
banother bperson bwith bnegligence bcontributed bto bthe binjury b- bcorrect
banswers✔✔Tort blaw
What bof bthe bfollowing bis bNOT bone bthe bthree bmain btypes bof binsurance blosses b-
bcorrect banswers✔✔Financial bloss
Under ba bspecial bcause bof bloss bform bif ba blandslide bis bcaused bby ban bunnatural
bflow bof bwater bdue bto bimproper bgrading, bthe bloss bis, b- bcorrect
banswers✔✔Excluded bunder bthe bconcurrent bcausation
An bopen bperil bpolicy bprotects bagaginst bthe bloss bfrom b- bcorrect banswers✔✔Any
bperil, bother bthan bthose bspecifically bexcluded
What bfactor bsupportd bthe bprinciple bof bindemnity? b- bcorrect banswers✔✔Insurable
binterest
All bof bthe bfollowing bare bcharacteristics bof ban bideally binsurable bloss
bexposure"except" b- bcorrect banswers✔✔Losses bthat bare bcatastrophic
The bamount bto breplace bproperty bwith b" blike bproperty bof bthe bsame bquality band
bconstruction" bis bthe bproperties b- bcorrect banswers✔✔Replacement bvalue
All bof bthe bfollowing bare bconsidered bintentional btorts b- bcorrect banswers✔✔except,
bAssult
What bis bthe bdifference bbetween bper baccident blimit bin ba bsplit blimit bpolicy band
bsingle blimits b- bcorrect banswers✔✔There bis bno bdifference
The bintentional brelinquishment bof bknown bright bis b- bcorrect banswers✔✔Waivier
Which btype bof bloss bis ba bbusiness bretirement bor bdisability bof bkey bemployee,
bexposed bto bdeath bretirement bor bdisability bof bkey bemployee, b- bcorrect
banswers✔✔Personnel bloss bexposure
The bamount bto breplace ban binsured's bdamaged bproperty b- bcorrect banswers✔✔less
bdepreciation, bis bknow bas bthe, bActual bcash bvalue
The bcommercial bproperty bconditions bincluded ba bcondition bcalled b" bliberalization".
bThe beffect bof bthis bcondition bis b- bcorrect banswers✔✔To bautomatically bapply
, bbroader bcoverage bto bthe bcommercial bproperty bcoverage bpart bif ba bpolicy bform
brevision bwould bbroaden bcoverage bwithout ban baddition bpremium
In ba bcommercial blines bprogram bpolicycommon bpolicy bcondition bdo bnot binclude
bwhich bof bthe bfollowing bas ba bcondition?, b- bcorrect banswers✔✔Perils binsured
A bpossibility bof bfinancially bloss bresulting bfrom bthe bownership bof bproperty bis bknow
bas b- bcorrect banswers✔✔insurable binterest
laura bis bdriving bher bown bcar bon bbehalf bof bher bemployer blaura's bnegligent
boperation bof bher bcar binjures ba bmember bof bpublic. bThe bemployer bmay bbe bheld
bliable bbecause bof bwhat bis bcalled., b- bcorrect banswers✔✔Vicarious bliability
Type bof bexposure bcan bbe bbest bdefined bas ba bcondition bor bsituation bwhere bthe
bexposure bto bfinancial bloss bis bpresented bto ba bbusiness bowner bby bthe binjury b-
bcorrect banswers✔✔disability, bdeath, bsickness, bof bvaluable bemployee, bPersonnel
bloss bexposure
Which bof bthe bfollowing bis balso bknow bas ba bhuman bloss bexposure b- bcorrect
banswers✔✔Personal bloss bexposure
Which bof bthe bfollowing bbest bcharacterize ba bspeculative brisk? b- bcorrect
banswers✔✔A bsituation bthat boffers bthe bpossibility bfor ba bloss bor bgain
In bthe bstate bof bCA bno brate bwill bremain bin beffect bif bit bis bconsidered bto bbe bany bof
bthe bfollowing, bEXCEPT, b- bcorrect banswers✔✔Impartial
What bcourse bof baction bdoes ba bparty bto ba bcontract bhave bif bthe bother bparty bis
