CALIFORNIA COMMERCIAL INSURANCE
EXAMINATION SCRIPT 2026 COMPLETE
QUESTIONS WITH FULL SOLUTIONS
◉ Medical books in a Doctors library at home would be best insured
under:
Answer: Pysician & Surgeons.
NOTE: The Physician & Surgeons marine form is where you would
insure the books.
◉ The definition of _________ for the Boiler and Machinery form is
sudden and accidental (not intentional) breakdown of an object.
Answer: Accident
NOTE: The definition of accident for this form is sudden and
accidental (not intentional) breakdown of an object, or a part
thereof, resulting in physical damage to the object and necessitating
repair or replacement.
◉ An employee adds an extra zero to their paycheck. This is covered
under:
Answer: Employee Dishonesty
,NOTE: Employee's dishonest acts are covered under Employee
Dishonesty coverage.
◉ The Signs Coverage form is necessary when:
Answer: An insured has more than a $1000 value in signs or has any
detached signs.
NOTE: The Commercial Property policy doesn`t cover detached
signs and typically has a limitation of $1000.
◉ Theft on the Commercial Crime coverage form includes all of the
following EXCEPT:
Burglary
Theft of stock or inventory
Robbery
Hold-up of an armored car
Answer: Theft of stock or inventory
NOTE: Coverage for theft of stock or merchandise is covered under
the CPP Coverage B, Business Personal Property.
,◉ When a claim is settled on an ACV basis, B & M equipment must
be repaired or replaced within how many months?
Answer: 18 Months
NOTE: "Claim" is the key here. A claim was opened and no repairs
were made in a timely manner. Equipment must be repaired or
replaced within 18 months or the claim is settled on an Actual Cash
Value basis.
◉ Non-filed commercial inland marine forms are also known as:
Answer: Both uncontrolled and unregulated forms.
NOTE: Non-filed forms are unregulated and uncontrolled line of
insurance.
◉ Which of the following is NOT a common exclusion on the Boiler &
Machinery policy?
Leaking of valves, joints or fittings
Loss due to safety devices not functioning properly
Property of Others, not in the insured`s care
Breakdown of refrigeration units
Answer: Breakdown of refrigeration units
, NOTE: Refrigeration units are covered for breakdown on the B & M
policy. Pg.
◉ A carrier of cargo is NOT liable for damage in all of the following
situations, EXCEPT:
Inherent Vice
A collision due to a mechanical malfunction.
Acts of God/Nature
Negligence of the shipper
Answer: A collision due to a mechanical malfunction.
NOTE: It is the obligation of the carrier to provide safe delivery of
goods and see that the trucks are in proper operating condition.
Remember, the coverage on a Common Carrier Cargo Liability form
is for inland transportation, not ocean transportation. The Ocean
Marine policy is used for water transportation.
◉ The commercial inland marine "signs" form would not insure:
None are excluded
Neon signs
EXAMINATION SCRIPT 2026 COMPLETE
QUESTIONS WITH FULL SOLUTIONS
◉ Medical books in a Doctors library at home would be best insured
under:
Answer: Pysician & Surgeons.
NOTE: The Physician & Surgeons marine form is where you would
insure the books.
◉ The definition of _________ for the Boiler and Machinery form is
sudden and accidental (not intentional) breakdown of an object.
Answer: Accident
NOTE: The definition of accident for this form is sudden and
accidental (not intentional) breakdown of an object, or a part
thereof, resulting in physical damage to the object and necessitating
repair or replacement.
◉ An employee adds an extra zero to their paycheck. This is covered
under:
Answer: Employee Dishonesty
,NOTE: Employee's dishonest acts are covered under Employee
Dishonesty coverage.
◉ The Signs Coverage form is necessary when:
Answer: An insured has more than a $1000 value in signs or has any
detached signs.
NOTE: The Commercial Property policy doesn`t cover detached
signs and typically has a limitation of $1000.
◉ Theft on the Commercial Crime coverage form includes all of the
following EXCEPT:
Burglary
Theft of stock or inventory
Robbery
Hold-up of an armored car
Answer: Theft of stock or inventory
NOTE: Coverage for theft of stock or merchandise is covered under
the CPP Coverage B, Business Personal Property.
,◉ When a claim is settled on an ACV basis, B & M equipment must
be repaired or replaced within how many months?
Answer: 18 Months
NOTE: "Claim" is the key here. A claim was opened and no repairs
were made in a timely manner. Equipment must be repaired or
replaced within 18 months or the claim is settled on an Actual Cash
Value basis.
◉ Non-filed commercial inland marine forms are also known as:
Answer: Both uncontrolled and unregulated forms.
NOTE: Non-filed forms are unregulated and uncontrolled line of
insurance.
◉ Which of the following is NOT a common exclusion on the Boiler &
Machinery policy?
Leaking of valves, joints or fittings
Loss due to safety devices not functioning properly
Property of Others, not in the insured`s care
Breakdown of refrigeration units
Answer: Breakdown of refrigeration units
, NOTE: Refrigeration units are covered for breakdown on the B & M
policy. Pg.
◉ A carrier of cargo is NOT liable for damage in all of the following
situations, EXCEPT:
Inherent Vice
A collision due to a mechanical malfunction.
Acts of God/Nature
Negligence of the shipper
Answer: A collision due to a mechanical malfunction.
NOTE: It is the obligation of the carrier to provide safe delivery of
goods and see that the trucks are in proper operating condition.
Remember, the coverage on a Common Carrier Cargo Liability form
is for inland transportation, not ocean transportation. The Ocean
Marine policy is used for water transportation.
◉ The commercial inland marine "signs" form would not insure:
None are excluded
Neon signs
