California Property & Casualty Exam
(2023) Questions And Answers
Premium bpayments breceived bby ba bbroker-agent bfrom bclients bpurchasing
bautomobile binsurance bmay bbe bmaintained bby bthe blicensee bin bany bof bthe bfollowing
binvestments bEXCEPT?
1. bHigh-yield bstocks
2. bTreasury bcertificates
3. bRepurchase bagreements
4. bUS bGovernment bbonds b- bcorrect banswers✔✔High-yield bstocks
Which bof bthe bfollowing bis beligible bfor ba bBusiness bowners bPolicy? b
1. bA bvacant bbuilding
2. bA bcredit bunion
3. bA bfurniture bstore
4. bA bsports bbar b- bcorrect banswers✔✔A bfurniture bstore
"All brisk" bcoverage bis ban bold binsurance bterm bthat, bwhen bused, brefers bto ba b?
1. bComprehensive bliability bcoverage
2. bNamed bperil bproperty bcoverage
3. bProperty bcoverage bthat bdoes bnot binclude bcoverage bfor bdamage bcaused bby bany
bperil b
4. bPolicy bthe bcontains bno bexcluded bperils b- bcorrect banswers✔✔Property bcoverage
bthat bdoes bnot binclude bcoverage bfor bdamage bcaused bby bany bperil
If ban bemployee bembezzles b$10,000 bfrom ban binsured's bcompany, bwhich btype bof
binsurance bwould bthe bemployer bneed bfor bthis bloss bto bbe bcovered?
1. bAllied blines binsurance
2. bBusiness bincome binsurance
3. bGeneral bliability binsurance
4. bCrime binsurance b- bcorrect banswers✔✔Crime binsurance
What bis bone bdifference bbetween bDP-2 band ba bDP-3?
1. bThe blimit bof bliability bunder bcoverage bD
2. bThe binside bcoverage blimit bfor bspecified bpersonal bproperty
3. bThe bperils binsured bagainst bunder bcoverage bA
,4. bThe bdefinition bof bwho bis ban binsured b- bcorrect banswers✔✔The bperils binsured
bagainst bunder bcoverage bA
The bstandard bhomeowners bpolicy bprovides breplacement bcost bcoverage bfor bwhich
bof bthe bfollowing?
1. bPersonal bproperty
2. bBusiness bpersonal bproperty
3. bTrees, bshrubs band bplants
4. bThe bdwelling bstructure b- bcorrect banswers✔✔The bdwelling bstructure
Which bof bthe bfollowing bis ba bcharacteristic bof bimprovements band bbetterments?
1. bThey bmust bbe bapproved bin badvance bby bthe bbuilding bowner
2. bThey bcan bbe binsured bas bbusiness bpersonal bproperty
3. bThey bare bmade bby bthe bbuilding bowner
4. bThe btenant bcan bremove bthem bwhen bthe blease bexpires b- bcorrect
banswers✔✔They bcan bbe binsured bas bbusiness bpersonal bproperty
Which bof bthe bfollowing bevents bwithin bthe bpast b3 byears bwould bdisqualify ban
bindividual bfrom breceiving ba bGood bDriver bDiscount?
1. bAn bat-fault baccident binvolving bonly bminor bbodily binjury
2. bA bmoving bviolation bwhile bdriving ba bcompany bcar bduring bbusiness bhours
3. bA bnon bat-fault baccident bresulting binn bthe bdeath bof ba bpassenger
4. bAn bat-fault baccident binvolving bonly bproperty bdamage b- bcorrect banswers✔✔An
bat-fault baccident binvolving bonly bminor bbodily binjury
Which bcommercial bproperty bform bcontains bmost bof bthe bexclusions bthat bapply bto ba
bcommercial bproperty bpolicy?
1. bCauses bof bLoss bForms
2. bCommon bPolicy bDeclarations
3. bCommon bPolicy bConditions
Commercial bProperty bConditions b- bcorrect banswers✔✔Causes bof bLoss bForms
In bthe bbusiness bincome bcoverage bform, b"business bincome" bis?
