Auto insurance Practice test Exam Question
& Answers 2025
What type of coverage is provided by an inland marine policy? - Correct
Answers ✅Open or all risk coverage - Inland marine policies have only
a few limited exclusions.
Any person who transacts insurance without a valid license is: - Correct
Answers ✅Guilty of a misdemeanor, Subject to a fine not exceeding
$50,000 and/or improsonment, Subject to imprisonment in county jail
for a period not exceeding one year.
For homes subject to the state & defensible space req, the total
amount of defensible space req around the home is - Correct Answers
✅100 ft
Notifying the police is a req under which of the following
circumstances, as it applies to a personal auto policy? - Correct
Answers ✅For hit and run accidents and thefts.
Under a yacht policy, protection and indemnity provides coverage for: -
Correct Answers ✅Liability if the insured vessel strikes a marina and
injures a dock worker.
Which of the following is a principal rating factor for a personal
automonile policy? - Correct Answers ✅The number of miles the
drives each year. This is the second principal rating factor that must be
used according to the Code.
,Auto insurance Practice test Exam Question
& Answers 2025
The cost to rebuild or replace a home increases for all of the following
reasons after a catastrophe such as tornadoes or wildfire, except: -
Correct Answers ✅Insurance policy issues - Insurance does not
increase the cost to rebuild after a catastrophe; it just might not be
enough to cover all of the increased costs.
Withholding, rather than misstating, a material fact on an insurance
application is an act of which of the following? - Correct Answers
✅Concealment
How you would compute the combined ratio is to: - Correct Answers
✅Add the loss and expense ratios
Absolute liability is imposed on a risk: - Correct Answers ✅When
there is negligence whether proven or not
The measure of loss potential which is used for pricing of insurance is
known as: - Correct Answers ✅An exposure unit
Which part of the policy is said to personalize it? - Correct Answers
✅Declarations
,Auto insurance Practice test Exam Question
& Answers 2025
According to California Insurance Law, who is legally allowed to cancel
an insurance policy? - Correct Answers ✅Either the insured or insurer
When a premium is based solely on an underwriter evaluation of an
individual applicants loss potential this is known as: - Correct Answers
✅judgement rating.
What is is about a liability policy that causes the need for inland marine
coverage? - Correct Answers ✅The exclusion for care, custody, and
control
Which of the following coverages must be offered to all insureds that
purchase residential property insurance policies in CA? - Correct
Answers ✅Earthquake coverage
The Ca FAIR plan makes it possible for people that are unable to obtain
insurance in the voluntary market to qualify for coverage through this
program. Which type of insurance is obtained through the Fair Plan? -
Correct Answers ✅Real and personal property at a fixed location in
areas designated
In order for a rate to remain in effect it must be: - Correct Answers
✅Reasonable, not excessive: Adequate, not inadeqaute: Equitable, not
unfairly discriminatory
, Auto insurance Practice test Exam Question
& Answers 2025
Which of the following events may be covered by insurance? - Correct
Answers ✅Owning a home - This is a pure risk and only pure risk can
be insured
A type of auto insurance that car owners can buy to protect themselves
againts lossess that can arise when the amont of compensation
received from a total loss does not fully cover the amount the insured
owes on the vehicle financing or lease agreement would be: - Correct
Answers ✅Gap insurance
An all risk or open peril policy: - Correct Answers ✅Protects against
any peril except those specifically excluded
An insured duties after a loss are described in the homeowners Section
1 conditions, The incorrect statement concerning the insured duties
would be? the insured must - Correct Answers ✅Submit to questions
under oath while not in the presenc of any other insured. (This question
has two possible inCorrect Answers so you have to determine which is
most incorrect. The insured must protect property always, but must
submit to examination under oath only if the insurer requests it.)
The physical dmg insuring agreement of a personla auto policy would
cover which of the following? - Correct Answers ✅Loss of a CD player
installed in the vehicle dashboard.
