California Property and Casualty Insurance Test
California Property and Casualty
Insurance Test Questions (77 terms)
with Detailed Answers & Rationales
2023-2024
The term "Time element Coverage" is used when the amount of loss depends on
what?
The time it takes to repair, rebuild, or restore damaged property. - Answer: The
term time element coverage is used for many indirect losses, such as a business
income loss, because the amount of loss might not be directly related to the
, California Property and Casualty Insurance Test
amount of property damage that occurred, but it is related to the time it takes to
repair, rebuild, or restore the damaged property. Many factors can influence the
ultimate loss, including the availability of supplies and replacement parts.
Which is NOT one of the common law defenses against an employer's liability?
Proximate cause - Answer: Assumption of risk, contributory negligence, and the
fellow servant rule are the traditional common law defenses against employer
liability.
Are Vehicles eligible for a Personal Auto Policy PAP if used in a delivery business?
No. Vans used in a delivery business are not eligible for coverage. - Answer:
Generally, four-wheel private passenger autos, pickups, and vans owned by an
individual or married couple are eligible if used for pleasure or general
transportation. Pickups and vans used in a business, other than farming or
ranching, are not eligible.
Business owners policies provide an additional coverage for preservation of
property when it is removed from the premises to protect it from loss by a
covered peril. The coverage will apply at other locations for up to?
30 Days - Answer: The preservation of property additional coverage under a
BUSINESS OWNERS POLICY covers direct physical loss or damage from an cause if
the property has been removed to another location in order to protect it from loss
, California Property and Casualty Insurance Test
by a covered peril. Coverage applies while the property is being moved and while
it is temporarily stored at another location, but only for 30 days after the property
is first moved.
Which losses are excluded under the physical damage coverage of a personal auto
policy?
Loss of custom furnishings in a customized van
loss caused by freezing of the cooling system
Damage to equipment designed for the detection of Radar. - Answer: Damage to a
covered auto while being used as apart of a car pool is not excluded.
Under the BUSINESS AUTO COVERAGE PART, liability insurance applies to mobile
equipment while it is:
Being carried or towed by a covered auto. - Answer: Although mobile equipment
exposures are usually covered by CGL insurance, it is covered by business auto
insurance while being carried or towed by a covered auto because in such cases it
is considered an extension of the covered auto.
Insurance is a mechanism used to manage which type of risk?
Pure risks. - Answer: Insurance is only used to manage pure risks that involve only
the possibility of loss and no opportunity for gain.
California Property and Casualty
Insurance Test Questions (77 terms)
with Detailed Answers & Rationales
2023-2024
The term "Time element Coverage" is used when the amount of loss depends on
what?
The time it takes to repair, rebuild, or restore damaged property. - Answer: The
term time element coverage is used for many indirect losses, such as a business
income loss, because the amount of loss might not be directly related to the
, California Property and Casualty Insurance Test
amount of property damage that occurred, but it is related to the time it takes to
repair, rebuild, or restore the damaged property. Many factors can influence the
ultimate loss, including the availability of supplies and replacement parts.
Which is NOT one of the common law defenses against an employer's liability?
Proximate cause - Answer: Assumption of risk, contributory negligence, and the
fellow servant rule are the traditional common law defenses against employer
liability.
Are Vehicles eligible for a Personal Auto Policy PAP if used in a delivery business?
No. Vans used in a delivery business are not eligible for coverage. - Answer:
Generally, four-wheel private passenger autos, pickups, and vans owned by an
individual or married couple are eligible if used for pleasure or general
transportation. Pickups and vans used in a business, other than farming or
ranching, are not eligible.
Business owners policies provide an additional coverage for preservation of
property when it is removed from the premises to protect it from loss by a
covered peril. The coverage will apply at other locations for up to?
30 Days - Answer: The preservation of property additional coverage under a
BUSINESS OWNERS POLICY covers direct physical loss or damage from an cause if
the property has been removed to another location in order to protect it from loss
, California Property and Casualty Insurance Test
by a covered peril. Coverage applies while the property is being moved and while
it is temporarily stored at another location, but only for 30 days after the property
is first moved.
Which losses are excluded under the physical damage coverage of a personal auto
policy?
Loss of custom furnishings in a customized van
loss caused by freezing of the cooling system
Damage to equipment designed for the detection of Radar. - Answer: Damage to a
covered auto while being used as apart of a car pool is not excluded.
Under the BUSINESS AUTO COVERAGE PART, liability insurance applies to mobile
equipment while it is:
Being carried or towed by a covered auto. - Answer: Although mobile equipment
exposures are usually covered by CGL insurance, it is covered by business auto
insurance while being carried or towed by a covered auto because in such cases it
is considered an extension of the covered auto.
Insurance is a mechanism used to manage which type of risk?
Pure risks. - Answer: Insurance is only used to manage pure risks that involve only
the possibility of loss and no opportunity for gain.