1. bnet bincome bplus bnon-continuing bexpenses
2. bnet bincome bplus bcontinuing bexpenses
3. bgross bincome bminus bexpenses
4. bnet bprofit bor bloss bbefore btaxes b- bcorrect banswers✔✔net bincome bplus bcontinuing
bexpenses
Which bof bthe bfollowing bis ba bcorrect bstatement babout bthe bgeneral baggregate blimit?
1. bIt bis bthe btotal blimit bfor bany boccurrence
2. bIt bis bthe btotal bof ball bthe bother bsub blimits bshown bon bthe bdeclarations bpage
3. bIt bis bthe btotal blimit bfor bany bone baccident
4. bIt bdoes bnot binclude bproduct-completed boperations baggregate blimit b- bcorrect
banswers✔✔It bdoes bnot binclude bproduct-completed boperations baggregate blimit
,How bis bthe bcombined bratio bcomputed?
1. bDivide bthe bloss bratio bby bthe bexpense bratio
2. bSubtract bthe bexpense bratio bfrom bthe bloss bratio
3. bMultiply bthe bloss bratio bby bthe bexpense bratio
4. bAdd bthe bloss band bexpense bratios b- bcorrect banswers✔✔Add bthe bloss band
bexpense bratios
Which bof bthe bfollowing bfits bwithin bthe bhomeowners bpolicy bdefinition bof ban b"insured
blocation"?
1. bAny bpart bof ba bpremises brented bto bthe binsured bfor bbusiness buse
2. bFarm bland bowned bby bthe binsured
3. bAny bpart bof ba bpremises brented bto banother bby bthe binsured
4. bFamily bcemetery bplots bowned bby bthe binsured b- bcorrect banswers✔✔Family
bcemetery bplots bowned bby bthe binsured
Which bof bthe bfollowing bis ba bprincipal brating bfactor bfor ba bpersonal bautomobile
bpolicy?
1. bThe btype bof bvehicle binsured
2. bThe bgender bof bthe binsured
3. bThe bnumber bof bmiles bthe binsured bdrives beach byear
4. bThe bgeographic blocation bof bthe binsured b- bcorrect banswers✔✔The bnumber bof
bmiles bthe binsured bdrives beach byear
If ba bnamed binsured bis bnot bthe bowner bof bthe bbuilding, bimprovements band
bbetterments bare bcovered bunder bthe?
1. bBuilding
2. bBusiness bpersonal bproperty
3. bAgreed bvalue
4. bNewly bconstructed bproperty b- bcorrect banswers✔✔Business bpersonal bproperty
Property bunder ban bunendorsed binland bmarine bpolicy bis busually bvalued bon?
1. bA breplacement bcost bbasis
2. bA btax bassed bvalue bbasis
3. bA bstated bvalue bbasis
4. bAn bactual bcash bvalue b(ACV) bbasis b- bcorrect banswers✔✔An bactual bcash bvalue
b(ACV) bbasis
Under ban bunendorsed bpersonal bautomobile bpolicy bwhat bcoverage bis bavailable bfor
bpersonal beffects?
1. bLuggage bup bto b$200
2. bLuggage band bclothing bup bto b$500
3. bAll bpersonal bproperty bin bautomobile bup bto b$5200
4. bNone, bthere bis bno bcoverage b- bcorrect banswers✔✔None, bthere bis bno bcoverage
What bis bthe bmain bpurpose bof btort blaw?
1. bTo bminimize bthe bamount bof binsurance bclaims bmade
, 2. bTo bprosecute bthe bresponsible bparty
3. bTo bassign bpunitive bdamages bto bthe bresponsible bparty
4. bTo bdetermine bresponsibility bfor bdamages b- bcorrect banswers✔✔To bdetermine
bresponsibility bfor bdamages
The bsystem bof ballocating bdamages bbetween btwo bor bmore bpeople bin bwhich bthe
bdamages bcollectible bare bdiminished bin bproportion bto bthe bpersons bdegree bof
bnegligence bis bcalled
1. bComparative bnegligence
2. bContributory bnegligence
3. bControlled bnegligence
4. bCooperative bnegligence b- bcorrect banswers✔✔Comparative bnegligence
Damages bcaused bby bearth bmovement bis bexcluded bby bmost binsurance bcontracts.
bWhich bof bthe bfollowing bpolicies, bif bany, bincludes bcoverage bfor bthis bperil bthat bis
bstandard bcoverage?
