All of the following are options that an insurer may use to settle a physical damage claim in a Personal Auto Policy EXCEPT?

A) Pay only an insurer designated shop

B) Replace the stolen property

C) Repair the damage property

D) Pay for the loss in money

A) Pay only an insurer designated shop

Under an unendorsed personal auto policy transportation expense coverage applies to

A) Collision and other than collision losses

B) Other than collision losses only

C) Theft only losses

D) None of the above

A) Collision and other than collision losses

If an insured timely requests coverage for newly acquired automobile under a Personal Auto Policy what coverage is provided before the request is made

A) Broadest coverage for any vehicle shown on the declarations

B) Average coverage for all vehicle shown on the declarations

C) Lowest coverage for any vehicle shown on declarations

D) Statutory minimum required coverage

A) Broadest coverage for any vehicle shown on the declarations

The substation of the insurer for the insured to pursue and rights the insured may have against a third party who is liable for a loss paid by the insurer is

A) Arbitration

B) Assignment

C) Liberalization

D) Subrogation

D) Subrogation

If the first Named Insured chose to delete the uninsured motorist coverage completely what effect would that have on another Named Insured

A) No Coverage; the rejection  applies to all insureds

B) No effect; all Named Insureds must sign the rejection

C) Uninsured motorist coverage is mandatory and cannot be rejected

D) Uninsured motorist coverage would be provided up to the financial responsibility limits

A) No Coverage; the rejection applies to all insureds

An applicant would like to buy a Personal Umbrella policy

A) Your insurer will require that he maintain under lying liability coverage by carrying auto and personal liability coverage

B) Your insurer will require that he maintain underlying coverage by carrying auto liability coverage. Underlying personal liability coverage is not required

C) Your insurer will require that he maintain underlying liability  coverage by carrying personal liability coverage. Underlying auto liability coverage is not required

D) There is no requirement for underlying policies

A) Your insurer will require that he maintain under lying liability coverage by carrying auto and personal liability coverage

Which of the following is NOT an uninsured motor vehicle as defined by Personal Automobile Policy's Uninured Motorists coverage

A) A vehicle owned by a state agency which self-insures its automobile

B) a vehicle not covered by an automobile liability policy or bond

C) A hit and run vehicle whose owner or operator cannot be identified

D) A vehicle which is covered by an automobile liability policy or bond, but the insured or bond company is insolvent

A) A vehicle owned by a state agency which self-insures its automobile

What percent of the Homeowners policy Coverage A- Dwelling limit applies to Coverage B- Other Structures?

A) 5%

B) 10%

C) 20%

D) 25%

B) 10%

The insured can do all of the following by adding Other Structures-Increased limits endorsement to the homeowners policy EXCEPT?

A) Provide additional coverage for one structure only

B) List each structure and provide a separate limit for each

C) Raise the coverage limit on one structure and delete coverage for others

D Provide additional coverage for named structures while coverage for the others remains standard

A) Provide additional coverage for one structure only

For negligent liability to exist, which of the following BEST describes all the elements that must be present

A) A duty to act, a failure to act, an injury to another person and an uninterrupted chain of events

B) A duty to act, a branch of the duty, a resulting injury, a trail lawyer and a judge

C) The criminal, the crime, a police officer and a court of law

D) An insured, an agent, an insurer and a claim

A) A duty to act, a failure to act, an injury to another person and an uninterrupted chain of events

The term "Subrogation" refers to the

A) insurers right to recover payment from a responsible third party

B) Insured right to receive broadened coverage at no extra charge

C) Transfer of the insured's interest in a policy to another party

D) Insurance policy applying separately to each insured

A) Insurers right to recover payment from a responsible third party

A written provision that modifies the provisions of the original contract is  known as

A) A condition

B) An endorsement

C) An insuring agreement

D) A miscellaneous provision

B) An endorsement

The unraised premium returned to the insured when the insurer cancels a policy is known as

