Download California property and casualty exam Question & Answers 2025 and more Exams Nursing in PDF only on Docsity!
Question & Answers 2025
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
Question & Answers 2025
Absolute risk(liability) is imposed - CORRECT ANSWER ✔✔When there is negligence whether proven or not X is in an accident with Y. X suffers $5000 of damage but it is determined that X is 60% responsible for the accident. How much would X receive under CONTRIBUTORY negligence rules? - CORRECT ANSWER ✔✔$ 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
Question & Answers 2025
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
Question & Answers 2025
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
Question & Answers 2025
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 without an addition premium In a commercial lines program policycommon policy condition do not include which of the following as a condition?, - CORRECT ANSWER ✔✔Perils insured A possibility of financially loss resulting from the ownership of property is know as - CORRECT ANSWER ✔✔insurable interest laura is driving her own car on behalf of her employer laura's negligent operation of her car injures a member of public. The employer may be held liable because of what is called., - CORRECT ANSWER ✔✔Vicarious liability Type of exposure can be best defined as a condition or situation where the exposure to financial loss is presented to a business owner by the
Question & Answers 2025
injury - CORRECT ANSWER ✔✔disability, death, sickness, of valuable employee, Personnel loss exposure Which of the following is also know as a human loss exposure - CORRECT ANSWER ✔✔Personal loss exposure Which of the following best characterize a speculative risk? - CORRECT ANSWER ✔✔A situation that offers the possibility for a loss or gain In the state of CA no rate will remain in effect if it is considered to be any of the following, EXCEPT, - CORRECT ANSWER ✔✔Impartial What course of action does a party to a contract have if the other party is found to be breach of that contract - CORRECT ANSWER ✔✔Damage for breach, reasonable attorney fee and cost Which part of the insurance contract summarize the major promises of the insurer - CORRECT ANSWER ✔✔Insuring agreement Under tort law a corporation can be subject to a claim for legal liability on the basis, - CORRECT ANSWER ✔✔Absolute liability
Question & Answers 2025
Whatis the process whereby insurers decides which customers to insure and what coverage to offer - CORRECT ANSWER ✔✔Underwriting The amount paid for damaged propertywhich is equal to the price for which it could have been sold is called - CORRECT ANSWER ✔✔Market value A policy may not be transferred to another without - CORRECT ANSWER ✔✔Written consent of the insured An insured's loss reserve for a claim is - CORRECT ANSWER ✔✔An estimate or the amount that the insurer will pay What is the type of loss exposre that would include land and property attached to it - CORRECT ANSWER ✔✔Liability loss exposure What type of policy protect against loss from any peril except those that are specifally excluded - CORRECT ANSWER ✔✔All-risk or open peril Who is considered the first party to an insurance contract - CORRECT ANSWER ✔✔The insured
Question & Answers 2025
A written provision that modifies the provisions of the original contracts is know as - CORRECT ANSWER ✔✔An endrorsment In a commericial property the insurance claim is deniend because of the insured action's. the mortgage holder will in most cases., - CORRECT ANSWER ✔✔Still have right to receive the full amount of the loss a payment Named insured on a commercial insurance policy is "sam stone and dan Sullivan DBA S&S bar and grill" if the insurer cancels the policy, they are required to mail or deliver written notice to - CORRECT ANSWER ✔✔Only san stone Which type of exposure can be best be defined as a condition or situation for any exposure or finanicial loss is presented to an individual or family by such cause as injurydisability, death or sickness - CORRECT ANSWER ✔✔Personal loss exposure What is the primary reason for co-insurance clauses in property polices
- CORRECT ANSWER ✔✔to encourage insurd's to purchase coverages near the value of the property
Question & Answers 2025
in an unendorsed claims-made general liability policyhow long does an insured have to report a claim which occurred during the policy perio - CORRECT ANSWER ✔✔60 days To determine the fact actual cash value of commercial bulding for coinsurance purposes uses - CORRECT ANSWER ✔✔Fair market value What causes is commony used to require's purchase insurance close to the value of the property - CORRECT ANSWER ✔✔Coinsurance clause A distinct feature of the alternative funding method know as self- funding is - CORRECT ANSWER ✔✔The benefits are tailored to the group Actual cash value is defined as the - CORRECT ANSWER ✔✔The amount to replace damage property minus depreciation Which of the following would be know as the process whereby an insurer determine appropriate changes for its policies - CORRECT ANSWER ✔✔Rate-making