& Answers 2025
What type of coverage is provided by an inland marine policy? - Correct
Answers ✅Open or all risk coverage - Inland marine policies have only
a few limited exclusions.
Any person who transacts insurance without a valid license is: - Correct
Answers ✅Guilty of a misdemeanor, Subject to a fine not exceeding
$50,000 and/or improsonment, Subject to imprisonment in county jail
for a period not exceeding one year.
For homes subject to the state & defensible space req, the total
amount of defensible space req around the home is - Correct Answers
✅100 ft
Notifying the police is a req under which of the following
circumstances, as it applies to a personal auto policy? - Correct
Answers ✅For hit and run accidents and thefts.
Under a yacht policy, protection and indemnity provides coverage for: -
Correct Answers ✅Liability if the insured vessel strikes a marina and
injures a dock worker.
Which of the following is a principal rating factor for a personal
automonile policy? - Correct Answers ✅The number of miles the
drives each year. This is the second principal rating factor that must be
used according to the Code.
,Auto insurance Practice test Exam Question
& Answers 2025
The cost to rebuild or replace a home increases for all of the following
reasons after a catastrophe such as tornadoes or wildfire, except: -
Correct Answers ✅Insurance policy issues - Insurance does not
increase the cost to rebuild after a catastrophe; it just might not be
enough to cover all of the increased costs.
Withholding, rather than misstating, a material fact on an insurance
application is an act of which of the following? - Correct Answers
✅Concealment
How you would compute the combined ratio is to: - Correct Answers
✅Add the loss and expense ratios
Absolute liability is imposed on a risk: - Correct Answers ✅When
there is negligence whether proven or not
The measure of loss potential which is used for pricing of insurance is
known as: - Correct Answers ✅An exposure unit
Which part of the policy is said to personalize it? - Correct Answers
✅Declarations
,Auto insurance Practice test Exam Question
& Answers 2025
According to California Insurance Law, who is legally allowed to cancel
an insurance policy? - Correct Answers ✅Either the insured or insurer
When a premium is based solely on an underwriter evaluation of an
individual applicants loss potential this is known as: - Correct Answers
✅judgement rating.
What is is about a liability policy that causes the need for inland marine
coverage? - Correct Answers ✅The exclusion for care, custody, and
control
Which of the following coverages must be offered to all insureds that
purchase residential property insurance policies in CA? - Correct
Answers ✅Earthquake coverage
The Ca FAIR plan makes it possible for people that are unable to obtain
insurance in the voluntary market to qualify for coverage through this
program. Which type of insurance is obtained through the Fair Plan? -
Correct Answers ✅Real and personal property at a fixed location in
areas designated
In order for a rate to remain in effect it must be: - Correct Answers
✅Reasonable, not excessive: Adequate, not inadeqaute: Equitable, not
unfairly discriminatory
, Auto insurance Practice test Exam Question
& Answers 2025
Which of the following events may be covered by insurance? - Correct
Answers ✅Owning a home - This is a pure risk and only pure risk can
be insured
A type of auto insurance that car owners can buy to protect themselves
againts lossess that can arise when the amont of compensation
received from a total loss does not fully cover the amount the insured
owes on the vehicle financing or lease agreement would be: - Correct
Answers ✅Gap insurance
An all risk or open peril policy: - Correct Answers ✅Protects against
any peril except those specifically excluded
An insured duties after a loss are described in the homeowners Section
1 conditions, The incorrect statement concerning the insured duties
would be? the insured must - Correct Answers ✅Submit to questions
under oath while not in the presenc of any other insured. (This question
has two possible inCorrect Answers so you have to determine which is
most incorrect. The insured must protect property always, but must
submit to examination under oath only if the insurer requests it.)
The physical dmg insuring agreement of a personla auto policy would
cover which of the following? - Correct Answers ✅Loss of a CD player
installed in the vehicle dashboard.
