California property and casualty exam questions and answers graded A

California property and casualty exam questions and answers graded A The process where by a mutul insurer becomes a stock company is called - CORRECT ANSWER Demutalization The process whereby a stock company a mutal insurer is called - CORRECT ANSWER Mutalization The provision in a property policy which states that the insured has been paid up to their insurable interest is - CORRECT ANSWER Valuation clause The part of the policy that states the amout of coverage the insured property policy period is - CORRECT ANSWER Declaration Part of the policy that establishes limits upon the insurer and the insured with the insuance policy - CORRECT ANSWER Conditions Which are the characterics of negligence - CORRECT ANSWER Duty,breach,proximate cause, damages Which of the following is not a federal program - CORRECT ANSWER Worker' compensation Absolute risk(liability) is imposed - CORRECT ANSWER When there is negligence whether proven or not X is in an accident with Y. X suffers $5000 of damage but it is determined that X is 60% responsible for the accident. How much would X receive under CONTRIBUTORY negligence rules? - CORRECT ANSWER $0 what is the main purpose of tort law - CORRECT ANSWER to determine financial responsibillty for damage what of the following is not considered an intentional tort? - CORRECT ANSWER Auto accident Which of the following statements is true regarding compensatory damages? - CORRECT ANSWER There is usually no direct correlation between the amount of general and special damages awarded to the victim The insurer decides not to renewan insured's personal auto policy. How much notice must the insurer provide to the insured - CORRECT ANSWER 30 days an insured's loss reserve for a claim isan estimate of the amount insurer will pay for present and future loss, which of the following is an example of loss prevention - CORRECT ANSWER a homeowner decides not to install a pool in the backyard which of the following describes the act of making a false entry in any book statement of report of any insurer with the intent to device any examiner lawfully appointed to examine the insured's - CORRECT ANSWER an unfair practice a person can base his/her claim for liability on the basis of all of the following EXCEPT - CORRECT ANSWER breach of liability the term "assignment"refers to - CORRECT ANSWER the transfer of the insured's interest in a policy to another party the term "subrogation" refers to - CORRECT ANSWER the insured's right to recover payment from a responsible 3rd party insur's right to recover the payment of the claim after they paid the insured for their property losses a negligent 3rd party is know as, - CORRECT ANSWER subrogation an insurance deductible is - CORRECT ANSWER the amount of covered expense that the insured pays before the insurer pays, all of the following are requirements for a notice by mail to an insured by insurer except - CORRECT ANSWER notice must be sent with return receipt required which of the following is considered special damages - CORRECT ANSWER Compensation for time away from work Which advisory organization(s) develop forms for the standard market? - CORRECT ANSWER Insurane service office and American association of insurances Which of the following would be considered special dmamges? - CORRECT ANSWER Lost wages What do the initials S.tA.R.R reperesent? - CORRECT ANSWER Methods of risk mamagement All of the following would be considered benfits of insurance except - CORRECT ANSWER Retention of loss by the insured What gives an insured party the right to seek compensation if it is proven that another person with negligence contributed to the injury - CORRECT ANSWER Tort law What of the following is NOT one the three main types of insurance losses - CORRECT ANSWER Financial loss Under a special cause of loss form if a landslide is caused by an unnatural flow of water due to improper grading, the loss is, - CORRECT ANSWER Excluded under the concurrent causation An open peril policy protects agaginst the loss from - CORRECT ANSWER Any peril, other than those specifically excluded What factor supportd the principle of indemnity? - CORRECT ANSWER Insurable interest All of the following are characteristics of an ideally insurable loss exposure"except" - CORRECT ANSWER Losses that are catastrophic The amount to replace property with " like property of the same quality and construction" is the properties - CORRECT ANSWER Replacement value All of the following are considered intentional torts - CORRECT ANSWER except, Assult What is the difference between per accident limit in a split limit policy and single limits - CORRECT ANSWER There is no difference The intentional relinquishment of known right is - CORRECT ANSWER Waivier Which type of loss is a business retirement or disability of key employee, exposed to death retirement or disability of key employee, - CORRECT ANSWER Personnel loss exposure The amount to replace an insured's damaged property - CORRECT ANSWER less depreciation, is know as the, Actual cash value The commercial property conditions included a condition called " liberalization". The effect of this condition is - CORRECT ANSWER To automatically apply broader coverage to the commercial property coverage part if a policy form revision would broaden coverage withou