California Insurance Exam Test
Questions And Correct Answers (Verified
Answers)2025/2026
UnderHaHCGLHpolicy,HtheHwordH�occurrence�HrefersHto:H-HCORRECTHANSWER-
AnHaccident,HincludingHaHcontinuousHorHrepeatedHexposureHtoHtheHsameHharmfulHconditions
TheHauthorityHofHanHagentHthatHisHcreatedHwhenHtheHagentHoverstepsHactualHauthorityHisHcalled:H-
HCORRECTHANSWER-apparentHauthority
WhatHisHtrueHaboutHinsuranceHrecordsHkeptHbyHanHagentHorHbroker?H-HCORRECTHANSWER-
TheHcommissionerHmayHinspectHanyHrecordHatHanyHtime.
TheHprincipleHofHrestoringHaHvictimHofHlossHtoHtheHsameHfinancialHpositionHasHbeforeHtheHlossHoccur
redHisHcalled:H-HCORRECTHANSWER-indemnity
WhatHisHtheHpurposeHofHtheHCaliforniaHInsuranceHGuaranteeHAssociation?H-HCORRECTHANSWER-
ToHprotectHtheHinterestsHofHpolicyholdersHandHbeneficiariesHagainstHlossHbecauseHanHinsolventHins
urerHisHunableHtoHpayHitsHcontractualHobligationsHunderHpropertyHandHcasualtyHinsuranceHpolicies
TheHbenefitHamountHpaidHtoHtheHinsuredHforHdismembermentHisHcalled?H-HCORRECTHANSWER-
CapitalHsum
WhichHofHtheHfollowingHisHeligibleHforHcoverageHunderHaHBOP:H-HCORRECTHANSWER-
OfficeHbuildingHofH3HstoriesHandH20,000HsquareHfeet
, WhichHofHtheHfollowingHisHNOTHoneHofHtheHfiveHextensionsHofHcoverageHavailableHunderHtheHbuildi
ngHandHpersonalHpropertyHcoverageHform?H-HCORRECTHANSWER-IncreasedHcostHofHconstruction
WhichHcommercialHpropertyHcoverageHformHisHdesignedHtoHcoverHbuildingsHunderHconstruction:H-
HCORRECTHANSWER-BuildersHRisk
WhichHofHtheHfollowingHisHNOTHaH"timeHelement"Hcoverage?H-HCORRECTHANSWER-PairsHandHsets
HowHmuchHcoverageHisHprovidedHforHfirearmsHinHanHunendorsedHhomeowner�sHpolicy?H-
HCORRECTHANSWER-$2500
AHnewlyHacquiredHautoHisHtoHreplaceHaHcoveredHautoHthatHhasHliabilityHcoverageHonly.HHowHlongHwi
llHtheHinsuredHhaveHtoHrequestHcollisionHcoverageHonHtheHnewHauto:H-HCORRECTHANSWER-4Hdays
TheH"periodHofHrestoration"HunderHbusinessHinterruptionHcoverageHends:H-HCORRECTHANSWER-
onHtheHdateHdamagedHpropertyH`should`HbeHrebuiltHorHrepaired
WhenHwrittenHonHaHblanketHbasis,HemployeeHdishonestyHcoverageHapplies:H-HCORRECTHANSWER-
perHloss
IfHanHinsuredHhasHaHbusinessHwithHwidelyHfluctuatingHinventoryHlevels,HtheHinsuredHwouldHmostHlik
elyHneed:H-HCORRECTHANSWER-ValueHreportingHform
WhichHofHtheHfollowingHwouldHNOTHbeHeligibleHforHcoverageHunderHaHdwellingHpolicy:H-
HCORRECTHANSWER-BuildingHwithHupHtoH6Hunits
InHOceanHMarineHifHtheHcaptainHandHcrewHstealHtheHshipHandHcargoHwithoutHtheHship-
ownersHknowledgeHitHisHreferredHtoHas:H-HCORRECTHANSWER-Barratry
Questions And Correct Answers (Verified
Answers)2025/2026
UnderHaHCGLHpolicy,HtheHwordH�occurrence�HrefersHto:H-HCORRECTHANSWER-
AnHaccident,HincludingHaHcontinuousHorHrepeatedHexposureHtoHtheHsameHharmfulHconditions
TheHauthorityHofHanHagentHthatHisHcreatedHwhenHtheHagentHoverstepsHactualHauthorityHisHcalled:H-
HCORRECTHANSWER-apparentHauthority
WhatHisHtrueHaboutHinsuranceHrecordsHkeptHbyHanHagentHorHbroker?H-HCORRECTHANSWER-
TheHcommissionerHmayHinspectHanyHrecordHatHanyHtime.