A) Overline refund

B) Pro-rata refund

C) Long-tail refund

D) Short-rate refund

B) Pro-rata refund

An insured's duties after a loss are described in the Homeowners Section I Conditions. Which of the following is NOT a correct statement about these duties? The insured must

A) Make reasonable and necessary repairs to protect the property from further damage, such expense is paid by the insurer

B) Notify the police if it is a theft loss, but only if there is some reasonable chance of recovery of property

C) prepare an inventory of damaged personal property showing the quantity description, ACV and amount of loss

D) Submit to questions under oath, while not in presence of any other insured

D) Submit to questions under oath, while not in presence of any other insured

Which of the following types of loss would result in a claim for monetary damages due to injury to another or damage to another's property

A) Liability loss

B) Personal property loss

C) Physical loss

D) Real property loss

A) Liability loss

Earthquake policies and other policies have deductibles. An earthquake policy deductibles in the comparison to the typical Dwelling or Homeowner

A) Much smaller

B) Slightly longer

C) Many times longer

D) About the same size

C) Many times longer

The term "Loss potential" is also known as Loss

A) Cost

B) Loading

C) Exposure

D) Expectancy

C) Exposure

Why is it important to understand the difference between "share the expense car pooling" and "for-hire" under a Personal Automobile Policy

A) The deductible is higher for "for-hire"

B) The limit of liability is higher for "for-hire"

C) "Share the expense" is covered and "for-hire" is excluded

D) The definition of covered persons is different for these two uses

C) "Share the expense" is covered and " for-hire" is excluded

What type of limit is written for the medical payment limit in the Personal Automobile policy

A) Aggregate

B) Per Accident

C) Per Occurrence

D) Per person

D) Per person

Which coverage are typically provided in a Boatowners policy

A) Hull and Collision

B) Physical damage, liability and medical payment

C) Hull, running down and protection and indemnity

D) Property, Liability and Contingent

B) Physical damage, liability and medical payment

Negligence can be defined as

A) The failure to act in a manner that is reasonably prudent

B) The failure to abide by statutory law

C) A wrongful act that causes harm

D) A dangerous act done on purpose

A) The failure to act in a manner that is reasonably prudent

If the first Named Insured chose to delete the uninsured motorist coverage completely, what effect would that have on another Named Insured

A) No coverage; the rejection applies to all insured

B) No effect; all Name Insured must sign the rejection

C) Uninsured motorist coverage is mandatory and cannot be rejected

D) Uninsured motorist coverage would be provided up to the financial responsibility limits

A) No coverage; the rejection applies to all insured

All of the following are options that an insurer may use to settle a physical damage claim in a Personal Auto Policy EXCEPT

A) Pay only an insurer designated shop

B) Replace the stolen property

C) Repair the damaged property

D) Pay for the loss in money

A) Pay only an insurer designated shop

A portion of covered Loss that is NOT paid by the insurer is the

A) Deductible

B) Agreed Value

C) Coinsurance Clause

D) Indemnification Factor

A) Deductible

If an  insured rents a vehicle while on a 2 week vacation in the U.S. what coverage is provided under the Personal Automobile Policy

A) Liability coverage only

B) Liability, medical and uninsured motorist coverage only

C) All coverage is enforce in the insured Personal Automobile Policy

D) No coverage available because the vehicle is not a "covered automobile"

C) All coverage is enforced in the insured Personal Automobile Policy

All of the following would be considered special damages EXCEPT

A) Loss of leg

B) Rehabilitation

C) Ambulance charges

D) Hospital Expenses

A) Loss of leg

Under an unendorsed personal auto policy, transportation expense coverage applier for

A) Collision and other than collision losses

B) Other than collision losses only

C) Theft only losses

D) None of the above

A) Collision and other than collision losses

The Perils insured against under most inland marine policies are on

A) A different in condition basis

B) A comprehensive basis

C) An open peril basis

D) A named peril basis

C) An open peril basis

What gives an injured party the right to seek compensation if it is proven that another person's negligence led to the injury

