1
California Property and Casualty Exam
Graded A+ With Verified Questions and
Correct Answers
Most workers compensation policies are written for 1 year
terms. - correct answer - true
A person licensed as either a property and casualty
agent/broker or as an accident and health agent may be
authorized to transact disability insurance for an admitted
insurer by filing a notice of appointment from that insurer. This
is known as: - correct answer - Dual Authority
HMO's, PPO's, and POS, are referred to as what kind of care?
- correct answer - Managed care
Which of the following could offset the effects of not having a
disability income policy: - correct answer - cash savings
Which of the following is NOT one of the three extensions of
coverage under the special form? - correct answer - Collapse
If coverage exists under both an occurrence and a claims-made
policy, how will the policies share the loss? - correct answer -
The claims-made policy will provide excess coverage
A supplemental extended reporting period extends coverage: -
correct answer - indefinitely
Basic services - correct answer - Services that an HMO are
required to provide are referred to as which of the following
Risk Retention Groups are: - correct answer - liability insurers
owned by their policyholders
1
, 2
Barratry - correct answer - In Ocean Marine if the captain and
crew steal the ship and cargo without the ship-owners
knowledge
If the insured must rent a car because his was stolen, what is
the maximum dollar amount of coverage available under the
commercial auto policy? - correct answer - 600
Expected or intended losses - correct answer - exclusion under
the business auto liability coverage
Concealment - correct answer - the neglect to communicate
that which a party knows and ought to communicate
A disability income policy will do which of the following - correct
answer - Replace a portion of the insureds income if they
become disabled
Long-term care policies may not be cancelled or non-renewed
on the grounds of age. - correct answer - true
Under the conversion privilege how long does an insured
switching over from a group health package to a personal
health policy have? - correct answer - 31 days
Which of the following would NOT be considered an insured
under the homeowner's policy? - correct answer - 65 year old
uncle residing off the premises
Organizers of HMOs include commercial insurers, hospitals,
employers, unions, and local communities. - correct answer -
true
Disability income insurance - correct answer - type of disability
insurance that provide benefits if someone becomes ill and is
unable to work
2
, 3
permanent total - correct answer - is the most sever type of
disability
Bodily injuries - correct answer - usually excluded under errors
and omissions insurance
The period of time when no benefits are paid is called the black
out period - correct answer - true
In addition to ISO a commercial crime program falls under
Jurisdiction of - correct answer - Surety Association of America
If a building insured under a commercial property policy was
vacant for 60 days, what perils are excluded? - correct answer -
Vandalism, theft, breakage of glass, sprinkler leakage, and
water damage
Which of the following is correct about hospice care? - correct
answer - It is a provided coverage under part A of Medicare
What is true about Workers Comp. Insurance? - correct answer
- Employers are responsible for the cost of their employee
What is a difference between surety bonds and insurance
policies? - correct answer - Surety bonds are 3 party contracts,
insurance policies are 2 party contracts
All of the following are implied warranties under an Ocean
Marine Policy EXCEPT: - correct answer - Cost of Insurance
Coverage
Social security was invented to create a sense of stability and
benefits for retired workers. Social security was meant to
establish what? - correct answer - Minimum floor for the
participants
3
California Property and Casualty Exam
Graded A+ With Verified Questions and
Correct Answers
Most workers compensation policies are written for 1 year
terms. - correct answer - true
A person licensed as either a property and casualty
agent/broker or as an accident and health agent may be
authorized to transact disability insurance for an admitted
insurer by filing a notice of appointment from that insurer. This
is known as: - correct answer - Dual Authority
HMO's, PPO's, and POS, are referred to as what kind of care?
- correct answer - Managed care
Which of the following could offset the effects of not having a
disability income policy: - correct answer - cash savings
Which of the following is NOT one of the three extensions of
coverage under the special form? - correct answer - Collapse
If coverage exists under both an occurrence and a claims-made
policy, how will the policies share the loss? - correct answer -
The claims-made policy will provide excess coverage
A supplemental extended reporting period extends coverage: -
correct answer - indefinitely
Basic services - correct answer - Services that an HMO are
required to provide are referred to as which of the following
Risk Retention Groups are: - correct answer - liability insurers
owned by their policyholders
1
, 2
Barratry - correct answer - In Ocean Marine if the captain and
crew steal the ship and cargo without the ship-owners
knowledge
If the insured must rent a car because his was stolen, what is
the maximum dollar amount of coverage available under the
commercial auto policy? - correct answer - 600
Expected or intended losses - correct answer - exclusion under
the business auto liability coverage
Concealment - correct answer - the neglect to communicate
that which a party knows and ought to communicate
A disability income policy will do which of the following - correct
answer - Replace a portion of the insureds income if they
become disabled
Long-term care policies may not be cancelled or non-renewed
on the grounds of age. - correct answer - true
Under the conversion privilege how long does an insured
switching over from a group health package to a personal
health policy have? - correct answer - 31 days
Which of the following would NOT be considered an insured
under the homeowner's policy? - correct answer - 65 year old
uncle residing off the premises
Organizers of HMOs include commercial insurers, hospitals,
employers, unions, and local communities. - correct answer -
true
Disability income insurance - correct answer - type of disability
insurance that provide benefits if someone becomes ill and is
unable to work
2
, 3
permanent total - correct answer - is the most sever type of
disability
Bodily injuries - correct answer - usually excluded under errors
and omissions insurance
The period of time when no benefits are paid is called the black
out period - correct answer - true
In addition to ISO a commercial crime program falls under
Jurisdiction of - correct answer - Surety Association of America
If a building insured under a commercial property policy was
vacant for 60 days, what perils are excluded? - correct answer -
Vandalism, theft, breakage of glass, sprinkler leakage, and
water damage
Which of the following is correct about hospice care? - correct
answer - It is a provided coverage under part A of Medicare
What is true about Workers Comp. Insurance? - correct answer
- Employers are responsible for the cost of their employee
What is a difference between surety bonds and insurance
policies? - correct answer - Surety bonds are 3 party contracts,
insurance policies are 2 party contracts
All of the following are implied warranties under an Ocean
Marine Policy EXCEPT: - correct answer - Cost of Insurance
Coverage
Social security was invented to create a sense of stability and
benefits for retired workers. Social security was meant to
establish what? - correct answer - Minimum floor for the
participants
3
