CALIFORNIA PROPERTY AND CASUALTY
EXAM QUESTIONS WITH COMPLETE
ANSWERS
Adequate coverage for large, powerful boats is provided by which of the following?
A A homeowners policy
B. A homeowners policy with the Watercraft endorsement attached
C. Specialized personal watercraft policies, such as Outboard Motor and Boat, Boatowners,
or Personal Yacht policies
D. The reinsurance component of FAIR Plans - ANSWER-C. Specialized personal watercraft
policies, such as Outboard Motor and Boat
A typical Outboard Motor and Boat policy provides which of the following coverages?
A. Liability
B. Medical Payments
C .Physical Damage
D. All of the above - ANSWER-C .Physical Damage
Under a National Flood Insurance policy, losses to which of the following could be paid on a
replacement cost basis?
A. Personal property
B. Single family homes
C. Mobile homes
D. Both A and B - ANSWER-B. Single family homes
Unless an exception applies, when does coverage under an NFIP policy begin?
A. As soon as the gross policy premium is received
B. Five days after the application and C. premium payment are mailed
C. Thirty days after the date of application
D. On the date the flood insurance application is mailed - ANSWER-C. Thirty days after the
date of application
Which of the following losses are excluded under most Yacht policies?
A. Injury suffered by a passenger in a waterskiing accident
B. Collision damage to another boat for which the insured is liable
C. Both A and B
D. Neither A nor B - ANSWER-A. Injury suffered by a passenger in a waterskiing accident
Which of the following are contained in the Common Policy Declarations?
A. The policy period
B. The name and mailing address of the insured
C. Conditions specifying the insured's duties following a loss
D. The insured's premium for each coverage part purchased - ANSWER-A. The policy period
B. The name and mailing address of the insured
D. The insured's premium for each coverage part purchased
Who may cancel a CPP?
, A. Any named insured.
B. The insurance company.
C. The first named insured.
D. None of the above; once a policy is issued, it can never be cancelled. - ANSWER-B. The
insurance company.
C. The first named insured.
Under a CPP, how many days advance notice is required if the insurance company is
cancelling the contract for nonpayment of premium?
A. 10 days
B. 21 days
C. 30 days
D. 60 days - ANSWER-A. 10 days
Under a CPP, how long after the end of the policy period can the insurance company
examine the insured's books and records?
A. 10 days
B. 3 months
C. 1 year
D. 3 years - ANSWER-D. 3 years
Under a CPP, when does the Inspections and Surveys condition give the insurance company
the right to inspect the insured's premises?
A. At any time
B. Quarterly
C. Every six months
D. Once a year - ANSWER-A. At any time
What is required for an insured's rights and duties under a CPP to be transferred while the
insured is alive?
A. The written consent of the insured
B. The written consent of the insurance company
C. verbal consent of the insured
D. The written consent of the insured's legal representative - ANSWER-B. The written
consent of the insurance company
What is the largest office building risk that might be eligible for a BOP?
A. Three stories and 50,000 square feet
B. Three stories and 75,000 square feet
.C Six stories and 75,000 square feet
D. Six stories and 100,000 square feet - ANSWER-D. Six stories and 100,000 square feet
All but which of the following require coverage under a hired auto insurance policy?
A. A vehicle that is leased for personal use
B. A minivan rented from a car rental business that is used to drive a child to college
C. A vehicle that is borrowed from an employee
D. Car borrowed by insured from leasing center - ANSWER-C. A vehicle that is borrowed
from an employee
EXAM QUESTIONS WITH COMPLETE
ANSWERS
Adequate coverage for large, powerful boats is provided by which of the following?
A A homeowners policy
B. A homeowners policy with the Watercraft endorsement attached
C. Specialized personal watercraft policies, such as Outboard Motor and Boat, Boatowners,
or Personal Yacht policies
D. The reinsurance component of FAIR Plans - ANSWER-C. Specialized personal watercraft
policies, such as Outboard Motor and Boat
A typical Outboard Motor and Boat policy provides which of the following coverages?
A. Liability
B. Medical Payments
C .Physical Damage
D. All of the above - ANSWER-C .Physical Damage
Under a National Flood Insurance policy, losses to which of the following could be paid on a
replacement cost basis?
A. Personal property
B. Single family homes
C. Mobile homes
D. Both A and B - ANSWER-B. Single family homes
Unless an exception applies, when does coverage under an NFIP policy begin?
A. As soon as the gross policy premium is received
B. Five days after the application and C. premium payment are mailed
C. Thirty days after the date of application
D. On the date the flood insurance application is mailed - ANSWER-C. Thirty days after the
date of application
Which of the following losses are excluded under most Yacht policies?
A. Injury suffered by a passenger in a waterskiing accident
B. Collision damage to another boat for which the insured is liable
C. Both A and B
D. Neither A nor B - ANSWER-A. Injury suffered by a passenger in a waterskiing accident
Which of the following are contained in the Common Policy Declarations?
A. The policy period
B. The name and mailing address of the insured
C. Conditions specifying the insured's duties following a loss
D. The insured's premium for each coverage part purchased - ANSWER-A. The policy period
B. The name and mailing address of the insured
D. The insured's premium for each coverage part purchased
Who may cancel a CPP?
, A. Any named insured.
B. The insurance company.
C. The first named insured.
D. None of the above; once a policy is issued, it can never be cancelled. - ANSWER-B. The
insurance company.
C. The first named insured.
Under a CPP, how many days advance notice is required if the insurance company is
cancelling the contract for nonpayment of premium?
A. 10 days
B. 21 days
C. 30 days
D. 60 days - ANSWER-A. 10 days
Under a CPP, how long after the end of the policy period can the insurance company
examine the insured's books and records?
A. 10 days
B. 3 months
C. 1 year
D. 3 years - ANSWER-D. 3 years
Under a CPP, when does the Inspections and Surveys condition give the insurance company
the right to inspect the insured's premises?
A. At any time
B. Quarterly
C. Every six months
D. Once a year - ANSWER-A. At any time
What is required for an insured's rights and duties under a CPP to be transferred while the
insured is alive?
A. The written consent of the insured
B. The written consent of the insurance company
C. verbal consent of the insured
D. The written consent of the insured's legal representative - ANSWER-B. The written
consent of the insurance company
What is the largest office building risk that might be eligible for a BOP?
A. Three stories and 50,000 square feet
B. Three stories and 75,000 square feet
.C Six stories and 75,000 square feet
D. Six stories and 100,000 square feet - ANSWER-D. Six stories and 100,000 square feet
All but which of the following require coverage under a hired auto insurance policy?
A. A vehicle that is leased for personal use
B. A minivan rented from a car rental business that is used to drive a child to college
C. A vehicle that is borrowed from an employee
D. Car borrowed by insured from leasing center - ANSWER-C. A vehicle that is borrowed
from an employee
