CA Property and Casualty Agent Exam
Tutor Questions And Correct Answers
(Verified Answers) Plus Rationales
2025/2026
AHdisgruntledHformerHemployeeHwhoHwasHrecentlyHlaidHoffHandHhasHbeenHunableHtoHobtainHotherH
employmentHsuesHherHformerHsupervisor,HMaryanne,HforHwrongfulHtermination.HWhatHtypeHofHins
uranceHmightHdefendHMaryanneHandHherHemployerHagainstHthisHclaimHandHpayHanyHdamagesHifHth
eHformerHemployeeHwinsHtheHlawsuit?H-HCORRECTHANSWER-
EmploymentHpracticesHliabilityHinsurance
Anderson'sHboardHhasHaskedHhimHtoHexplainHwhatHcoverageHtheHcompany'sHdirectorsHandHofficers
H(D&O)HliabilityHinsuranceHpolicyHprovides.HOnHexaminingHtheHpolicy,HheHdeterminesHthatHtheHpoli
cyHincludesHthreeHdistinctHcoverages.HWhichHofHtheHfollowingHisHnotHoneHofHthoseHthreeHcoverages
?H-HCORRECTHANSWER-EmployersHliabilityHcoverage.
WorkersHcompensationHpremiumsHareHbasedHonHwhichHofHtheHfollowingHexposures?H-
HCORRECTHANSWER-payrollHofHtheHemployees
InHwhichHofHtheHfollowingHsituationsHwouldHuninsuredHmotoristHcoverageHNOTHprotectHtheHowner
HofHanHinsuredHvehicleHfollowingHanHaccident?H-HCORRECTHANSWER-
TheHotherHdriverHleftHtheHsceneHofHaHhit-and-runHaccidentHbutHwasHlaterHidentified.
TheHownerHofHBoulevardHBakeryHtellsHaHcustomerHthatHaHcompetitor,HMel'sHDonutHandHBagelHShop
,HhasHaHfilthyHkitchenHandHdoesHnotHcomplyHwithHrequiredHsafetyHstandards.HTheHcustomerHtellsHM
elHaboutHtheseHcommentsHandHMelHsuesHBoulevardHBakery.HWhichHcoverageHunderHBoulevardHBa
kery'sHcommercialHgeneralHliabilityHpolicyHmightHcoverHtheHbakeryHforHthisHclaim?H-
HCORRECTHANSWER-personalHandHadvertisingHinjury
Cynthia'sHbusinessHisHcoveredHbyHaHcommercialHpackageHpolicyHthatHusesHISOHforms.HAHCaliforniaH
amendatoryHendorsementHattachedHtoHtheHpolicyHseemsHtoHcontradictHsomeHofHtheHprovisionsHel
sewhereHinHtheHpolicy.HHowHshouldHCynthiaHinterpretHtheseHcontradictions?H-HCORRECTHANSWER-
TheHendorsementHtakesHprecedenceHoverHtheHpolicyHitHisHattachedHto.
, StateHlawsHthatHrestrictHanHinjuredHparty'sHrightHtoHsueHanotherHdriverHunderHtortHlaw,HfollowingHa
HcarHaccident,HuntilHaHspecifiedHthresholdHofHdamagesHisHsurpassedHareHcalled:H-
HCORRECTHANSWER-compulsoryHno-fault
EstelleHpaidHtheHfullHannualHpremiumHwhenHsheHpurchasedHherHpolicy.HButHwhenHEstelleHcanceled
HherHone-
yearHinsuranceHpolicyHafterHitHhadHbeenHinHeffectHforHexactlyHthreeHmonths,HherHinsuranceHagentHt
oldHherHtheHreturnHpremiumHwouldHbeHcalculatedHonHaHshort-rateHbasis.HThisHmeansHthatH-
HCORRECTHANSWER-EstelleHwillHgetHbackHlessHthanHthree-fourthsHofHtheHannualHpremium.
ThievesHbrokeHintoHSmithHCo.HafterHitHhadHclosedHforHtheHdayHandHmadeHoffHwithHcashHandHsomeHc
omputerHequipment.HWhatHtermHcorrectlyHdescribesHthisHcrime?H-HCORRECTHANSWER-burglary
(BurglaryHisHtheHtheftHofHpropertyHfromHwithinHaHpremisesHbyHaHpersonHwhoHforciblyHentersHtheHpr
emisesHwithHtheHintentionHtoHsteal.)