bfound bto bbe bbreach bof bthat bcontract b- bcorrect banswers✔✔Damage bfor bbreach,
breasonable battorney bfee band bcost
Which bpart bof bthe binsurance bcontract bsummarize bthe bmajor bpromises bof bthe
binsurer b- bcorrect banswers✔✔Insuring bagreement
Under btort blaw ba bcorporation bcan bbe bsubject bto ba bclaim bfor blegal bliability bon bthe
bbasis, b- bcorrect banswers✔✔Absolute bliability
Risk bmanagement btechnique bthat beliminates ba bloss bexposure band breduces bthe
bchance bof bloss bto bzero bis b- bcorrect banswers✔✔Avoidance
A bsituation bis bwhich bthere bonly bthe bpossibility bof bloss bor bno bloss bis bconsidered ba
b- bcorrect banswers✔✔Pure brisk
A breduction bin bvalue bof bproperty bthat bresults bimmediately bfrom bdamage bto bthe
bproperty bis bknow bas b- bcorrect banswers✔✔Direct bloss
Questions And Answers
The bprocess bwhere bby ba bmutul binsurer bbecomes ba bstock bcompany bis bcalled b-
bcorrect banswers✔✔Demutalization
The bprocess bwhereby ba bstock bcompany ba bmutal binsurer bis bcalled b- bcorrect
banswers✔✔Mutalization
The bprovision bin ba bproperty bpolicy bwhich bstates bthat bthe binsured bhas bbeen bpaid
bup bto btheir binsurable binterest bis b- bcorrect banswers✔✔Valuation bclause
The bpart bof bthe bpolicy bthat bstates bthe bamout bof bcoverage bthe binsured bproperty
bpolicy bperiod bis b- bcorrect banswers✔✔Declaration
Part bof bthe bpolicy bthat bestablishes blimits bupon bthe binsurer band bthe binsured bwith
bthe binsuance bpolicy b- bcorrect banswers✔✔Conditions
Which bare bthe bcharacterics bof bnegligence b- bcorrect
banswers✔✔Duty,breach,proximate bcause, bdamages
Which bof bthe bfollowing bis bnot ba bfederal bprogram b- bcorrect banswers✔✔Worker'
bcompensation
Absolute brisk(liability) bis bimposed b- bcorrect banswers✔✔When bthere bis bnegligence
bwhether bproven bor bnot
X bis bin ban baccident bwith bY. bX bsuffers b$5000 bof bdamage bbut bit bis bdetermined bthat
bX bis b60% bresponsible bfor bthe baccident. bHow bmuch bwould bX breceive bunder
bCONTRIBUTORY bnegligence brules? b- bcorrect banswers✔✔$0
what bis bthe bmain bpurpose bof btort blaw b- bcorrect banswers✔✔to bdetermine bfinancial
bresponsibillty bfor bdamage
what bof bthe bfollowing bis bnot bconsidered ban bintentional btort? b- bcorrect
banswers✔✔Auto baccident
,Which bof bthe bfollowing bstatements bis btrue bregarding bcompensatory bdamages? b-
bcorrect banswers✔✔There bis busually bno bdirect bcorrelation bbetween bthe bamount bof
bgeneral band bspecial bdamages bawarded bto bthe bvictim
The binsurer bdecides bnot bto brenewan binsured's bpersonal bauto bpolicy. bHow bmuch
bnotice bmust bthe binsurer bprovide bto bthe binsured b- bcorrect banswers✔✔30 bdays
an binsured's bloss breserve bfor ba bclaim bisan bestimate bof bthe bamount binsurer bwill
bpay bfor bpresent band bfuture bloss, bwhich bof bthe bfollowing bis ban bexample bof bloss
bprevention b- bcorrect banswers✔✔a bhomeowner bdecides bnot bto binstall ba bpool bin
bthe bbackyard
which bof bthe bfollowing bdescribes bthe bact bof bmaking ba bfalse bentry bin bany bbook
bstatement bof breport bof bany binsurer bwith bthe bintent bto bdevice bany bexaminer
blawfully bappointed bto bexamine bthe binsured's b- bcorrect banswers✔✔an bunfair
bpractice
a bperson bcan bbase bhis/her bclaim bfor bliability bon bthe bbasis bof ball bof bthe bfollowing
