CALIFORNIA PROPERTY AND CASUALTY EXAM EXAM

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CALIFORNIA PROPERTY AND CASUALTY EXAM EXAM

QUESTIONS

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -100 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: The amount to replace an insured's damaged property

Answer:

less depreciation, is know as the, Actual cash value Question 2: The provision in a property policy which states that the insured has been paid up to their insurable interest is

Answer:

Valuation clause Question 3: The term "proximate clause " is best defined by which of the following?

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A negligent act that causes bodily injury or property damge that follows a sequence of uninterrupted, but related chains of events

Question 4: a common fourmula that is used to establish cash value is

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ACV=replacement cost minus depreciation

Question 5: All of the following would be considered benfits of insurance except

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Retention of loss by the insured Question 6: The amount to replace property with " like property of the same quality and construction" is the properties

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Replacement value Question 7: 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

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a homeowner decides not to install a pool in the backyard Question 8: What exactly does a policy know as "open peril" protect against

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Perils not specially named as exclusions in the policy

Question 9: A policy may not be transferred to another without

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Written consent of the insured

Question 10: A wrongful act other than a crime or breach of contrat is law

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Tort law

Question 11: what of the following is not considered an intentional tort?

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Auto accident Question 12: The process where by a mutul insurer becomes a stock company is called

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Demutalization

Question 13: What is the primary reason for co-insurance clauses in property polices

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to encourage insurd's to purchase coverages near the value of the property Question 14: 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 injury

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disability, death, sickness, of valuable employee, Personnel loss exposure Question 15: 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

Answer:

Only san stone Question 16: All of the following are characteristics of an ideally insurable loss exposure"except"

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Losses that are catastrophic

Question 17: what is the main purpose of tort law

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to determine financial responsibillty for damage Question 18: 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

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Personal loss exposure

Question 19: Absolute risk(liability) is imposed

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When there is negligence whether proven or not

Question 20: Which of the following would be considered special dmamges?

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Lost wages Question 21: Which of the following statements is true regarding compensatory damages?

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There is usually no direct correlation between the amount of general and special damages awarded to the victim Question 22: The amount paid for damaged propertywhich is equal to the price for which it could have been sold is called

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Market value

Question 23: Who is considered the first party to an insurance contract

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The insured Question 24: 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,

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subrogation

Question 25: the term "assignment"refers to

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the transfer of the insured's interest in a policy to another party

Question 26: All of the following are considered intentional torts

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except, Assult

Question 27: An insured's loss reserve for a claim is

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An estimate or the amount that the insurer will pay