Question & Answers 2025
All of the following would be considered benefits of insurance EXCEPT - CORRECT ANSWER ✔✔Retention of the loss by the insured What is the formula for actual cash value (ACV) in determinig loss values - CORRECT ANSWER ✔✔Replacement cost less depreciation Which of the followingwould be classified as a property insurance coverage - CORRECT ANSWER ✔✔Other-than-collision coverage Which of the following is the reason that an insured should not be making any kind of profit as the result of an insurance claim/loss being paidbut rather, the payment should restore the insured to the financial status that existed prior to the loss with no chance of any type of profit., - CORRECT ANSWER ✔✔Basic principle of insurance What is the effect of "concurrent causation" exclusion under the "cause of loss-broad form in a commercial property policy? - CORRECT ANSWER ✔✔If there is a loss resulting from two or more perils that occur at the same time to cause a loss then is no coverage is any of the perils are excluded What will the mortgage holder do in the event that an insurer does not pay claim as the result of the actions of the insured - CORRECT ANSWER
Question & Answers 2025
Which of the following combinations of characteristics should be considered when making a an insurance recommendation to a propective insured that has just purchased a new office building? - CORRECT ANSWER ✔✔The structure that is exposed a loss, the perils that may occur, consequently causing a loss possible financial impact of loss What type of insurance company is owned by individuals that are stockholder in the company; and share in the profits of the company? - CORRECT ANSWER ✔✔Stock insurance companies All of the following explain the characterics that are unique to insurance contracts EXCEPT - CORRECT ANSWER ✔✔There is an equal exchange of amounts or values within the contract With regards to insurance applicability the word "risk" can be best defined as which of the following? - CORRECT ANSWER ✔✔The uncertainty associated with a loss occurring All of the following insurance company are private insurers; EXCEPT - CORRECT ANSWER ✔✔Fraternal insurance company
Question & Answers 2025
What would be the reason(s) for $100 deductible versus a $ deductible - CORRECT ANSWER ✔✔Neither of these apply An indivual who loves next to nuclear power plant is exposed to which of the following types of hazard - CORRECT ANSWER ✔✔Physical Which of these is defined as "exclusive agent' - CORRECT ANSWER ✔✔Sells for one insurance company and only that company's products. The concept of "pure risk" involves the possibitly of chance of which of the following? - CORRECT ANSWER ✔✔A loss only An employee is operating their own car for their employer. The individual injures a person in a area as result of negligent drivng. The reson why the employer would be held liable is because of which of the following? - CORRECT ANSWER ✔✔Vicarious liability Which of the following coverages' does an open peril policy provide? - CORRECT ANSWER ✔✔Perils other than those specifically named as being excluded
Question & Answers 2025
during the application process for a personal auto policy. the applicant says that he has not had any tickets or accidents. The insurance company accepts the risk and issues the policy. Shortyly after. the insured's vehicle is stolen resulting in the insurer paying the loss and canceling the policy. This despite the fact that they found out that the insured had received several traffic tickets that he neglected to mention. What is the reason for the course of action of the insurer - CORRECT ANSWER ✔✔the traffic tickets that were not disclosed were not material. This is why the policy was not recinded and the claim was paid under California insurance code marketing department is responsible for all of the following; except - CORRECT ANSWER ✔✔bulk mailing A representation as to the past - CORRECT ANSWER ✔✔present or future is an ,verified promise When must insurance records for insurance agents and insurance broker be made available to the insurance commissioner? - CORRECT ANSWER ✔✔all times When may a representation be withdrawn? - CORRECT ANSWER ✔✔only before the insurance is in effect
Question & Answers 2025
RW and associates is an agency which represents BLG insuaracne corporation. RW and associates may leave the name BLG insurance corporation in its advetertisments by clearly stating the relationship between the two business in any of the following ways ; EXCEPT - CORRECT ANSWER ✔✔RW And Associates underwriting for Blg insurance Corporation Which of the following describes an insurer who has enough financial resources only to provide for all its liabilities and for all reinsurance of all outstanding risk? - CORRECT ANSWER ✔✔insolvent Represention as to the future is considered which of the following - CORRECT ANSWER ✔✔promise An insurer that has a certificate of authority in California is - CORRECT ANSWER ✔✔amitted The execution of a policy involes which of the following? - CORRECT ANSWER ✔✔signing a covering note
