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CA Property and Casualty Agent Exam Tutor Questions And Correct Answers (Verified Answers) Plus Rationales 2025/2026.

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CA Property and Casualty Agent Exam Tutor Questions And Correct Answers (Verified Answers) Plus Rationales 2025/2026.

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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.

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