bEXCEPT b- bcorrect banswers✔✔breach bof bliability
the bterm b"assignment"refers bto b- bcorrect banswers✔✔the btransfer bof bthe binsured's
binterest bin ba bpolicy bto banother bparty
the bterm b"subrogation" brefers bto b- bcorrect banswers✔✔the binsured's bright bto
brecover bpayment bfrom ba bresponsible b3rd bparty
insur's bright bto brecover bthe bpayment bof bthe bclaim bafter bthey bpaid bthe binsured bfor
btheir bproperty blosses ba bnegligent b3rd bparty bis bknow bas, b- bcorrect
banswers✔✔subrogation
an binsurance bdeductible bis b- bcorrect banswers✔✔the bamount bof bcovered bexpense
bthat bthe binsured bpays bbefore bthe binsurer bpays,
all bof bthe bfollowing bare brequirements bfor ba bnotice bby bmail bto ban binsured bby
binsurer bexcept b- bcorrect banswers✔✔notice bmust bbe bsent bwith breturn breceipt
brequired
which bof bthe bfollowing bis bconsidered bspecial bdamages b- bcorrect
banswers✔✔Compensation bfor btime baway bfrom bwork
Which badvisory borganization(s) bdevelop bforms bfor bthe bstandard bmarket? b- bcorrect
banswers✔✔Insurane bservice boffice band bAmerican bassociation bof binsurances
Which bof bthe bfollowing bwould bbe bconsidered bspecial bdmamges? b- bcorrect
banswers✔✔Lost bwages
,What bdo bthe binitials bS.tA.R.R breperesent? b- bcorrect banswers✔✔Methods bof brisk
bmamagement
All bof bthe bfollowing bwould bbe bconsidered bbenfits bof binsurance bexcept b- bcorrect
banswers✔✔Retention bof bloss bby bthe binsured
What bgives ban binsured bparty bthe bright bto bseek bcompensation bif bit bis bproven bthat
banother bperson bwith bnegligence bcontributed bto bthe binjury b- bcorrect
banswers✔✔Tort blaw
What bof bthe bfollowing bis bNOT bone bthe bthree bmain btypes bof binsurance blosses b-
bcorrect banswers✔✔Financial bloss
Under ba bspecial bcause bof bloss bform bif ba blandslide bis bcaused bby ban bunnatural
bflow bof bwater bdue bto bimproper bgrading, bthe bloss bis, b- bcorrect
banswers✔✔Excluded bunder bthe bconcurrent bcausation
An bopen bperil bpolicy bprotects bagaginst bthe bloss bfrom b- bcorrect banswers✔✔Any
bperil, bother bthan bthose bspecifically bexcluded
What bfactor bsupportd bthe bprinciple bof bindemnity? b- bcorrect banswers✔✔Insurable
binterest
All bof bthe bfollowing bare bcharacteristics bof ban bideally binsurable bloss
bexposure"except" b- bcorrect banswers✔✔Losses bthat bare bcatastrophic
The bamount bto breplace bproperty bwith b" blike bproperty bof bthe bsame bquality band
bconstruction" bis bthe bproperties b- bcorrect banswers✔✔Replacement bvalue
All bof bthe bfollowing bare bconsidered bintentional btorts b- bcorrect banswers✔✔except,
bAssult
What bis bthe bdifference bbetween bper baccident blimit bin ba bsplit blimit bpolicy band
bsingle blimits b- bcorrect banswers✔✔There bis bno bdifference
The bintentional brelinquishment bof bknown bright bis b- bcorrect banswers✔✔Waivier
Which btype bof bloss bis ba bbusiness bretirement bor bdisability bof bkey bemployee,
bexposed bto bdeath bretirement bor bdisability bof bkey bemployee, b- bcorrect
banswers✔✔Personnel bloss bexposure
The bamount bto breplace ban binsured's bdamaged bproperty b- bcorrect banswers✔✔less
bdepreciation, bis bknow bas bthe, bActual bcash bvalue
The bcommercial bproperty bconditions bincluded ba bcondition bcalled b" bliberalization".