TheHprincipleHofHrestoringHaHvictimHofHlossHtoHtheHsameHfinancialHpositionHasHbeforeHtheHlossHoccur
redHisHcalled:H-HCORRECTHANSWER-indemnity
WhatHisHtheHpurposeHofHtheHCaliforniaHInsuranceHGuaranteeHAssociation?H-HCORRECTHANSWER-
ToHprotectHtheHinterestsHofHpolicyholdersHandHbeneficiariesHagainstHlossHbecauseHanHinsolventHins
urerHisHunableHtoHpayHitsHcontractualHobligationsHunderHpropertyHandHcasualtyHinsuranceHpolicies
TheHbenefitHamountHpaidHtoHtheHinsuredHforHdismembermentHisHcalled?H-HCORRECTHANSWER-
CapitalHsum
WhichHofHtheHfollowingHisHeligibleHforHcoverageHunderHaHBOP:H-HCORRECTHANSWER-
OfficeHbuildingHofH3HstoriesHandH20,000HsquareHfeet
, WhichHofHtheHfollowingHisHNOTHoneHofHtheHfiveHextensionsHofHcoverageHavailableHunderHtheHbuildi
ngHandHpersonalHpropertyHcoverageHform?H-HCORRECTHANSWER-IncreasedHcostHofHconstruction
WhichHcommercialHpropertyHcoverageHformHisHdesignedHtoHcoverHbuildingsHunderHconstruction:H-
HCORRECTHANSWER-BuildersHRisk
WhichHofHtheHfollowingHisHNOTHaH"timeHelement"Hcoverage?H-HCORRECTHANSWER-PairsHandHsets
HowHmuchHcoverageHisHprovidedHforHfirearmsHinHanHunendorsedHhomeowner�sHpolicy?H-
HCORRECTHANSWER-$2500
AHnewlyHacquiredHautoHisHtoHreplaceHaHcoveredHautoHthatHhasHliabilityHcoverageHonly.HHowHlongHwi
llHtheHinsuredHhaveHtoHrequestHcollisionHcoverageHonHtheHnewHauto:H-HCORRECTHANSWER-4Hdays
TheH"periodHofHrestoration"HunderHbusinessHinterruptionHcoverageHends:H-HCORRECTHANSWER-
onHtheHdateHdamagedHpropertyH`should`HbeHrebuiltHorHrepaired
WhenHwrittenHonHaHblanketHbasis,HemployeeHdishonestyHcoverageHapplies:H-HCORRECTHANSWER-
perHloss
IfHanHinsuredHhasHaHbusinessHwithHwidelyHfluctuatingHinventoryHlevels,HtheHinsuredHwouldHmostHlik
elyHneed:H-HCORRECTHANSWER-ValueHreportingHform
WhichHofHtheHfollowingHwouldHNOTHbeHeligibleHforHcoverageHunderHaHdwellingHpolicy:H-
HCORRECTHANSWER-BuildingHwithHupHtoH6Hunits
InHOceanHMarineHifHtheHcaptainHandHcrewHstealHtheHshipHandHcargoHwithoutHtheHship-
ownersHknowledgeHitHisHreferredHtoHas:H-HCORRECTHANSWER-Barratry