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CALIFORNIA PROPERTY AND CASUALTY
EXAM 2025 QUESTIONS AND ANSWERS
1. The process where by a mutul insurer becomes a stock company is called -
correct answer - Demutalization
2. The process whereby a stock company a mutal insurer is called - correct answer -
Mutalization
3. The provision in a property policy which states that the insured has been paid up to
their insurable interest is - correct answer - Valuation clause
4. The part of the policy that states the amout of coverage the insured property
policy period is - correct answer - Declaration
5. Part of the policy that establishes limits upon the insurer and the insured with the
insuance policy - correct answer - Conditions
6. Which are the characterics of negligence - correct answer -
Duty,breach,proximate cause, damages
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7. Which of the following is not a federal program - correct answer - Worker'
compensation
8. Absolute risk(liability) is imposed - correct answer - When there is
negligence whether proven or not
9. X is in an accident with Y. X suffers $5000 of damage but it is determined that X is
60% responsible for the accident. How much would X receive under CONTRIBUTORY
negligence rules? - correct answer -
$0
10. what is the main purpose of tort law - correct answer - to determine financial
responsibillty for damage
11. what of the following is not considered an intentional tort? - correct answer
- Auto accident
12. Which of the following statements is true regarding compensatory
damages? - correct answer - There is usually no direct correlation between the
amount of general and special damages awarded to the victim
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13. The insurer decides not to renewan insured's personal auto policy. How
much notice must the insurer provide to the insured - correct answer - 30 days
14. an insured's loss reserve for a claim isan estimate of the amount insurer will
pay for present and future loss, which of the following is an example of loss
prevention - correct answer - a homeowner decides not to install a pool in the
backyard
15. which of the following describes the act of making a false entry in any book
statement of report of any insurer with the intent to device any examiner lawfully
appointed to examine the insured's - correct answer - an unfair practice
16. a person can base his/her claim for liability on the basis of all of the following
EXCEPT - correct answer - breach of liability
17. the term "assignment"refers to - correct answer - the transfer of the
insured's interest in a policy to another party
18. the term "subrogation" refers to - correct answer - the insured's right to
recover payment from a responsible 3rd party
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19. insur's right to recover the payment of the claim after they paid the insured
for their property losses a negligent 3rd party is know as, - correct answer -
subrogation
20. an insurance deductible is - correct answer - the amount of covered expense
that the insured pays before the insurer pays,
21. all of the following are requirements for a notice by mail to an insured by
insurer except - correct answer - notice must be sent with return receipt required
22. which of the following is considered special damages - correct answer -
Compensation for time away from work
23. Which advisory organization(s) develop forms for the standard market?
- correct answer - Insurane service office and American association of
insurances
24. Which of the following would be considered special dmamges? - correct
answer - Lost wages
CALIFORNIA PROPERTY AND CASUALTY
EXAM 2025 QUESTIONS AND ANSWERS
1. The process where by a mutul insurer becomes a stock company is called -
correct answer - Demutalization
2. The process whereby a stock company a mutal insurer is called - correct answer -
Mutalization
3. The provision in a property policy which states that the insured has been paid up to
their insurable interest is - correct answer - Valuation clause
4. The part of the policy that states the amout of coverage the insured property
policy period is - correct answer - Declaration
5. Part of the policy that establishes limits upon the insurer and the insured with the
insuance policy - correct answer - Conditions
6. Which are the characterics of negligence - correct answer -
Duty,breach,proximate cause, damages
, Page | 2
7. Which of the following is not a federal program - correct answer - Worker'
compensation
8. Absolute risk(liability) is imposed - correct answer - When there is
negligence whether proven or not
9. X is in an accident with Y. X suffers $5000 of damage but it is determined that X is
60% responsible for the accident. How much would X receive under CONTRIBUTORY
negligence rules? - correct answer -
$0
10. what is the main purpose of tort law - correct answer - to determine financial
responsibillty for damage
11. what of the following is not considered an intentional tort? - correct answer
- Auto accident
12. Which of the following statements is true regarding compensatory
damages? - correct answer - There is usually no direct correlation between the
amount of general and special damages awarded to the victim
, Page | 3
13. The insurer decides not to renewan insured's personal auto policy. How
much notice must the insurer provide to the insured - correct answer - 30 days
14. an insured's loss reserve for a claim isan estimate of the amount insurer will
pay for present and future loss, which of the following is an example of loss
prevention - correct answer - a homeowner decides not to install a pool in the
backyard
15. which of the following describes the act of making a false entry in any book
statement of report of any insurer with the intent to device any examiner lawfully
appointed to examine the insured's - correct answer - an unfair practice
16. a person can base his/her claim for liability on the basis of all of the following
EXCEPT - correct answer - breach of liability
17. the term "assignment"refers to - correct answer - the transfer of the
insured's interest in a policy to another party
18. the term "subrogation" refers to - correct answer - the insured's right to
recover payment from a responsible 3rd party
, Page | 4
19. insur's right to recover the payment of the claim after they paid the insured
for their property losses a negligent 3rd party is know as, - correct answer -
subrogation
20. an insurance deductible is - correct answer - the amount of covered expense
that the insured pays before the insurer pays,
21. all of the following are requirements for a notice by mail to an insured by
insurer except - correct answer - notice must be sent with return receipt required
22. which of the following is considered special damages - correct answer -
Compensation for time away from work
23. Which advisory organization(s) develop forms for the standard market?
- correct answer - Insurane service office and American association of
insurances
24. Which of the following would be considered special dmamges? - correct
answer - Lost wages