A) Case Law

B) Criminal Code

C) Statutory Code

D) Tort Law

D) Tort Law

Which of the following state program would cover a property owner for basis coverage if the owner was not able to obtain coverage through the private market

A) TPA Plan

B) FAIR Plan

C) LLAA Plan

D) Dwelling Plan

B) FAIR Plan

Your HO-3 insured wants to make sure he has liability protection against claim for false arrest, libel and slander. You should

A) Tell him he should add the Personal Injury endorsement

B) Tell him not to worry; this coverage is in the basic policy

C) Tell him this coverage is not available under a Homeowners policy. He must buy a commercial liability coverage

D) Suggest he add the Ordinance or Law coverage

A) Tell him he should add the Personal Injury endorsement

How many days of an advance notice MUST an insurer give to non-renew a Personal Automobile policy

A) 5 days

B) 10 days

C) 20 days

D) 30 days

D) 30 days

Which of the following property is subject to a special limit only for the peril of theft

A) Jewelry

B) Securities

C) Stored value cards

D) business personal property on premises

A) Jewelry

California has lower financial responsibility liability limits than most other states. If a California Personal Automobile policy insured, carry minimum limits of coverage, has an accident in a state that REQUIRES higher limits, then

A) The endorsed policy does not cover out of state operation of the automobile

B) The policy will automatically provide the higher required limit at no extra charge

C) She is breaking the law of the state unless she had added the other "other-state coverage" endorsement

D) The policy will provide the higher limits retroactively but only after she has paid the difference in premium

B) The policy will automatically provide the higher required limit at no extra charge

A portion of covered loss that is NOT paid by the insurer is the

A) Deductible

B) Agreed Value

C) Coinsurance clause

D) Indemnification factor

A) Deductible

The insured can do all of the following by adding on Other Structure-Increased limits endorsement to the homeowners policy EXCEPT

A) Provide additional coverage for one structure only

B) List each structure and provide a separate limit for each

C) Raise the coverage limit on one structure and delete coverage for others

D) Provide additional coverage for named structure while coverage for other remains standard

A) Provide additional coverage for one structure only

An Umbrella policy provides

A) Broad excess liability coverage over one or more primary policies

B) Broad primary coverage for most personal or commercial loss exposures

C) coverage for outdoor fairs and exhibitions in case of inclement weather

D)Excess physical damage coverage

A) Broad excess liability coverage over one or more primary policies

The cause of Loss in a insurance policy is known as the

A) Condition

B) Hazard

C) Peril

D) Risk

C) Peril

If a motor home is scheduled on a miscellaneous type vehicle endorsement all of the following property is covered EXCEPT

A) Awnings

B) Cabanas

C) Luggage

D) Refrigeration facilities

C) Luggage

Which of the following major section of a policy are represented by the letters of "DICE"

A) Declarations, Insuring Agreement, Certificates of Insurance, Exclusions

B) Definitions, Insurance Certificates, Conditions, Exclusions

C) Declarations, Insuring Agreement, Conditions, Endorsements

D) Declarations, Insuring Agreement, Conditions, Exclusion

D) Declarations, Insuring Agreement, Conditions, Exclusions

An intentional omission of a material fact on the part of an insured that entitles to insurer to rescind the contact is

A) Personal Judgement

B) Presumed Knowledge

C) Excluded Disclosure

D) Fraudulent Concealment

D) Fraudulent Concealment

Making an insured whole by restoring them to the same condition as before a LOSS is an example

A) Reinsurance

B) The retention of risk

C) Fiduciary responsibility

D) The principle of indemnity

D) The principle of indemnity

What is the difference between the per accident limit in a split limit policy and the single limits

A) There is no difference

B) The per accident limit applies to all claims and the single limit applies to all claims

C) The per accident limit applies to all claims and the single limit applies only to bodily injuries

D) The per accident limit applies only to bodily injuries and the single limit applies to all claims

D) The per accident limit applies only to bodily injuries and the single limit applies to all claims

All of the following expenses are covered in addition to the limits of liability under Coverage A of a personal auto policy EXCEPT