Shauna'sHinsuranceHpremiumHisHlowerHthanHLouise's,HbecauseHShaunaHhasHhadHnoHticketsHorHaccid
entsHduringHtheHpastHthreeHyears.HLouiseHhasHaHmuchHworseHdrivingHrecord.HShauna'sHpremiumHisH
lowerHbecauseHherHinsurerHusesHwhatHratingHsystem?H-HCORRECTHANSWER-MeritHrating
(MeritHratingHbeginsHwithHmanualHratesHbutHthenHadjustsHthemHdownwardHforHindividualsHlikeHSh
aunaHwhoHhaveHhadHgoodHlossHexperienceHandHupwardHforHindividualsHlikeHLouise.)
MostHprofessionalHliabilityHpoliciesHcoverHclaimsHforHwhatHkindHofHinjuryHorHlossHsufferedHbyHthirdH
parties?H-HCORRECTHANSWER-EconomicHorHfinancialHlosses
JaneHisHaHsalesHrepresentativeHforHaHpharmaceuticalHcompanyHandHusesHaHcompanyHcarHforHbusine
ssHinsteadHofHherHfamilyHcar.HWhatHparticularHtypeHofHautoHcoverageHendorsementHshouldHJaneHco
nsider?H-HCORRECTHANSWER-extendedHnon-ownedHcoverageHendorsement
AHprotectionHandHindemnityH(P&I)HmarineHliabilityHinsuranceHpolicyHexcludesHcoverageHofHallHofHth
eHfollowingHEXCEPT:H-HCORRECTHANSWER-lossHresultingHfromHtowingHaHvesselHinHdistress
Bernice'sHBakeryHhasHaHbusinessHautoHpolicyH(BAP).HTheHpolicyHshowsHaHsymbolH1HdesignationHonH
theHdeclarationsHpageHnextHtoHliabilityHcoverage.HWhatHvehiclesHareHcoveredHforHliabilityHinsuranc
eHonHBernice'sHBakery'sHBAP?H-HCORRECTHANSWER-anyHauto
AllHofHtheHfollowingHstatementsHaboutHaHno-faultHautoHinsuranceHsystemHareHtrueHEXCEPT:H-
HCORRECTHANSWER-No-faultHbenefitsHcompensateHinjuredHpartiesHforHpainHandHsuffering.
BecauseHmoldHhasHbecomeHaHproblemHforHinsurers,HmanyHpoliciesHnowHprovideHlimitedHcoverageH
byH-HCORRECTHANSWER-
ExcludingHmoldHandHthenHaddingHanHadditionalHcoverageHwithHaHdollarHlimit.
Tutor Questions And Correct Answers
(Verified Answers) Plus Rationales
2025/2026
AHdisgruntledHformerHemployeeHwhoHwasHrecentlyHlaidHoffHandHhasHbeenHunableHtoHobtainHotherH
employmentHsuesHherHformerHsupervisor,HMaryanne,HforHwrongfulHtermination.HWhatHtypeHofHins
uranceHmightHdefendHMaryanneHandHherHemployerHagainstHthisHclaimHandHpayHanyHdamagesHifHth
eHformerHemployeeHwinsHtheHlawsuit?H-HCORRECTHANSWER-
EmploymentHpracticesHliabilityHinsurance
Anderson'sHboardHhasHaskedHhimHtoHexplainHwhatHcoverageHtheHcompany'sHdirectorsHandHofficers
H(D&O)HliabilityHinsuranceHpolicyHprovides.HOnHexaminingHtheHpolicy,HheHdeterminesHthatHtheHpoli
cyHincludesHthreeHdistinctHcoverages.HWhichHofHtheHfollowingHisHnotHoneHofHthoseHthreeHcoverages
?H-HCORRECTHANSWER-EmployersHliabilityHcoverage.
WorkersHcompensationHpremiumsHareHbasedHonHwhichHofHtheHfollowingHexposures?H-
HCORRECTHANSWER-payrollHofHtheHemployees
InHwhichHofHtheHfollowingHsituationsHwouldHuninsuredHmotoristHcoverageHNOTHprotectHtheHowner
HofHanHinsuredHvehicleHfollowingHanHaccident?H-HCORRECTHANSWER-
TheHotherHdriverHleftHtheHsceneHofHaHhit-and-runHaccidentHbutHwasHlaterHidentified.