1. bDwelling bpolicy
2. bFAIR bplan
3. bStandard bHO-3 bpolicy
4. bPersonal bauto bpolicy b- bcorrect banswers✔✔Personal bauto bpolicy
Which bof bthe bfollowing bis ban bexample bof bloss bretention?
1. bA bcouple binstalls ba bsprinkler bsystem bin btheir bhome
2. bA bcouple bdecides bnot bto bpurchase bcollision bcoverage bon btheir bvehicle
3. bA bcouple bchooses bnot bto bbuy ba bmotorboat
4. bA bcouple bpurchases bhomeowners binsurance bfor btheir blake bcabin b- bcorrect
banswers✔✔A bcouple bdecides bnot bto bpurchase bcollision bcoverage bon btheir bvehicle
What bis ba bperson bguilty bof bif bhe bor bshe bacts bor bassumes bto bact bin bthe bcapacity
bof ba blicensed bagent, bbut bdoes bNOT bhave ba bvalid blicense?
1. bA bmisdemeanor
2. bAlienation
3. bSubrogation
4. bA bfelony b- bcorrect banswers✔✔A bmisdemeanor
The bretroactive bdate bof ba bclaims bmade bprofessional bliability bpolicy bis balways bthe?
1. bEffective bdate bfor bthe bcurrent bpolicy bto brenew
2. bEarliest bdate ban bevent/loss bmay boccur band bstill bbe beligible bfor brecovery
3. bDate bafter bwhich bno bmore bclaims bmay bbe bmade bunder bthe bpolicy
4. bDate bon bwhich bthe bclaims bmade bpolicy bexpires b- bcorrect banswers✔✔Earliest
bdate ban bevent/loss bmay boccur band bstill bbe beligible bfor brecovery
Yacht bpolicies btypically bprovide bcoverage bfor
1. bPhysical bdamage, bliability b& bmedical bpayments
2. bHull band bcollision
3. bHull band bprotection band bindemnity
(2023) Questions And Answers
Premium bpayments breceived bby ba bbroker-agent bfrom bclients bpurchasing
bautomobile binsurance bmay bbe bmaintained bby bthe blicensee bin bany bof bthe bfollowing
binvestments bEXCEPT?
1. bHigh-yield bstocks
2. bTreasury bcertificates
3. bRepurchase bagreements
4. bUS bGovernment bbonds b- bcorrect banswers✔✔High-yield bstocks
Which bof bthe bfollowing bis beligible bfor ba bBusiness bowners bPolicy? b
1. bA bvacant bbuilding
2. bA bcredit bunion
3. bA bfurniture bstore
4. bA bsports bbar b- bcorrect banswers✔✔A bfurniture bstore
"All brisk" bcoverage bis ban bold binsurance bterm bthat, bwhen bused, brefers bto ba b?
1. bComprehensive bliability bcoverage
2. bNamed bperil bproperty bcoverage
3. bProperty bcoverage bthat bdoes bnot binclude bcoverage bfor bdamage bcaused bby bany
bperil b
4. bPolicy bthe bcontains bno bexcluded bperils b- bcorrect banswers✔✔Property bcoverage
bthat bdoes bnot binclude bcoverage bfor bdamage bcaused bby bany bperil
If ban bemployee bembezzles b$10,000 bfrom ban binsured's bcompany, bwhich btype bof
binsurance bwould bthe bemployer bneed bfor bthis bloss bto bbe bcovered?
1. bAllied blines binsurance
2. bBusiness bincome binsurance
3. bGeneral bliability binsurance
4. bCrime binsurance b- bcorrect banswers✔✔Crime binsurance
What bis bone bdifference bbetween bDP-2 band ba bDP-3?
1. bThe blimit bof bliability bunder bcoverage bD
2. bThe binside bcoverage blimit bfor bspecified bpersonal bproperty
3. bThe bperils binsured bagainst bunder bcoverage bA
,4. bThe bdefinition bof bwho bis ban binsured b- bcorrect banswers✔✔The bperils binsured
bagainst bunder bcoverage bA
The bstandard bhomeowners bpolicy bprovides breplacement bcost bcoverage bfor bwhich
bof bthe bfollowing?