A) Loss of earnings to attend trials at the company's request

B) Cost of bail bonds relating to a covered accident

C) Premium for appeal bonds

D) Pre-judgement interest

D) Pre-judgement interest

As defined in the California Insurance Code, "Insurance" is a

A) Contract

B) Gamble

C) Peril

D) Risk

D) Risk

Under which of the following classes of insurance would a Loss due to theft in transit be covered

A) Automobile

B) General Liability

C) Inland Marine

D) Surety

C) Inland Marine

Which  of the following situations suggest the need for the attachment of the Additional Residence Rented to Other endorsement

A) Wants protection for 50k of her own personal property in the furnished rental dwelling

B) Is concerned that the person she is renting the dwelling to will move out without paying rent

C) Wants to have Medical Payment coverage to pay for injuries to renters that require medical attention

D) Is concerned that she might be liable to the renters for injuries that occur in connection with the rental 

D) Is concerned that she might be liable to the renters for injuries that occur in the connection with the rental

What perils are included in a standard fire policy

A) Fire only

B) Fire and extended coverage

C) Fire and lightning only

D) Fire, lightning and removal

D) Fire, lightning and removal

Which of the following describes a defense that can be used by a negligent party for an accident in which the other injured party

A) First in, first out

B) Corollary negligence

C) Assumption of the risk

D) 1, 2 and 3 are all false

D) 1, 2 and 3 are all false

What are the two major coverage provided in Section 2 of the HO-3 policy

A) Personal liability and Defense Cost Coverage

B) Personal liability and Medical Payment to Others

C) Personal liability and Professional Service Coverage

D) Personal liability and Personal Injury Protection Coverage

B) Personal liability and Medical Payment to Others

The standard Homeowners policy provides replacement cost coverage for which of the following?

A) Personal property

B) The Dwelling structure

C) Tree, shrubs and plants

D) Business personal property

A) Personal property

What is the homeowners policy limit of liability for Coverage B- Other Structures

A) 10% of the Coverage a limit

B) 15% of the Coverage a  limit

C) 20% of the Coverage a limit

D) 25% of the Coverage a limit

A) 10% of the Coverage a limit

If an individual does NOT  own a automobile or have regular use of an automobile, what endorsement to a Personal Automobile

A) Extended non-owned liability coverage endorsement

B) Miscellaneous type vehicle endorsement

C) Named non-owned coverage endorsement

D) No coverage available

C) Named non-owned coverage endorsement

What is one difference between a DP-2 and a DP-3

A) The inside coverage limit for a specified personal property

B) The perils insured against under Coverage A

C) The limit of liability under Coverage D

D) The definition of who is insured

B) The perils insured against under Coverage A

Under a scheduled personal property endorsement, Loss to stamps are excluded when they are

A) With the insured while the insured is temporarily in Japan

B) Being shipped with a freight company

C) Being shipped by registered mail

D) Located in Canada

C) Being shipped by registered mail

All of the following would be considered federal government insurance programs EXCEPT

A) National Flood Plan Insurance

B) Workmen's Compensation Insurance

C) Federal Crop Insurance Program

D) Federal Deposit Insurance Corporation

B) Workmen's Compensation Insurance

Insurer are REQUIRED to set aside funds to cover their contractual obligations to pay outstanding (open) claims. These funds are called

A) Loss Reserves

B) Earned Premiums

C) Long tail losses

D) Incurred Premiums

A) Loss Reserves

Under a Personal Automobile policy, if a newly acquired automobile replaces a cover automobile

A) Immediately

B) 4 days

C) 14 days

D) 30 days

A) Immediately

Which of the following items is covered without endorsement under a personal auto policy?

