PERSONAL LINES INSURANCE CA
COMPLETE EXAM PREP STUDY GUIDE
WITH PRACTICE QUESTIONS, ANSWERS
AND COMPREHENSIVE CALIFORNIA
INSURANCE REVIEW | GRADED A+ |
GUARANTEED SUCCESS
Updated 2026 Questions and Answers | 100% Verified
Exam Prep
,_____________ Reinsurance is accepted or rejected by a case by Facultative
case basis.
The fact that an insured would profit from a loss, would be a Indemnity
violation of the principle of ___________.
The determination of acceptable risks is the primary function Underwriter
of the ___________ .
Underwriters like to select insureds who's actual losses will be True
similar to expected losses. True or False?
When rates cannot be used until they are improved by the Prior Approval
department or division of insurance, they are called ____ ________
rates.
The termination of a policy by either the insured or insurer Cancellation
before its expiration date is known as ___________.
When the insurer cancels a property policy, the unearned Pro Rata
premium is returned ___ ____.
When an insured requests cancellation of a policy, the Short Rate
unearned premium is refunded to the insured on a _____ _____.
A fire is considered to be a _____ of a potential loss. Cause
A document that provides temporary insurance coverage until Binder
a policy is issued is known as a ______.
The process by which a disputed claim is decided by a neutral Arbitration
third party is known as ___________.
_________ _________ is a situation where there are two causes Concurrent Causation
resulting in a loss, with one of the causes excluded and the
other cause of loss not excluded.
, If two or more policies provide identical coverage for the Concurrent
same risk, the policies are deemed to be __________.
Policy A is written for $100,000, and an excess Policy B is A= $20,000 ; B= $0
written for $200,000 on the same property. In the event of a
$20,000 loss, how much will each policy pay?
A building that has neither occupants nor personal property is Vacant
______.
When property is damaged by fire, the loss is said to be a(n) Direct
______ loss.
If a fire on a premises caused a power outage, which caused Indirect Loss
meat in the freezer to spoil, would the meat spoilage be
considered a direct loss or indirect loss?
Open peril policies include losses caused by theft. True or True
False?
If a property owner does not desire any deduction for Replacement Cost
depreciation following a covered loss, he/she should
purchase a ___________ ____ policy.
For replacement cost coverage to apply in dwelling policies, 80
the insured must carry insurance at least equal to ____% of the
cost of replacement of the building.
Would a stated amount method of valuation likely be used No
when insuring gold bullion?
An ____ policy is one that the value of the subject matter is not Open
agreed upon, but is left to be ascertained in case of loss.
A valued policy is one that expresses on it's face an True
agreement that the thing insured is valued at a specific sum.
True or False?
COMPLETE EXAM PREP STUDY GUIDE
WITH PRACTICE QUESTIONS, ANSWERS
AND COMPREHENSIVE CALIFORNIA
INSURANCE REVIEW | GRADED A+ |
GUARANTEED SUCCESS
Updated 2026 Questions and Answers | 100% Verified
Exam Prep
,_____________ Reinsurance is accepted or rejected by a case by Facultative
case basis.
The fact that an insured would profit from a loss, would be a Indemnity
violation of the principle of ___________.
The determination of acceptable risks is the primary function Underwriter
of the ___________ .
Underwriters like to select insureds who's actual losses will be True
similar to expected losses. True or False?
When rates cannot be used until they are improved by the Prior Approval
department or division of insurance, they are called ____ ________
rates.
The termination of a policy by either the insured or insurer Cancellation
before its expiration date is known as ___________.
When the insurer cancels a property policy, the unearned Pro Rata
premium is returned ___ ____.
When an insured requests cancellation of a policy, the Short Rate
unearned premium is refunded to the insured on a _____ _____.
A fire is considered to be a _____ of a potential loss. Cause
A document that provides temporary insurance coverage until Binder
a policy is issued is known as a ______.
The process by which a disputed claim is decided by a neutral Arbitration
third party is known as ___________.
_________ _________ is a situation where there are two causes Concurrent Causation
resulting in a loss, with one of the causes excluded and the
other cause of loss not excluded.
, If two or more policies provide identical coverage for the Concurrent
same risk, the policies are deemed to be __________.
Policy A is written for $100,000, and an excess Policy B is A= $20,000 ; B= $0
written for $200,000 on the same property. In the event of a
$20,000 loss, how much will each policy pay?
A building that has neither occupants nor personal property is Vacant
______.
When property is damaged by fire, the loss is said to be a(n) Direct
______ loss.
If a fire on a premises caused a power outage, which caused Indirect Loss
meat in the freezer to spoil, would the meat spoilage be
considered a direct loss or indirect loss?
Open peril policies include losses caused by theft. True or True
False?
If a property owner does not desire any deduction for Replacement Cost
depreciation following a covered loss, he/she should
purchase a ___________ ____ policy.
For replacement cost coverage to apply in dwelling policies, 80
the insured must carry insurance at least equal to ____% of the
cost of replacement of the building.
Would a stated amount method of valuation likely be used No
when insuring gold bullion?
An ____ policy is one that the value of the subject matter is not Open
agreed upon, but is left to be ascertained in case of loss.
A valued policy is one that expresses on it's face an True
agreement that the thing insured is valued at a specific sum.
True or False?
