California Property and Casualty Exam with All Correct &
100% Verified Answers |Actual Complete Update |
Already Graded A+
The process where by a mutul insurer becomes a stock company is called ✔Correct Answer-
Demutalization
The process whereby a stock company a mutal insurer is called ✔Correct Answer-Mutalization
The provision in a property policy which states that the insured has been paid up to their
insurable interest is ✔Correct Answer-Valuation clause
The part of the policy that states the amout of coverage the insured property policy period is
✔Correct Answer-Declaration
Part of the policy that establishes limits upon the insurer and the insured with the insuance
policy ✔Correct Answer-Conditions
Which are the characterics of negligence ✔Correct Answer-Duty,breach,proximate cause,
damages
Which of the following is not a federal program ✔Correct Answer-Worker' compensation
Absolute risk(liability) is imposed ✔Correct Answer-When there is negligence whether proven
or not
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
what is the main purpose of tort law ✔Correct Answer-to determine financial responsibillty
for damage
what of the following is not considered an intentional tort? ✔Correct Answer-Auto accident
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
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
,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
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
a person can base his/her claim for liability on the basis of all of the following EXCEPT
✔Correct Answer-breach of liability
the term "assignment"refers to ✔Correct Answer-the transfer of the insured's interest in a
policy to another party
the term "subrogation" refers to ✔Correct Answer-the insured's right to recover payment
from a responsible 3rd party
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
an insurance deductible is ✔Correct Answer-the amount of covered expense that the insured
pays before the insurer pays,
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
which of the following is considered special damages ✔Correct Answer-Compensation for
time away from work
Which advisory organization(s) develop forms for the standard market? ✔Correct Answer-
Insurane service office and American association of insurances
Which of the following would be considered special dmamges? ✔Correct Answer-Lost wages
What do the initials S.tA.R.R reperesent? ✔Correct Answer-Methods of risk mamagement
All of the following would be considered benfits of insurance except ✔Correct Answer-
Retention of loss by the insured
What gives an insured party the right to seek compensation if it is proven that another person
with negligence contributed to the injury ✔Correct Answer-Tort law
,What of the following is NOT one the three main types of insurance losses ✔Correct Answer-
Financial loss
Under a special cause of loss form if a landslide is caused by an unnatural flow of water due to
improper grading, the loss is, ✔Correct Answer-Excluded under the concurrent causation
An open peril policy protects agaginst the loss from ✔Correct Answer-Any peril, other than
those specifically excluded
What factor supportd the principle of indemnity? ✔Correct Answer-Insurable interest
All of the following are characteristics of an ideally insurable loss exposure"except" ✔Correct
Answer-Losses that are catastrophic
The amount to replace property with " like property of the same quality and construction" is the
properties ✔Correct Answer-Replacement value
All of the following are considered intentional torts ✔Correct Answer-except, Assult
What is the difference between per accident limit in a split limit policy and single limits
✔Correct Answer-There is no difference
The intentional relinquishment of known right is ✔Correct Answer-Waivier
Which type of loss is a business retirement or disability of key employee, exposed to death
retirement or disability of key employee, ✔Correct Answer-Personnel loss exposure
The amount to replace an insured's damaged property ✔Correct Answer-less depreciation, is
know as the, Actual cash value
The commercial property conditions included a condition called " liberalization". The effect of
this condition is ✔Correct Answer-To automatically apply broader coverage to the commercial
property coverage part if a policy form revision would broaden coverage without an addition
premium
In a commercial lines program policycommon policy condition do not include which of the
following as a condition?, ✔Correct Answer-Perils insured
A possibility of financially loss resulting from the ownership of property is know as ✔Correct
Answer-insurable interest
laura is driving her own car on behalf of her employer laura's negligent operation of her car
injures a member of public. The employer may be held liable because of what is called.,
✔Correct Answer-Vicarious liability
, Type of exposure can be best defined as a condition or situation where the exposure to financial
loss is presented to a business owner by the injury ✔Correct Answer-disability, death,
sickness, of valuable employee, Personnel loss exposure
Which of the following is also know as a human loss exposure ✔Correct Answer-Personal loss
exposure
Which of the following best characterize a speculative risk? ✔Correct Answer-A situation that
offers the possibility for a loss or gain
In the state of CA no rate will remain in effect if it is considered to be any of the following,
EXCEPT, ✔Correct Answer-Impartial
What course of action does a party to a contract have if the other party is found to be breach of
that contract ✔Correct Answer-Damage for breach, reasonable attorney fee and cost
Which part of the insurance contract summarize the major promises of the insurer ✔Correct
Answer-Insuring agreement
Under tort law a corporation can be subject to a claim for legal liability on the basis, ✔Correct
Answer-Absolute liability
Risk management technique that eliminates a loss exposure and reduces the chance of loss to
zero is ✔Correct Answer-Avoidance
A situation is which there only the possibility of loss or no loss is considered a ✔Correct
Answer-Pure risk
A reduction in value of property that results immediately from damage to the property is know
as ✔Correct Answer-Direct loss
Items that are paid on replacement cost is defined as the ✔Correct Answer-Amount to
replace the damage property without a deduction for depreciation
A wrongful act other than a crime or breach of contrat is law ✔Correct Answer-Tort law
The amount to replace property with like property of the same quality and construction is the
✔Correct Answer-Replacement cost
Whatis the process whereby insurers decides which customers to insure and what coverage to