A) A portable radio

B) A citizens band radio

C) A permanently installed CD player

D) Customer carpeting in a conversion can

C) A permanently installed CD player

Inland Marine Policies nearly always            coverage

A) Basis Perils

B) Broad Peril

C) Open Peril

D) Standard Peril

C) Open Peril

What is it called when an insurer uses higher rates for an individual solely based on religion race or ethic group

A) Redlining

B) Categorizing

C) Social Injustice

D) Unfair Discrimination

C) Social Injustice

Coverage for the vessel on Yacht Insurance policy is called

A) Hull Insurance

B) Inch Maree Clause

C) Scheduled Coverage

D) Protection and Indemnity

A) Hull Insurance

Which of the following common law defenses prevents a plaintiff, who is Not entirely free from fault from recovering damages from a negligent defendant

A) Controlled negligence

B) Cooperative negligence

C) Comparative negligence

D) Contributory negligence

D) Contributory negligence

California Earthquake Authority policies shall be marketed and policyholders serviced by

A) The Federal government

B) The California Earthquake Authority

C) Any insurer that writes earthquake insurance

D) The participating insurer that writes the underlying policy of residential property insurance

B) The California Earthquake Authority

Which of the following is an exclusion under the Coverage C- Personal Property Section of an HO-3 policy

A) Aircraft

B) Vehicle

C) Earth movement

D) Volcanic Eruption

B) Vehicle

The applicant wants a homeowners policy that has open peril coverage on his home (building structure). Assuming he is eligible for the

A) HO-2

B) HO-3

C) HO-6

D) HO-8

B) HO-3

An agent has important ethical responsibilities

A) Their insurers

B) The policy owners

C) The general public

D) 1, 2 and 3 are all true

D) 1, 2 and 3 are all true

Which of the following loss exposure is NOT covered by Section 2 of Bob's homeowners policy

A) Bob's use of a riding lawn mower, while he is mowing his lawn

B) Bob's use of a motorized golf cart, while he is playing golf on a golf course

C) Bob's activities while rebuilding a 1923 FORD for fun in his garage at home and no engine

D) Bob's (registered/license) personal auto, while used on his premises which includes 10 acres of undeveloped land

D) Bob's (registered/license) personal auto, while used on his premises which includes 10 acres of undeveloped land

Who owns a mutual insurance company

A) Stockholders

B) The State

C) Investment Bankers

D) Policyholders

D) Policyholders

An insured adds an automobile to her policy. She does not pay the additional premium when it is due, The insurer cancels the policy

A) 5 days

B) 10 days

C) 15 days

D) 20 days

B) 10 days

What is one reason an individual may purchase a dwelling policy instead of a homeowners policy

A) The dwelling from provides great flexibility in selecting coverage

B) The dwelling form provides broader coverage

C) Thee dwelling is occupied by two families

D) The owner does not reside in the dwelling

D) The owner does not reside in the dwelling

Which of the following statement is correct, regarding the requirements to be met in order to cancel a property or liability insurance policy

A) The insurance code has cancellation specification for commercial policies that are the same as they are for personal

B) A cancellation notice may be mailed and does not require a written acknowledge of receipt by the insured

C) Each insurer shall develop their own requirement and shall specify them in their policy

D) An insurer has broader cancellation rights than insured

B) A cancellation notice may be mailed and does not require a written acknowledge of receipt by the insured

A charge for a unit of insurance set out in a book of instructions is known as

A) Merit rating

B) Manual rating

C) Judge rating

D) Post-selection rating

B) Manual rating

Insurance terminology, an interest a person has in property that is required by insurance contracts, such as his ownership of an automobile is called

A) Subrogation

B) Fiduciary interest

C) Insurable interest

D) Insurance interest

C) Insurable interest

Which of the following would be considered special damages

A) Scarring

B) Lost wages

C) Pain and suffering

D) Loss of an index finger

B) Lost wages

Making an insured whole by restoring them to the same condition as before a loss is an example

A) Reinsurance

B) The retention of risk

C) Fiduciary responsibility

D) The principle of indemnity

D) The principle of indemnity

The Personal Auto Policy offers a coverage that is still called Comprehensive by many insurer. The Personal Auto Policy name for this coverage is

A) Transportation Expenses

B) Other than collision (OTC)

C) Uninsured Motorist

D) Collision

B) Other than collision (OTC)