1. bPersonal bproperty
2. bBusiness bpersonal bproperty
3. bTrees, bshrubs band bplants
4. bThe bdwelling bstructure b- bcorrect banswers✔✔The bdwelling bstructure
Which bof bthe bfollowing bis ba bcharacteristic bof bimprovements band bbetterments?
1. bThey bmust bbe bapproved bin badvance bby bthe bbuilding bowner
2. bThey bcan bbe binsured bas bbusiness bpersonal bproperty
3. bThey bare bmade bby bthe bbuilding bowner
4. bThe btenant bcan bremove bthem bwhen bthe blease bexpires b- bcorrect
banswers✔✔They bcan bbe binsured bas bbusiness bpersonal bproperty
Which bof bthe bfollowing bevents bwithin bthe bpast b3 byears bwould bdisqualify ban
bindividual bfrom breceiving ba bGood bDriver bDiscount?
1. bAn bat-fault baccident binvolving bonly bminor bbodily binjury
2. bA bmoving bviolation bwhile bdriving ba bcompany bcar bduring bbusiness bhours
3. bA bnon bat-fault baccident bresulting binn bthe bdeath bof ba bpassenger
4. bAn bat-fault baccident binvolving bonly bproperty bdamage b- bcorrect banswers✔✔An
bat-fault baccident binvolving bonly bminor bbodily binjury
Which bcommercial bproperty bform bcontains bmost bof bthe bexclusions bthat bapply bto ba
bcommercial bproperty bpolicy?
1. bCauses bof bLoss bForms
2. bCommon bPolicy bDeclarations
3. bCommon bPolicy bConditions
Commercial bProperty bConditions b- bcorrect banswers✔✔Causes bof bLoss bForms
In bthe bbusiness bincome bcoverage bform, b"business bincome" bis?
1. bnet bincome bplus bnon-continuing bexpenses
2. bnet bincome bplus bcontinuing bexpenses
3. bgross bincome bminus bexpenses
4. bnet bprofit bor bloss bbefore btaxes b- bcorrect banswers✔✔net bincome bplus bcontinuing
bexpenses
Which bof bthe bfollowing bis ba bcorrect bstatement babout bthe bgeneral baggregate blimit?
1. bIt bis bthe btotal blimit bfor bany boccurrence
2. bIt bis bthe btotal bof ball bthe bother bsub blimits bshown bon bthe bdeclarations bpage
3. bIt bis bthe btotal blimit bfor bany bone baccident
4. bIt bdoes bnot binclude bproduct-completed boperations baggregate blimit b- bcorrect
banswers✔✔It bdoes bnot binclude bproduct-completed boperations baggregate blimit
,How bis bthe bcombined bratio bcomputed?
1. bDivide bthe bloss bratio bby bthe bexpense bratio
2. bSubtract bthe bexpense bratio bfrom bthe bloss bratio
3. bMultiply bthe bloss bratio bby bthe bexpense bratio
4. bAdd bthe bloss band bexpense bratios b- bcorrect banswers✔✔Add bthe bloss band
bexpense bratios
Which bof bthe bfollowing bfits bwithin bthe bhomeowners bpolicy bdefinition bof ban b"insured
blocation"?
1. bAny bpart bof ba bpremises brented bto bthe binsured bfor bbusiness buse
2. bFarm bland bowned bby bthe binsured
3. bAny bpart bof ba bpremises brented bto banother bby bthe binsured
4. bFamily bcemetery bplots bowned bby bthe binsured b- bcorrect banswers✔✔Family
bcemetery bplots bowned bby bthe binsured
Which bof bthe bfollowing bis ba bprincipal brating bfactor bfor ba bpersonal bautomobile
bpolicy?
1. bThe btype bof bvehicle binsured
2. bThe bgender bof bthe binsured
3. bThe bnumber bof bmiles bthe binsured bdrives beach byear
4. bThe bgeographic blocation bof bthe binsured b- bcorrect banswers✔✔The bnumber bof
bmiles bthe binsured bdrives beach byear
If ba bnamed binsured bis bnot bthe bowner bof bthe bbuilding, bimprovements band
bbetterments bare bcovered bunder bthe?
