PERSONAL LINES CALIFORNIA EXAM QUESTIONS
WITH CORRECT ANSWERS 2025/2026
The one basic characteristic of any type of insurance is that the insured is returned to the same
status that existed prior to the loss, but without a chance for gain or profit - CORRECT ANSWER -
true
Which of the following coverages does an open peril policy provide? - CORRECT ANSWER -perils
other than those specifically names as being excluded
Determine the actual cash value in the following situation: Original price of office equipment
when purchased (8 years ago)-$9000, depreciated amount at the time of fire- $5K, current
replacement cost- $12K - CORRECT ANSWER -$7K
The continuing education requirements that a personal lines broker/agent must fulfill as
required by the DOI are which of the following? - CORRECT ANSWER -24 hours during each 2-
year license term
AnRindividualRwhoRlivesRnextRtoRaRnuclearRpowerRplantRisRexposedRtoRwhichRofRtheRfollowingRtypesR
ofRhazards?R-RCORRECTRANSWERR-physical
OfRtheRfollowing,RwhichRisRtheRtrueRcharacteristicRaboutRinsurance?R-RCORRECTRANSWERR-
itRisRconsideredRaRmethodRofRtransferringRrisk.
WITH CORRECT ANSWERS 2025/2026
The one basic characteristic of any type of insurance is that the insured is returned to the same
status that existed prior to the loss, but without a chance for gain or profit - CORRECT ANSWER -
true
Which of the following coverages does an open peril policy provide? - CORRECT ANSWER -perils
other than those specifically names as being excluded
Determine the actual cash value in the following situation: Original price of office equipment
when purchased (8 years ago)-$9000, depreciated amount at the time of fire- $5K, current
replacement cost- $12K - CORRECT ANSWER -$7K
The continuing education requirements that a personal lines broker/agent must fulfill as
required by the DOI are which of the following? - CORRECT ANSWER -24 hours during each 2-
year license term
AnRindividualRwhoRlivesRnextRtoRaRnuclearRpowerRplantRisRexposedRtoRwhichRofRtheRfollowingRtypesR
ofRhazards?R-RCORRECTRANSWERR-physical
OfRtheRfollowing,RwhichRisRtheRtrueRcharacteristicRaboutRinsurance?R-RCORRECTRANSWERR-
itRisRconsideredRaRmethodRofRtransferringRrisk.