Which of the following is considered an intentional tort

A) Unauthorized release of confidential information

B) Ownership of a pet rattlesnake

C) Blasting operations

D) An Automobile accident

A) Unauthorized release of confidential information

Which of the following coverage is automobile included in a Dwelling policy

A) Replacement cost coverage if the insured limit is at least 80% of replacement cost

B) coverage for theft of personal property

C) Medical Payment to Others Coverage

D) A special coverage limit for money

A) Replacement cost coverage if the insured limit is at least 80% of replacement cost

The Premium for which protection has been provided is the

A) Earned Premium

B) Unearned Premium

C) Pre-paid Premium

D) Reinsured Premium

A) Earned Premium

What is the MINIMUM discount percentage of the Good Driver Discount

A) 5%

B) 10%

C) 20%

D) 25%

C) 20%

All of the following person MUST adhere to the promises made in a contact of insurance EXCEPT the

A) Agent

B) Commissioner

C) Insured

D) Insurer

B) Commissioner

Which of the following organizations provides a range of advisory, rating and actuarial services relating to property and casualty insurance

A) The Insurance Service Office (ISO)

B) The International Risk Management Institute

C) The National Council on Compensation Insurance

D) The National Association of Insurance Commissioners (NAIC)

D) The National Association of Insurance Commissioners (NAIC)

Which of the following function is defined as insurer identifying and selling to potential customers

A) Claims Handling

B) Underwriting

C) Rate making

D) Marketing

D) Marketing

What endorsement can be used to insure a motorcycle under a personal auto policy

A) Named non-owner coverage endorsement

B) Miscellaneous type vehicle endorsement

C) No endorsement is needed; the endorsed PAP covers motorcycles

D) No endorsement is available to broaden PAP to cover motorcycles

B) Miscellaneous type vehicle endorsement

If an insured with Personal Automobile policy has an accident in a state with mandatory Personal Injury Protection (PIP), how does the policy respond

A) The insured may apply for the additional PIP coverage within 10 days of the accident

B) PIP  coverage is provided only for medical provides in the state

C) Coverage automatically is broadened to provide PIP

D) Coverage remains as written

C) Coverage automatically is broadened to provide PIP

Medical payment coverage in a Boatowners policy covers injuries to

A) Employees of the insured

B) Permissive occupants of the insured's boat

C) Fare-paying passengers on the insured's boat

D) Passengers in other boats struck by the insured boat

B) Permissive occupants of the insured's boat

The place to obtain a general description of the powers given by the state to a person holding an Insurance Agent's License is the

A) California Insurance Code

B) Insurer's agency agreement

C) Insurer's underwriting guide

D) Insurer's policy applications

A) California Insurance Code

A contract of adhesion is

A) Negotiated between two parties

B) Transferable to any member of the insured family

C) Affected by chance, so consideration between parties may be unequal

D) Prepared by one of the parties and accepted or rejected by the other

D) Prepared by one of the parties and accepted or rejected by the other

The Mexico Coverage endorsement may be attached to Personal Automobile Policies. The Mexico Coverage endorsement

A) Must be attached to U.S. policies for insured's who citizens of Mexico

B) Will provide primary liability coverage for insured's driving anywhere in Mexico

C) Must be added to the policy of an insured who lives within 25 miles of the U.S. border

D) Provides excess liability coverage for accidents in Mexico within 25 miles of U.S. border

D) Provides excess liability coverage for accidents in Mexico within 25 miles of U.S. border

What is the purpose of GAP insurance for automobile

A) To pay the difference between the Actual Cash Value (ACV) and the outstanding loan on an automobile

B) To pay the difference between the limit of liability on the policy and excess judgement

C) To pay the difference between  the Actual Cash Value (ACV) and the replacement cost of auto

D) To pay the difference between the coverage on the policy and the coverage mandated by another state

A) To pay the difference between the Actual Cash Value (ACV) and the outstanding loan on an automobile

