California Property and Casualty Exam
Questions and Answers
Which Disability income policy has the highest premium? - Answer- 30 day elimination;
5 year benefit
All of the following were common law defenses under previous employer defenses
except: - Answer- Comparative negligence
Risk Retention Groups are: - Answer- liability insurers owned by their policyholders
Services that an HMO are required to provide are referred to as which of the following -
Answer- Basic services
The commissioner may license an organization as an: - Answer- insurance claims
analysis bureau
A disability income policy will do which of the following - Answer- Replace a portion of
the insureds income if they become disabled
Long-term care policies may not be cancelled or non-renewed on the grounds of age. -
Answer- true
Under the conversion privilege how long does an insured switching over from a group
health package to a personal health policy have? - Answer- 31 days
Which of the following would NOT be considered an insured under the homeowner's
policy? - Answer- 65 year old uncle residing off the premises
Organizers of HMOs include commercial insurers, hospitals, employers, unions, and
local communities. - Answer- true
In addition to ISO a commercial crime program falls under Jurisdiction of - Answer-
Surety Association of America
If a building insured under a commercial property policy was vacant for 60 days, what
perils are excluded? - Answer- Vandalism, theft, breakage of glass, sprinkler leakage,
and water damage
, Which of the following is correct about hospice care? - Answer- It is a provided
coverage under part A of Medicare
What is true about Workers Comp. Insurance? - Answer- Employers are responsible for
the cost of their employee
What is a difference between surety bonds and insurance policies? - Answer- Surety
bonds are 3 party contracts, insurance policies are 2 party contracts
All of the following are implied warranties under an Ocean Marine Policy EXCEPT: -
Answer- Cost of Insurance Coverage
Social security was invented to create a sense of stability and benefits for retired
workers. Social security was meant to establish what? - Answer- Minimum floor for the
participants
An insured building suffers a $180,000 fire loss. There is an 80% coinsurance clause,
and the building value is $600,000. If at the time of loss the insured carried $500,000 of
commercial property coverage on the building, how much will the insurer pay for the
loss? - Answer- $180,000 minus the deductible
Which of the following is NOT a party to a surety bond? - Answer- Bondsman
Which of the following is true regarding commercial umbrella insurance policies? -
Answer- They are written on an excess basis
Mobile Equipment Form - Answer- is NOT a coverage form under a Commercial Auto
Policy
Most workers compensation policies are written for 1 year terms. - Answer- true
A person licensed as either a property and casualty agent/broker or as an accident and
health agent may be authorized to transact disability insurance for an admitted insurer
by filing a notice of appointment from that insurer. This is known as: - Answer- Dual
Authority
HMO's, PPO's, and POS, are referred to as what kind of care? - Answer- Managed care
Which of the following could offset the effects of not having a disability income policy: -
Answer- cash savings
Which of the following is NOT one of the three extensions of coverage under the special
form? - Answer- Collapse
If coverage exists under both an occurrence and a claims-made policy, how will the
policies share the loss? - Answer- The claims-made policy will provide excess coverage
Questions and Answers
Which Disability income policy has the highest premium? - Answer- 30 day elimination;
5 year benefit
All of the following were common law defenses under previous employer defenses
except: - Answer- Comparative negligence
Risk Retention Groups are: - Answer- liability insurers owned by their policyholders
Services that an HMO are required to provide are referred to as which of the following -
Answer- Basic services
The commissioner may license an organization as an: - Answer- insurance claims
analysis bureau
A disability income policy will do which of the following - Answer- Replace a portion of
the insureds income if they become disabled
Long-term care policies may not be cancelled or non-renewed on the grounds of age. -
Answer- true
Under the conversion privilege how long does an insured switching over from a group
health package to a personal health policy have? - Answer- 31 days
Which of the following would NOT be considered an insured under the homeowner's
policy? - Answer- 65 year old uncle residing off the premises
Organizers of HMOs include commercial insurers, hospitals, employers, unions, and
local communities. - Answer- true
In addition to ISO a commercial crime program falls under Jurisdiction of - Answer-
Surety Association of America
If a building insured under a commercial property policy was vacant for 60 days, what
perils are excluded? - Answer- Vandalism, theft, breakage of glass, sprinkler leakage,
and water damage
, Which of the following is correct about hospice care? - Answer- It is a provided
coverage under part A of Medicare
What is true about Workers Comp. Insurance? - Answer- Employers are responsible for
the cost of their employee
What is a difference between surety bonds and insurance policies? - Answer- Surety
bonds are 3 party contracts, insurance policies are 2 party contracts
All of the following are implied warranties under an Ocean Marine Policy EXCEPT: -
Answer- Cost of Insurance Coverage
Social security was invented to create a sense of stability and benefits for retired
workers. Social security was meant to establish what? - Answer- Minimum floor for the
participants
An insured building suffers a $180,000 fire loss. There is an 80% coinsurance clause,
and the building value is $600,000. If at the time of loss the insured carried $500,000 of
commercial property coverage on the building, how much will the insurer pay for the
loss? - Answer- $180,000 minus the deductible
Which of the following is NOT a party to a surety bond? - Answer- Bondsman
Which of the following is true regarding commercial umbrella insurance policies? -
Answer- They are written on an excess basis
Mobile Equipment Form - Answer- is NOT a coverage form under a Commercial Auto
Policy
Most workers compensation policies are written for 1 year terms. - Answer- true
A person licensed as either a property and casualty agent/broker or as an accident and
health agent may be authorized to transact disability insurance for an admitted insurer
by filing a notice of appointment from that insurer. This is known as: - Answer- Dual
Authority
HMO's, PPO's, and POS, are referred to as what kind of care? - Answer- Managed care
Which of the following could offset the effects of not having a disability income policy: -
Answer- cash savings
Which of the following is NOT one of the three extensions of coverage under the special
form? - Answer- Collapse
If coverage exists under both an occurrence and a claims-made policy, how will the
policies share the loss? - Answer- The claims-made policy will provide excess coverage