offer ✔Correct Answer-Underwriting
100% Verified Answers |Actual Complete Update |
Already Graded A+
The process where by a mutul insurer becomes a stock company is called ✔Correct Answer-
Demutalization
The process whereby a stock company a mutal insurer is called ✔Correct Answer-Mutalization
The provision in a property policy which states that the insured has been paid up to their
insurable interest is ✔Correct Answer-Valuation clause
The part of the policy that states the amout of coverage the insured property policy period is
✔Correct Answer-Declaration
Part of the policy that establishes limits upon the insurer and the insured with the insuance
policy ✔Correct Answer-Conditions
Which are the characterics of negligence ✔Correct Answer-Duty,breach,proximate cause,
damages
Which of the following is not a federal program ✔Correct Answer-Worker' compensation
Absolute risk(liability) is imposed ✔Correct Answer-When there is negligence whether proven
or not
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
what is the main purpose of tort law ✔Correct Answer-to determine financial responsibillty
for damage
what of the following is not considered an intentional tort? ✔Correct Answer-Auto accident
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
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
,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
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
a person can base his/her claim for liability on the basis of all of the following EXCEPT
✔Correct Answer-breach of liability
the term "assignment"refers to ✔Correct Answer-the transfer of the insured's interest in a
policy to another party
the term "subrogation" refers to ✔Correct Answer-the insured's right to recover payment
from a responsible 3rd party
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
an insurance deductible is ✔Correct Answer-the amount of covered expense that the insured
pays before the insurer pays,
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
which of the following is considered special damages ✔Correct Answer-Compensation for
time away from work
Which advisory organization(s) develop forms for the standard market? ✔Correct Answer-
Insurane service office and American association of insurances
Which of the following would be considered special dmamges? ✔Correct Answer-Lost wages
What do the initials S.tA.R.R reperesent? ✔Correct Answer-Methods of risk mamagement
All of the following would be considered benfits of insurance except ✔Correct Answer-
Retention of loss by the insured
What gives an insured party the right to seek compensation if it is proven that another person
with negligence contributed to the injury ✔Correct Answer-Tort law
,What of the following is NOT one the three main types of insurance losses ✔Correct Answer-
Financial loss
Under a special cause of loss form if a landslide is caused by an unnatural flow of water due to
improper grading, the loss is, ✔Correct Answer-Excluded under the concurrent causation
An open peril policy protects agaginst the loss from ✔Correct Answer-Any peril, other than
those specifically excluded
What factor supportd the principle of indemnity? ✔Correct Answer-Insurable interest
All of the following are characteristics of an ideally insurable loss exposure"except" ✔Correct
Answer-Losses that are catastrophic
The amount to replace property with " like property of the same quality and construction" is the
properties ✔Correct Answer-Replacement value
All of the following are considered intentional torts ✔Correct Answer-except, Assult
What is the difference between per accident limit in a split limit policy and single limits
✔Correct Answer-There is no difference
The intentional relinquishment of known right is ✔Correct Answer-Waivier
Which type of loss is a business retirement or disability of key employee, exposed to death
retirement or disability of key employee, ✔Correct Answer-Personnel loss exposure
The amount to replace an insured's damaged property ✔Correct Answer-less depreciation, is
know as the, Actual cash value
The commercial property conditions included a condition called " liberalization". The effect of
this condition is ✔Correct Answer-To automatically apply broader coverage to the commercial
property coverage part if a policy form revision would broaden coverage without an addition
premium
In a commercial lines program policycommon policy condition do not include which of the
following as a condition?, ✔Correct Answer-Perils insured
A possibility of financially loss resulting from the ownership of property is know as ✔Correct
Answer-insurable interest
laura is driving her own car on behalf of her employer laura's negligent operation of her car
injures a member of public. The employer may be held liable because of what is called.,
✔Correct Answer-Vicarious liability
, Type of exposure can be best defined as a condition or situation where the exposure to financial
loss is presented to a business owner by the injury ✔Correct Answer-disability, death,
sickness, of valuable employee, Personnel loss exposure
Which of the following is also know as a human loss exposure ✔Correct Answer-Personal loss
exposure
Which of the following best characterize a speculative risk? ✔Correct Answer-A situation that
offers the possibility for a loss or gain
In the state of CA no rate will remain in effect if it is considered to be any of the following,
EXCEPT, ✔Correct Answer-Impartial
What course of action does a party to a contract have if the other party is found to be breach of
that contract ✔Correct Answer-Damage for breach, reasonable attorney fee and cost
Which part of the insurance contract summarize the major promises of the insurer ✔Correct
Answer-Insuring agreement
Under tort law a corporation can be subject to a claim for legal liability on the basis, ✔Correct
Answer-Absolute liability
Risk management technique that eliminates a loss exposure and reduces the chance of loss to
zero is ✔Correct Answer-Avoidance
A situation is which there only the possibility of loss or no loss is considered a ✔Correct
Answer-Pure risk
A reduction in value of property that results immediately from damage to the property is know
as ✔Correct Answer-Direct loss
Items that are paid on replacement cost is defined as the ✔Correct Answer-Amount to
replace the damage property without a deduction for depreciation
A wrongful act other than a crime or breach of contrat is law ✔Correct Answer-Tort law
The amount to replace property with like property of the same quality and construction is the
✔Correct Answer-Replacement cost
Whatis the process whereby insurers decides which customers to insure and what coverage to
offer ✔Correct Answer-Underwriting