A insured ran a red light causing extensive damage to a claimants auto. Which type of coverage would insurer be

A) Personal liability

B) General liability

C) Automobile liability insurance

D) Automobile physical damage insurance

C) Automobile liability insurance

What endorsement can be used to insure a motorcycle under a personal auto policy

A) Contents Broad Form

B) Inland Marine Policy

C) Personal property floater

D) Personal property warranty

D) Personal property floater

In insurance terminology, an interest a person has in property that is required by insurance contacts, such as his ownership of an auto is called

A) Subrogation rights

B) Fiduciary interest

C) Insurable interest

D) Insurance interest

C) Insurable interest

Which of the following is a principal rating factor for a Personal Automobile Policy

A) The number of miles the insured drives each year

B) The geographic location of the insured

C) The type of vehicle insured

D) The gender of insured

A) The number of miles the insured drives each year

All of the following are Additional Coverage provided by the Homeowners policy EXCEPT

A) Fire department service

B) Reasonable repairs

C) Fair rental value

D) Debris removal

C) Fair rental value

What coverage is available under the Miscellaneous Type Vehicle Endorsement

A) Liability only

B) Physical damage only

C) Liability and Physical damage only

D) All coverage under the Personal Automobile policy

D) All coverage under the Personal Automobile policy

Which of the following statement is correct, regarding the requirements to be met in order to cancel a property of liability insurance policy

A) The insurance code has cancellation specifications for commercial policies that are the same as they are

B) A cancellation noticed may be mailed and does not require a written acknowledgement of receipt by the insured

C) Each insurer shall develop their own requirements and shall them in their policy

D) An insurer has broad cancellation rights than an insured

B) A cancellation noticed may be mailed and does not require a written acknowledgement of receipt by the insured

The Ordinance of Law exclusion/limitation in a Homeowners policy may cause a gap in coverage in which of the following situations

A) A community ordinance requires dogs to be on a leash. Insured's dog, running free in park bites a child

B) The insured's home is damaged by fire and must be rebuilt to meet present building codes

C) A law requires all swimming pools on residential properly to be forced and to have self-closing gates

D) The insured has business occupancy that is permitted by Homeowners rules and does not affect his coverage

B) The insured's home is damaged by fire and must be rebuilt to meet present building codes

All of the following are considered intentional torts EXCEPT

A) Assault

B) Libel

C) Ownership of a wild animal

D) Slander

C) Ownership of a wild animal

An insurance definition of the term Hazard is

A) A chance of Loss

B) That which cause a reduction in income

C) A condition which creates or increases the chance of Loss

D) The act of transferring the unpredictability of a Loss to someone else

C) A condition which creates or increases the chance of Loss

Under a personal Automobile policy, on what basis are vehicle valued

A) Actual Cash Value

B) Replacement Cost

C) Coinsurance Value

D) Wholesale Value

A) Actual Cash Value

Property under inland marine policies is usually valued on

A) An actual cash value basis

B) A tax assessed value basis

C) A replacement cost basis

D) A stated value basis

D) A stated value basis

The National Flood insurance program

A) Covers dwellings, but not commercial risks

B) May be written in community in U.S.

C) May only be written in communities participating in the program

D) Has an emergency program for risks located in communities that do not choose to participate in the program

C) May only be written in communities participating in the program

Internet advertisement made by an agent or broker licensed in California must provide all of the following information EXCEPT

A) Office address

B) License number

C) Name on the license

D) Expiration date of license

D) Expiration date of license

Which item of real property under a HO-3 are valued on an actual cash value basis

A) Build-in appliances

B) Exterior paint

C) Roofing

D) Wallpaper

C) Roofing

Why would a boat owner with an HO-3 policy want to buy a Boatowners policy

A) To obtain liability and hull coverage in one policy

B) To obtain protection from uninsured boaters while out on the water

C) To increase hull coverage on his boat because the homeowners policy's coverage is extremely limited