1. bBuilding
2. bBusiness bpersonal bproperty
3. bAgreed bvalue
4. bNewly bconstructed bproperty b- bcorrect banswers✔✔Business bpersonal bproperty
Property bunder ban bunendorsed binland bmarine bpolicy bis busually bvalued bon?
1. bA breplacement bcost bbasis
2. bA btax bassed bvalue bbasis
3. bA bstated bvalue bbasis
4. bAn bactual bcash bvalue b(ACV) bbasis b- bcorrect banswers✔✔An bactual bcash bvalue
b(ACV) bbasis
Under ban bunendorsed bpersonal bautomobile bpolicy bwhat bcoverage bis bavailable bfor
bpersonal beffects?
1. bLuggage bup bto b$200
2. bLuggage band bclothing bup bto b$500
3. bAll bpersonal bproperty bin bautomobile bup bto b$5200
4. bNone, bthere bis bno bcoverage b- bcorrect banswers✔✔None, bthere bis bno bcoverage
What bis bthe bmain bpurpose bof btort blaw?
1. bTo bminimize bthe bamount bof binsurance bclaims bmade
, 2. bTo bprosecute bthe bresponsible bparty
3. bTo bassign bpunitive bdamages bto bthe bresponsible bparty
4. bTo bdetermine bresponsibility bfor bdamages b- bcorrect banswers✔✔To bdetermine
bresponsibility bfor bdamages
The bsystem bof ballocating bdamages bbetween btwo bor bmore bpeople bin bwhich bthe
bdamages bcollectible bare bdiminished bin bproportion bto bthe bpersons bdegree bof
bnegligence bis bcalled
1. bComparative bnegligence
2. bContributory bnegligence
3. bControlled bnegligence
4. bCooperative bnegligence b- bcorrect banswers✔✔Comparative bnegligence
Damages bcaused bby bearth bmovement bis bexcluded bby bmost binsurance bcontracts.
bWhich bof bthe bfollowing bpolicies, bif bany, bincludes bcoverage bfor bthis bperil bthat bis
bstandard bcoverage?
1. bDwelling bpolicy
2. bFAIR bplan
3. bStandard bHO-3 bpolicy
4. bPersonal bauto bpolicy b- bcorrect banswers✔✔Personal bauto bpolicy
Which bof bthe bfollowing bis ban bexample bof bloss bretention?
1. bA bcouple binstalls ba bsprinkler bsystem bin btheir bhome
2. bA bcouple bdecides bnot bto bpurchase bcollision bcoverage bon btheir bvehicle
3. bA bcouple bchooses bnot bto bbuy ba bmotorboat
4. bA bcouple bpurchases bhomeowners binsurance bfor btheir blake bcabin b- bcorrect
banswers✔✔A bcouple bdecides bnot bto bpurchase bcollision bcoverage bon btheir bvehicle
What bis ba bperson bguilty bof bif bhe bor bshe bacts bor bassumes bto bact bin bthe bcapacity
bof ba blicensed bagent, bbut bdoes bNOT bhave ba bvalid blicense?
1. bA bmisdemeanor
2. bAlienation
3. bSubrogation
4. bA bfelony b- bcorrect banswers✔✔A bmisdemeanor
The bretroactive bdate bof ba bclaims bmade bprofessional bliability bpolicy bis balways bthe?
1. bEffective bdate bfor bthe bcurrent bpolicy bto brenew
2. bEarliest bdate ban bevent/loss bmay boccur band bstill bbe beligible bfor brecovery
3. bDate bafter bwhich bno bmore bclaims bmay bbe bmade bunder bthe bpolicy
4. bDate bon bwhich bthe bclaims bmade bpolicy bexpires b- bcorrect banswers✔✔Earliest
bdate ban bevent/loss bmay boccur band bstill bbe beligible bfor brecovery
Yacht bpolicies btypically bprovide bcoverage bfor
1. bPhysical bdamage, bliability b& bmedical bpayments
2. bHull band bcollision
3. bHull band bprotection band bindemnity
