California Property and Casualty Exam Questions and answers, 100% Accurate.

California Property and Casualty Exam Questions and answers, 100% Accurate. Which of the following is incorrect? Part A covers long term care Part A covers hospital care Part B covers physicians Part B requires monthly premium payments - Part A covers long term care Medical payments coverage under the personal auto policy applies for medical bills insured up to how long after an accident? One year Five years Three years Two years - Three years Workers Comp. Part. I covers: All sums the insurer is required to pay by state law All sums the insurer will pay when deemed necessary All sums the insurer is required to pay by common law All sums the insurer is required to pay by federal law - All sums the insurer is required to pay by state law The two major sublines of general liability coverage are: Products and completed operations Products and completed operations and advertising liability Premises operations and product liability Premises/operations and products and completed operations - Premises/operations and products and completed operations Which of the following would NOT be covered under a typical homeowners policy? Music CDs Model aircraft Dog house Land - Land Medi-Cal will cover what part of medicare with no premium or deductible for the eligible? Part C Part A Part B Part D - Part D Flood insurance provided by NFIP is available for: businesses and their contents homes and their contents mobile homes and condos all of the choices - all of the choices Coverage under a general liability policy written for a U.S. insured would apply in Japan under which of the following circumstance? The insured accidentally injures another while in Japan on vacation There is an injury resulting from the insureds product which was made in France An individual buys the insureds product in the United States, but is injured when using the product in Japan The insured is flying to Japan from the United States - An individual buys the insureds product in the United States, but is injured when using the product in Japan Which of the following is NOT a party to a surety bond? Surety Principal Bondsman Obligee - Bondsman The Boiler and Machinery limit of insurance is written as: As an Aggregate Limit Any of the choices A single limit of insurance per policy period A single limit of insurance per accident - A single limit of insurance per accident A self-insured retention acts as a deductible and applies to claims covered by an umbrella policy, but excluded by an underlying policy in a personal umbrella. The S.I.R. ranges from $250 to: $1,500 $1,000 $500 $750 - $1,000 A fiduciary is: a person who has no financial responsibility whatsoever. a person who is in a position of financial trust. buys and sells used autos for a nominal fee. a person that handles cash in excess of $10,000 every month without any oversight. - a person who is in a position of financial trust. All of the following are listed on the Boiler and Machinery Declaration page EXCEPT: Boiler and Machinery Exclusions Mailing Address of named insured Loss payee and address Mortgage holders and address - Boiler and Machinery Exclusions All of the following are listed on the Boiler and Machinery Declaration page EXCEPT: Boiler and Machinery Exclusions Mailing Address of named insured Mortgage holders and address Loss payee and address - Boiler and Machinery Exclusions Which of the following would be considered covered property under a commercial property coverage form? Outdoor sign Building foundation below ground level Satellite dish Stock - Stock All of the following would be eligible for coverage under a BOP except: Self Storage Facility Office Building with 4 stories Bank Motel - Bank A newly acquired auto is to replace a covered auto that has liability coverage only. How long will the insured have to request collision coverage on the new auto: 20 days 30 days 14 days 4 days - 4 days Which of the following types of personal property would NOT be covered under a homeowners policy? Pets Money Watercraft Jewelry - Pets In a surety bond the party that pays the premium would be: Bondsman Obligee Surety Principal - Principal Things that increase the likelihood of a loss or the seriousness of a loss are called: perils hazards risks open perils - hazards In Boiler and Machinery Insurance a substantial portion of the premium is used for: Inspection Agents Commission Advertising Claims Purposes - Inspection A building that does not contain enough business property for conducting business is considered vacant after: 60 days 30 days 45 days 90 days - 60 days What covers merchandise being shipped across oceans? Freight Coverage Cargo Coverage Ocean Marine Hull Coverage - Cargo Coverage A natural person employed to aid an insurance agent or insurance broker in transacting insurance other than life, disability, or health is an: Insurance broker Insurance agent