CALIFORNIA COMMERCIAL INSURANCE
COMPREHENSIVE CERTIFICATION
EXAMINATION 2026 FULL QUESTIONS AND
VERIFIED SOLUTIONS
◉ Any licensed agent or broker may submit risks to the FAIR plan:
Answer: But there is no binding authority.
NOTE: An agent never has binding authority with the FAIR plan.
◉ Under the Building and Personal Property coverage form, vacancy
means:
Answer: Insufficient business property present to conduct
customary operations.
NOTE: The premises does not need to be completely empty to be
considered vacant.
◉ If a building has been vacant for 90 consecutive days prior to a
loss, which of the following is false?
,All of the above are true.
The loss will not be covered if due to theft or attempted theft.
The loss will not be covered if due to vandalism.
If the loss is due to a fire, it will be covered but payment is reduced
by 15%.
Answer: All of the above are true.
NOTE: The policy states if a property is vacant for more than 60 days
and the loss is due to vandalism, theft, attempted theft, sprinkler
leakage, glass breakage or water damage, there is no coverage. All
other losses are reduced in payment by 15%.
◉ All of the following may be written on a monoline basis, EXCEPT:
Ocean Marine
Inland Marine
Boiler & Machinery
General Liability
Answer: Ocean Marine
,NOTE: Ocean Marine is a completely separate policy type.
◉ On a commercial package policy, "You" and "Your" refers to:
Answer: The named insured and resident spouse.
NOTE: Not just anyone can be considered covered on the policy.
They must be NAMED or be a resident spouse.
◉ The CPP Common Condition that relates to establishing premium
is:
Answer: Inspections & Surveys
NOTE: Inspection & Survey condition address insurability and
premium to be charged.
◉ The FAIR plan does all of the following, EXCEPT:
Provides for equitable distribution among admitted insurers of the
responsibility for insuring qualified property for which basic
property insurance cannot be obtained through the normal
insurance market by the establishment of a FAIR plan.
, Establish a list of all surplus line insurers that have met the
recognized requirements for such title and shall issue a master list at
least semiannually.
Encourages maximum use of the normal insurance market provided
by admitted insurers and licensed surplus line brokers.
Assures stability in the property insurance market for property
located in California.
Answer: Establish a list of all surplus line insurers that have met the
recognized requirements for such title and shall issue a master list at
least semiannually.
NOTE: This list is the LESLI list and has nothing to do with the FAIR
plan
◉ The normal vacancy condition under a commercial lines policy
can be waived by:
Answer: Adding a Vacancy Permit endorsement.
NOTE: A vacancy permit is needed in order to waive the condition of
vacancy under a Building and Personal Property coverage form.
◉ Which of the following would be considered a "module"?
COMPREHENSIVE CERTIFICATION
EXAMINATION 2026 FULL QUESTIONS AND
VERIFIED SOLUTIONS
◉ Any licensed agent or broker may submit risks to the FAIR plan:
Answer: But there is no binding authority.
NOTE: An agent never has binding authority with the FAIR plan.
◉ Under the Building and Personal Property coverage form, vacancy
means:
Answer: Insufficient business property present to conduct
customary operations.
NOTE: The premises does not need to be completely empty to be
considered vacant.
◉ If a building has been vacant for 90 consecutive days prior to a
loss, which of the following is false?
,All of the above are true.
The loss will not be covered if due to theft or attempted theft.
The loss will not be covered if due to vandalism.
If the loss is due to a fire, it will be covered but payment is reduced
by 15%.
Answer: All of the above are true.
NOTE: The policy states if a property is vacant for more than 60 days
and the loss is due to vandalism, theft, attempted theft, sprinkler
leakage, glass breakage or water damage, there is no coverage. All
other losses are reduced in payment by 15%.
◉ All of the following may be written on a monoline basis, EXCEPT:
Ocean Marine
Inland Marine
Boiler & Machinery
General Liability
Answer: Ocean Marine
,NOTE: Ocean Marine is a completely separate policy type.
◉ On a commercial package policy, "You" and "Your" refers to:
Answer: The named insured and resident spouse.
NOTE: Not just anyone can be considered covered on the policy.
They must be NAMED or be a resident spouse.
◉ The CPP Common Condition that relates to establishing premium
is:
Answer: Inspections & Surveys
NOTE: Inspection & Survey condition address insurability and
premium to be charged.
◉ The FAIR plan does all of the following, EXCEPT:
Provides for equitable distribution among admitted insurers of the
responsibility for insuring qualified property for which basic
property insurance cannot be obtained through the normal
insurance market by the establishment of a FAIR plan.
, Establish a list of all surplus line insurers that have met the
recognized requirements for such title and shall issue a master list at
least semiannually.
Encourages maximum use of the normal insurance market provided
by admitted insurers and licensed surplus line brokers.
Assures stability in the property insurance market for property
located in California.
Answer: Establish a list of all surplus line insurers that have met the
recognized requirements for such title and shall issue a master list at
least semiannually.
NOTE: This list is the LESLI list and has nothing to do with the FAIR
plan
◉ The normal vacancy condition under a commercial lines policy
can be waived by:
Answer: Adding a Vacancy Permit endorsement.
NOTE: A vacancy permit is needed in order to waive the condition of
vacancy under a Building and Personal Property coverage form.
◉ Which of the following would be considered a "module"?