TheHownerHofHBoulevardHBakeryHtellsHaHcustomerHthatHaHcompetitor,HMel'sHDonutHandHBagelHShop
,HhasHaHfilthyHkitchenHandHdoesHnotHcomplyHwithHrequiredHsafetyHstandards.HTheHcustomerHtellsHM
elHaboutHtheseHcommentsHandHMelHsuesHBoulevardHBakery.HWhichHcoverageHunderHBoulevardHBa
kery'sHcommercialHgeneralHliabilityHpolicyHmightHcoverHtheHbakeryHforHthisHclaim?H-
HCORRECTHANSWER-personalHandHadvertisingHinjury
Cynthia'sHbusinessHisHcoveredHbyHaHcommercialHpackageHpolicyHthatHusesHISOHforms.HAHCaliforniaH
amendatoryHendorsementHattachedHtoHtheHpolicyHseemsHtoHcontradictHsomeHofHtheHprovisionsHel
sewhereHinHtheHpolicy.HHowHshouldHCynthiaHinterpretHtheseHcontradictions?H-HCORRECTHANSWER-
TheHendorsementHtakesHprecedenceHoverHtheHpolicyHitHisHattachedHto.
, StateHlawsHthatHrestrictHanHinjuredHparty'sHrightHtoHsueHanotherHdriverHunderHtortHlaw,HfollowingHa
HcarHaccident,HuntilHaHspecifiedHthresholdHofHdamagesHisHsurpassedHareHcalled:H-
HCORRECTHANSWER-compulsoryHno-fault
EstelleHpaidHtheHfullHannualHpremiumHwhenHsheHpurchasedHherHpolicy.HButHwhenHEstelleHcanceled
HherHone-
yearHinsuranceHpolicyHafterHitHhadHbeenHinHeffectHforHexactlyHthreeHmonths,HherHinsuranceHagentHt
oldHherHtheHreturnHpremiumHwouldHbeHcalculatedHonHaHshort-rateHbasis.HThisHmeansHthatH-
HCORRECTHANSWER-EstelleHwillHgetHbackHlessHthanHthree-fourthsHofHtheHannualHpremium.
ThievesHbrokeHintoHSmithHCo.HafterHitHhadHclosedHforHtheHdayHandHmadeHoffHwithHcashHandHsomeHc
omputerHequipment.HWhatHtermHcorrectlyHdescribesHthisHcrime?H-HCORRECTHANSWER-burglary
(BurglaryHisHtheHtheftHofHpropertyHfromHwithinHaHpremisesHbyHaHpersonHwhoHforciblyHentersHtheHpr
emisesHwithHtheHintentionHtoHsteal.)
Shauna'sHinsuranceHpremiumHisHlowerHthanHLouise's,HbecauseHShaunaHhasHhadHnoHticketsHorHaccid
entsHduringHtheHpastHthreeHyears.HLouiseHhasHaHmuchHworseHdrivingHrecord.HShauna'sHpremiumHisH
lowerHbecauseHherHinsurerHusesHwhatHratingHsystem?H-HCORRECTHANSWER-MeritHrating
(MeritHratingHbeginsHwithHmanualHratesHbutHthenHadjustsHthemHdownwardHforHindividualsHlikeHSh
aunaHwhoHhaveHhadHgoodHlossHexperienceHandHupwardHforHindividualsHlikeHLouise.)
MostHprofessionalHliabilityHpoliciesHcoverHclaimsHforHwhatHkindHofHinjuryHorHlossHsufferedHbyHthirdH
parties?H-HCORRECTHANSWER-EconomicHorHfinancialHlosses
JaneHisHaHsalesHrepresentativeHforHaHpharmaceuticalHcompanyHandHusesHaHcompanyHcarHforHbusine
ssHinsteadHofHherHfamilyHcar.HWhatHparticularHtypeHofHautoHcoverageHendorsementHshouldHJaneHco
nsider?H-HCORRECTHANSWER-extendedHnon-ownedHcoverageHendorsement
AHprotectionHandHindemnityH(P&I)HmarineHliabilityHinsuranceHpolicyHexcludesHcoverageHofHallHofHth
eHfollowingHEXCEPT:H-HCORRECTHANSWER-lossHresultingHfromHtowingHaHvesselHinHdistress
Bernice'sHBakeryHhasHaHbusinessHautoHpolicyH(BAP).HTheHpolicyHshowsHaHsymbolH1HdesignationHonH
theHdeclarationsHpageHnextHtoHliabilityHcoverage.HWhatHvehiclesHareHcoveredHforHliabilityHinsuranc
eHonHBernice'sHBakery'sHBAP?H-HCORRECTHANSWER-anyHauto
AllHofHtheHfollowingHstatementsHaboutHaHno-faultHautoHinsuranceHsystemHareHtrueHEXCEPT:H-
HCORRECTHANSWER-No-faultHbenefitsHcompensateHinjuredHpartiesHforHpainHandHsuffering.
BecauseHmoldHhasHbecomeHaHproblemHforHinsurers,HmanyHpoliciesHnowHprovideHlimitedHcoverageH
byH-HCORRECTHANSWER-
ExcludingHmoldHandHthenHaddingHanHadditionalHcoverageHwithHaHdollarHlimit.