Exam (elaborations)
CALIFORNIA PROPERTY AND CASUALTY EXAM
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CALIFORNIA PROPERTY AND CASUALTY EXAM
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CALIFORNIA PROPERTY AND CASUALTY EXAMThe process where by a mutul insurer becomes a stock company is called - Answers -
Demutalization
The process whereby a stock company a mutal insurer is called - Answers -Mutalization
The provision in a property policy which states that the insured has been paid up to their
insurable interest is - Answers -Valuation clause
The part of the policy that states the amout of coverage the insured property policy
period is - Answers -Declaration
Part of the policy that establishes limits upon the insurer and the insured with the
insuance policy - Answers -Conditions
Which are the characterics of negligence - Answers -Duty,breach,proximate cause,
damages
Which of the following is not a federal program - Answers -Worker' compensation
Absolute risk(liability) is imposed - Answers -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? - Answers -$0
what is the main purpose of tort law - Answers -to determine financial responsibillty for
damage
what of the following is not considered an intentional tort? - Answers -Auto accident
Which of the following statements is true regarding compensatory damages? - Answers
-There is usually no direct correlation between the amount of general and special
damages awarded to the victim
The amount to replace property with " like property of the same quality and
construction" is the properties - Answers -Replacement value
All of the following are considered intentional torts - Answers -except, Assult
What is the difference between per accident limit in a split limit policy and single limits -
Answers -There is no difference
,The intentional relinquishment of known right is - Answers -Waivier
Which type of loss is a business retirement or disability of key employee, exposed to
death retirement or disability of key employee, - Answers -Personnel loss exposure
The amount to replace an insured's damaged property - Answers -less depreciation, is
know as the, Actual cash value
The commercial property conditions included a condition called " liberalization". The
effect of this condition is - Answers -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?, - Answers -Perils insured
A possibility of financially loss resulting from the ownership of property is know as -
Answers -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., - Answers -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 injury - Answers -disability, death,
sickness, of valuable employee, Personnel loss exposure
Which of the following is also know as a human loss exposure - Answers -Personal loss
exposure
Which of the following best characterize a speculative risk? - Answers -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, - Answers -Impartial
What course of action does a party to a contract have if the other party is found to be
breach of that contract - Answers -Damage for breach, reasonable attorney fee and cost
Which part of the insurance contract summarize the major promises of the insurer -
Answers -Insuring agreement
Under tort law a corporation can be subject to a claim for legal liability on the basis, -
Answers -Absolute liability
,Risk management technique that eliminates a loss exposure and reduces the chance of
loss to zero is - Answers -Avoidance
A situation is which there only the possibility of loss or no loss is considered a - Answers
-Pure risk
A reduction in value of property that results immediately from damage to the property is
know as - Answers -Direct loss
Items that are paid on replacement cost is defined as the - Answers -Amount to replace
the damage property without a deduction for depreciation
A wrongful act other than a crime or breach of contrat is law - Answers -Tort law
The insurer decides not to renewan insured's personal auto policy. How much notice
must the insurer provide to the insured - Answers -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 -
Answers -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 - Answers -an unfair practice
a person can base his/her claim for liability on the basis of all of the following EXCEPT -
Answers -breach of liability
the term "assignment"refers to - Answers -the transfer of the insured's interest in a
policy to another party
the term "subrogation" refers to - Answers -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, - Answers -subrogation
an insurance deductible is - Answers -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
- Answers -notice must be sent with return receipt required
which of the following is considered special damages - Answers -Compensation for time
away from work
, Which advisory organization(s) develop forms for the standard market? - Answers -
Insurane service office and American association of insurances
Which of the following would be considered special dmamges? - Answers -Lost wages
What do the initials S.tA.R.R reperesent? - Answers -Methods of risk mamagement
All of the following would be considered benfits of insurance except - Answers -
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 - Answers -Tort law
What of the following is NOT one the three main types of insurance losses - Answers -
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, - Answers -Excluded under the concurrent
causation
An open peril policy protects agaginst the loss from - Answers -Any peril, other than
those specifically excluded
What factor supportd the principle of indemnity? - Answers -Insurable interest
All of the following are characteristics of an ideally insurable loss exposure"except" -
Answers -Losses that are catastrophic
The amount to replace property with like property of the same quality and construction
is the - Answers -Replacement cost
Whatis the process whereby insurers decides which customers to insure and what
coverage to offer - Answers -Underwriting
The amount paid for damaged propertywhich is equal to the price for which it could
have been sold is called - Answers -Market value
A policy may not be transferred to another without - Answers -Written consent of the
insured
An insured's loss reserve for a claim is - Answers -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 -
Answers -Liability loss exposure
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