Insurance solicitor Insurance salesperson - Insurance solicitor Risk Retention Groups are: auto insurers owned by their drivers inland marine insurers owned by the Department of Insurance liability insurers owned by their policyholders life insurers owned by stockholders - liability insurers owned by their policyholders In addition to ISO a commercial crime program falls under Jurisdiction of: National Association of Insurance Commissioners Internal Revenue Service Surety Association of America FBI - Surety Association of America The principle of restoring a victim of loss to the same financial position as before the loss occurred is called: indemnity estoppel consideration risk - indemnity Long-term care policies may not be cancelled or non-renewed on the grounds of age. True False - True Which of the following Perils would NOT be covered under difference in conditions? Mysterious Disappearance Flood Earthquake Fire - Fire What types of injuries are covered under the Employers Liability section of the Workers Compensation policy? Bodily injuries Physical damage to property Financial damage Any type of injury which results in a lawsuit - Bodily injuries The 3 main parts to the privacy requirements of the Gramm-Leach-Bliley Act are: 1. California Financial Rule, 2. Rule of 72, and 3. pretexting provisions 1. Safeguard Rule, 2. HIPAA Rule, and 3. pretexting provisions 1. Financial Privacy Rule, 2. Safeguard Rule, and 3. pretexting provisions 1. IPPA Rule, 2. HIPAA Rule, and 3. pretexting provisions - 1. Financial Privacy Rule, 2. Safeguard Rule, and 3. pretexting provisions When written on a blanket basis, employee dishonesty coverage applies: per position per policy period per employee per loss - per loss Supplement plans are meant to fill the gap in coverage that you find with medicare. What is true about these supplemental coverages D. Every company selling medicare supplement policies is required to have plan A C. They are not necessary for elders B. They require large premiums and deductibles A. They are federally observed - D. Every company selling medicare supplement policies is required to have plan A Every licensee and applicant for a license must immediately notify the commissioner in writing of any change in his residence address, business address, or mailing address. False True - True Insurance broker means a person who, for compensation and on behalf of another person, transacts insurance other than life with, but not on behalf of, an insurer. False True - True Which of the following must be provided when advertising insurance on the internet? Your license number Your name as it appears on your license Your name as it appears on his/her insurance license and any fictitious name approved by the commissioner, your state of domicile and principal place of business, and your license number. Your state of domicile - Your name as it appears on his/her insurance license and any fictitious name approved by the commissioner, your state of domicile and principal place of business, and your license number. All of the following are types of workers compensation benefits, EXCEPT Job search benefits Income benefits Medical expense benefits Death benefits - Job search benefits Mary�s husband Stan sues Mary�s employer for loss of consortium for work-related injuries that left her in a wheelchair. His lawsuit is an example of a Family Member Services Dual capacity claim Sole remedy judgment Workers compensation remedy - Family Member Services An umbrella policy covers: Excess liability and property damage to the insured Excess liability coverage beyond the underlying limits on a homeowners policy and auto policy Outside events (carnivals, fairs, etc.) Excess liability beyond the underlying limits on an auto policy only - Excess liability coverage beyond the underlying limits on a homeowners policy and auto policy The California Insurance Code (CIC) consists of: statutes written and passed by the state legislature and signed into law by the governor laws written by the governor laws written by the federal government statutues and laws written by the Insurance Commissioner - statutes written and passed by the state legislature and signed into law by the governor What is true about the "shrinking limits" provision found in most EPLI policies? Insurers are not allowed to reduce/shrink limits for any reason Insurers can reduce coverage by a set amount each year, regardless of actual claims submitted Insurer payment of defense costs will reduce the policy limits Insurer will cover a claim only if it is smaller than the claim previously submitted - Insurer payment of defense costs will reduce the policy limits Which of the following would NOT be considered an insured under the homeowner�s policy? The insureds spouse 18 year old daughter away at college 16 year old foster child residing on the premises 65 year old uncle residing off the premises - 65 year old uncle residing off the