Personal Lines Study Guide 2025/2026 QUESTIONS AND
ANSWERS GUARANTEE A+
Grace period - Offers 45 days for premium payment during a declared state of emergency.
Minimum limit - The required amount for several people injured in one accident under the
Financial Responsibility Law in California.
All risk coverage - A policy that contains no excluded perils.
Principal rating factor - Determines the premium for a personal auto policy based on the type of
vehicle insured.
Insurer payment for damage - Pays $1050 for damage to the insured car in a personal auto policy.
Special limit for theft - Applies to jewelry as subject to a special limit in property insurance.
Federal government insurance programs - Exist due to the amount of resources needed for
catastrophic losses.
Excess and surplus lines coverage - Needs to be placed through a surplus lines broker in
California.
Insured under a personal auto policy - Includes the named insured, resident relatives, and
passengers while using a covered auto.
Comprehensive coverage - Also known as 'other than collision' in a personal auto policy.
Insurance contract - Includes declaration, insurance agreements, conditions, exclusions.
, Automobile liability insurance - Covers damage caused by running a red light and damaging
another car.
Failure to report background changes - Can subject a licensee or applicant to penalties as per the
California Insurance Code.
Waiting or affiliation - The period of time specified in a pet insurance policy before coverage can
begin.
Extension of additional living expense coverage - Allowed for a loss related to a declaration of
emergency for up to 24 months.
Special cause of loss - Considered to be all risk coverage.
California Fair Plan - Insures California residents who cannot obtain insurance through the
normal market.
Unlawful claims practices - Include misleading claimants with respect to policy provisions.
Speculative risk - Refers to gambling.
Concurrent causation - The legal doctrine that makes the insurer liable for damage caused by a
covered cause and an excluded cause.
National Association of Insurance Commissioners - Provides a range of services relating to
property and casualty insurance.
Independent rating organizations - Include Fitch, but not all others.
ANSWERS GUARANTEE A+
Grace period - Offers 45 days for premium payment during a declared state of emergency.
Minimum limit - The required amount for several people injured in one accident under the
Financial Responsibility Law in California.
All risk coverage - A policy that contains no excluded perils.
Principal rating factor - Determines the premium for a personal auto policy based on the type of
vehicle insured.
Insurer payment for damage - Pays $1050 for damage to the insured car in a personal auto policy.
Special limit for theft - Applies to jewelry as subject to a special limit in property insurance.
Federal government insurance programs - Exist due to the amount of resources needed for
catastrophic losses.
Excess and surplus lines coverage - Needs to be placed through a surplus lines broker in
California.
Insured under a personal auto policy - Includes the named insured, resident relatives, and
passengers while using a covered auto.
Comprehensive coverage - Also known as 'other than collision' in a personal auto policy.
Insurance contract - Includes declaration, insurance agreements, conditions, exclusions.
, Automobile liability insurance - Covers damage caused by running a red light and damaging
another car.
Failure to report background changes - Can subject a licensee or applicant to penalties as per the
California Insurance Code.
Waiting or affiliation - The period of time specified in a pet insurance policy before coverage can
begin.
Extension of additional living expense coverage - Allowed for a loss related to a declaration of
emergency for up to 24 months.
Special cause of loss - Considered to be all risk coverage.
California Fair Plan - Insures California residents who cannot obtain insurance through the
normal market.
Unlawful claims practices - Include misleading claimants with respect to policy provisions.
Speculative risk - Refers to gambling.
Concurrent causation - The legal doctrine that makes the insurer liable for damage caused by a
covered cause and an excluded cause.
National Association of Insurance Commissioners - Provides a range of services relating to
property and casualty insurance.
Independent rating organizations - Include Fitch, but not all others.