bThe beffect bof bthis bcondition bis b- bcorrect banswers✔✔To bautomatically bapply
, bbroader bcoverage bto bthe bcommercial bproperty bcoverage bpart bif ba bpolicy bform
brevision bwould bbroaden bcoverage bwithout ban baddition bpremium
In ba bcommercial blines bprogram bpolicycommon bpolicy bcondition bdo bnot binclude
bwhich bof bthe bfollowing bas ba bcondition?, b- bcorrect banswers✔✔Perils binsured
A bpossibility bof bfinancially bloss bresulting bfrom bthe bownership bof bproperty bis bknow
bas b- bcorrect banswers✔✔insurable binterest
laura bis bdriving bher bown bcar bon bbehalf bof bher bemployer blaura's bnegligent
boperation bof bher bcar binjures ba bmember bof bpublic. bThe bemployer bmay bbe bheld
bliable bbecause bof bwhat bis bcalled., b- bcorrect banswers✔✔Vicarious bliability
Type bof bexposure bcan bbe bbest bdefined bas ba bcondition bor bsituation bwhere bthe
bexposure bto bfinancial bloss bis bpresented bto ba bbusiness bowner bby bthe binjury b-
bcorrect banswers✔✔disability, bdeath, bsickness, bof bvaluable bemployee, bPersonnel
bloss bexposure
Which bof bthe bfollowing bis balso bknow bas ba bhuman bloss bexposure b- bcorrect
banswers✔✔Personal bloss bexposure
Which bof bthe bfollowing bbest bcharacterize ba bspeculative brisk? b- bcorrect
banswers✔✔A bsituation bthat boffers bthe bpossibility bfor ba bloss bor bgain
In bthe bstate bof bCA bno brate bwill bremain bin beffect bif bit bis bconsidered bto bbe bany bof
bthe bfollowing, bEXCEPT, b- bcorrect banswers✔✔Impartial
What bcourse bof baction bdoes ba bparty bto ba bcontract bhave bif bthe bother bparty bis
bfound bto bbe bbreach bof bthat bcontract b- bcorrect banswers✔✔Damage bfor bbreach,
breasonable battorney bfee band bcost
Which bpart bof bthe binsurance bcontract bsummarize bthe bmajor bpromises bof bthe
binsurer b- bcorrect banswers✔✔Insuring bagreement
Under btort blaw ba bcorporation bcan bbe bsubject bto ba bclaim bfor blegal bliability bon bthe
bbasis, b- bcorrect banswers✔✔Absolute bliability
Risk bmanagement btechnique bthat beliminates ba bloss bexposure band breduces bthe
bchance bof bloss bto bzero bis b- bcorrect banswers✔✔Avoidance
A bsituation bis bwhich bthere bonly bthe bpossibility bof bloss bor bno bloss bis bconsidered ba
b- bcorrect banswers✔✔Pure brisk
A breduction bin bvalue bof bproperty bthat bresults bimmediately bfrom bdamage bto bthe
bproperty bis bknow bas b- bcorrect banswers✔✔Direct bloss