premises Insurance agents can be held legally liable for the consequences of any errors or omissions they have made while conducting their business. For this reason, insurance agents need to carry professional liability insurance which is called errors and omissions insurance. True False - True Farm liability coverage includes all of the following, except: Bodily injury and property damage Products and completed operations Personal and advertising injury Medical payments - Products and completed operations The insured has replacement cost coverage. The insured's roof is destroyed and it will cost $12,000 to replace it. However, the roof is 10 years old and has depreciated by $4,000. What will the homeowners coverage amount be? $12,000 $8,000 0 $4,000 - $12,000 Which type of pollution liability coverage can be written on either an occurrence or a claims-made basis? All of the choices can be written on either an occurrence or a claims-made basis Limited pollution liability coverage form Pollution liability extension coverage endorsement Pollution liability coverage form - Pollution liability extension coverage endorsement Which of the following is NOT one of the three extensions of coverage under the special form? newly acquired property outdoor property Collapse property off-premises - Collapse An applicant for an insurance license must submit which of the following items: 1 - Department of Insurance application form 2- fees 3 - certificates showing completion of necessary course material 2 and 3 Only 1 and 3 Only 1 Only 1, 2 and 3 - 1, 2 and 3 Which of the following statements regarding a surplus lines broker is NOT TRUE ? A Surplus lines broker may advertise a non-admitted insurer. A Surplus lines broker may act as an agent for a non-admitted insurer in the transaction of insurance business in California A Surplus lines broker places insurance with non-admitted insurers A Surplus lines broker can bind risk with non-admitted insurers. - A Surplus lines broker can bind risk with non-admitted insurers. Which of the following situations would be eligible for liability coverage under George's personal auto policy in case of an accident? George takes his coworkers to a meeting every Tuesday George borrows Pauls camera, and it is destroyed when it is thrown from the car during an accident George uses his car as a taxi on weekends for extra income John borrows Georges car without his permission - George takes his coworkers to a meeting every Tuesday To restore an insured to the prior financial condition that existed prior to the loss is considered: Hazard Insurable Interest Indemnify Adhesion - Indemnify All of the following were common law defenses under previous employer defenses except: Contributory negligence Assumption of risk Fellow servant rule Comparative negligence - Comparative negligence Under the BOP the Extra Expense Coverage is limited to what period of time following a Direct Loss: 18 months 12 months 6 months 24 months - 12 months Post claims underwriting means: An insurer may not insert a condition or stipulation in a policy that the insured person with such a trait, his/her heirs, or beneficiaries must accept less than the full value of the policy in event of a claim. An insurer may not pay a lower commission to an agent or broker for selling or renewing life or disability policies on persons possessing these traits. issuing a pro-rata refund based on the clients age and underwriting history. submitting a claim to underwriting that has been posted to an insureds account by a licensed agent. the rescinding, canceling, or limiting of a policy or certificate due to the insurers failure to complete medical underwriting and resolve all reasonable questions arising from written information submitted on or with an application before issuing the policy or certificate. - the rescinding, canceling, or limiting of a policy or certificate due to the insurers failure to complete medical underwriting and resolve all reasonable questions arising from written information submitted on or with an application before issuing the policy or certificate. In a Commercial Crime Policy, which term provides the broadest meaning: Robbery Extortion Burglary Theft - Theft A commercial property coverage part with a basic cause of loss form will cover which of the following perils? Explosion and earth movement Fire, lightning, and wind storm Smoke damage and falling objects Water and civil commotion - Fire, lightning, and wind storm All of the following are implied warranties under an Ocean Marine Policy EXCEPT: Cost of Insurance Coverage Cargo must be properly packed Vessel must be seaworthy There must be no deviation in normal route of voyage - Cost of Insurance Coverage What is defined as, the neglect to communicate that which a party knows and ought to communicate? Concealment Twisting Misrepresentation Materiality - Concealment Defense costs under the personal auto policy are paid: as a separate limit of insurance as part of the liability limits up to $200 a day in addition to the policy limits - in addition to the policy limits Which of the following is usually excluded under errors and omissions insurance? Omissions Errors Bodily injuries Negligence - Bodily injuries There are three types of Long term care sold in California; Nursing facility and residential care, home care only, comprehensive long-term care. False True - True Which of the following would NOT be eligible for coverage under a homeowner�s policy? Co-owner of a duplex A private residence An occupant of a dwelling under a life estate arrangement Property situated on premises used for farming - Property situated on premises used for farming The limit of insurance for the personal effects and property of others coverage extension at each of the described premises is: $2,500 $1,000 $5,000 $10,000 - $2,500 A miscellaneous type vehicle endorsement could be added to a personal auto policy to cover what types of vehicles? ATVs and electric cars Automobiles and motorcycles Dune buggies and golf carts Trailers and motorhomes - Dune buggies and golf carts A supplemental extended reporting period extends coverage: indefinitely for 30 days for 5 years for 12 months - indefinitely Under workers comp. a disabled workers weekly wage is limited to what percent? There is no limit 66 2/3% 66 2/3% with no minimum or maximum amounts 70% - 66 2/3% What is the purpose of the California Insurance Guarantee Association? To protect insurance companies against loss when an insured is financially impaired and cannot pay their contractual obligations To guarantee that all insurance companies in California will remain solvent. To protect the interests of the insurance companies and their investors against loss because an insolvent insurer is unable to pay it's contractual obligations. To protect the interests of policyholders and beneficiaries against loss because an insolvent insurer is unable to pay it's contractual obligations under property and casualty insurance policies - To protect the interests of policyholders and beneficiaries against loss because an insolvent insurer is unable to pay it's contractual obligations under property and casualty insurance policies What is a difference between surety bonds and insurance policies? Surety bonds will not protect against the risk of loss Surety bonds are 3 party contracts, insurance policies are 2 party contracts Surety bonds indemnify, insurance policies will not Insurance policies are financial guarantees - Surety bonds are 3 party contracts, insurance policies are 2 party contracts Which of the following would be covered property under a homeowners policy? Music CDs Personal paper records The insureds roommates television The family cat - Music CDs After an audit the estimated premium becomes the: Total payroll Manual rate Final premium Remuneration - Final premium Which of the following is NOT one of the five extensions of coverage available under the building and personal property coverage form? Property off premises Outdoor property Valuable papers and records Increased cost of construction - Increased cost of construction What is true about workers comp. medical benefits? There is no time limit but may have a dollar limit There is no dollar limit There is no time or dollar limit There is no time limit - There is no time or dollar limit Uninsured motorists coverage applies to: a hit and run driver a driver with insurance, but the limits of which are less than the states minimum requirements a driver with no insurance all of the choices - all of the choices In Ocean Marine if the captain and crew steal the ship and cargo without the ship-owners knowledge it is referred to as: Barratry Jettison Pirating Theft - Barratry An earthquake policy generally will have what type of deductible? $1,000 $250 No deductible 15% of the policy limit - 15% of the policy limit A licensee misrepresents the financial condition of an insurer. This is an example of: Concealment Avulsion Twisting Unfair trade practices - Unfair trade practices A boat owner policy covers which of the following? none of the choices an official race an unofficial race or speed contest an auto towing the boat - an unofficial race or speed contest Business Auto Policy has 9 symbols on the Declarations the symbol #4 refers to: Owned Autos other than private passenger autos Non-owned autos Hired autos only Owned autos only - Owned Autos other than private passenger autos The minimum liability requirements for commercial carriers are: $5,000,000 for transportation of hazardous substances defined in 49 CFR 171.8 and transported in cargo tanks, portable tanks, or hopper-type vehicles. $750,000 for non-hazardous property. $1,000,000 for transportation of hazardous substances defined in 49 CFR 171.8 All are correct answers - All are correct answers Who is the insured under a workers comp. policy? Surety