D) 1, 2 and 3 are all true

D) 1, 2 and 3 are all true

Which cases of Loss form provides the broadest coverage

A) Basic form

B) Broad form

C) Special form

D) Standard form

C) Special form

The system that makes automobile bodily injury and property damage liability insurance available to applicants who are unable to obtain coverage

A) CAARP

B) the CEA

C) the FAIR Plan

D) the California JUA

A) CAARP

What's the one purpose of California Automobile Assigned Risk Plan (CAARP)

A) To establish a fund for insurance insolvencies

B) To approve the policy language submitted by insures

C) To make automobile insurance available to residents of the state

D) To make Earthquake insurance available to properties within the state

C) To make automobile insurance available to residents of the state

Which of the following is a valid reason for an applicant to purchase a Homeowners policy instead of Dwelling policy

A) The house is a six-family dwelling with the insured, who is the owner, occupying one of the units

B) The insured does want to have personal liability coverage

C) The insured wants to pay a lower premium

D) The insured desired broader coverage

D) The insured desired broader coverage

Which of the following losses would be covered under the Personal Auto Policy other than collision coverage

A) The insured's suitcase is stolen from his car while the car is parked at the airport

B) The sides and top the insured's car are damaged when it rolls on an icy curve

C) The insured locks his keys in the car, then breaks the car window to gain quick access

D) Someone shoots the rear car window out while the insured's car is parked in the street overnight

D) Someone shoots the rear car window out while the insured's car is parked in the street overnight

All of the following vehicle are eligible for coverage under a Personal Automobile Policy EXCEPT

A) An SUV owned by a 25 yrs old individual

B) A pickup truck leased to a husband/wife

C) A private passenger automobile owned by a partnership

D) A conversion van leased to a 19 yrs old individual

C) A private passenger automobile owned by a partnership

The amount to replace property with like property of the same quality and construction is the

A) Market value

B) Stated amount

C) Replacement Cost

D) Actual Cash Value (ACV)

C) Replacement Cost

Livery conveyance is BEST  described as a

A) Share-the-expenses car pool

B) Vehicle for hire to transport people

C) Vehicle for hire to transport property

D) Commercial vehicle with more than four wheels

B) Vehicle for hire to transport people

What do we call the process whereby insurers decide which customer to insure and what coverage to offer

A) Adverse Selection

B) Underwriting

C) Ratemaking

D) Marketing

B) Underwriting

What additional coverage does a DP-2 have compared to a DP-1

A) Improvements, alterations and additions

B) Additional living expenses

C) Personal liability

D) None of the above

B) Additional living expenses

What is a compared by dividing losses incurred during the year by premium earned

A) Loss ratio

B) Trade profit

C) Combined ratio

D) Underwriting Result

A) Loss ratio

According to the California Code of Regulations governing claims practices, it is unlawful for an insurer handling an automobile loss to do any of the following

A) Require that the automobile be repaired at a specific shop

B) Provide a list of repairs shops to the claimant upon request by the claimant

C) Direct a claimant to travel a long distance to specific shop to obtain an inspection

D) Direct a claimant to travel a long distance to specific repair shop to obtain a repair estimate

A) Require that the automobile be repaired at a specific shop

Which of the following persons in NOT on insured under Section I of a Homeowners policy

A) The Named Insured

B) The Named insured's (resident) spouse

C) The Named insured's (resident) 25 yrs old nephew

D) The Named Insured's non-resident spouse

D) The Named Insured's non-resident spouse

All of the following meet the definition of an insured under a HO-3 policy EXCEPT

A) 19 yr old foster child residing with the insured

B) 23 yr old son enrolled as a full-time student in another state

C) 75 yr old grandparent residing in an adult care facility

D) 90 yr old uncle residing in the household

C) 75 yr old grandparent residing in an adult care facility

The Watercraft endorsement to the Homeowners policy extends coverage for

A) Physical damage and liability coverage for all owned watercraft

B) Liability coverage for watercraft listed on the schedule

C) Physical damage for watercraft listed on schedule

D) Liability coverage for all owned watercraft

B) Liability coverage for watercraft listed on the schedule