California Property and Casualty Insurance Test Pool Questions and answers, rated A
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California Property and Casualty
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California Property And Casualty
California Property and Casualty Insurance Test Pool Questions and answers, rated A
The term "Time element Coverage" is used when the amount of loss depends on what?
The time it takes to repair, rebuild, or restore damaged property. - -The term time element coverage is used for many indir...
california property and casualty insurance test pool questions and answers
rated a the term time element coverage is used when the amount of loss depends on what the time it takes to rep
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California Property and Casualty
Insurance Test Pool Questions and
answers, rated A
The term "Time element Coverage" is used when the amount of loss depends on what?
The time it takes to repair, rebuild, or restore damaged property. - ✔✔-The term time element coverage
is used for many indirect losses, such as a business income loss, because the amount of loss might not
be directly related to the amount of property damage that occurred, but it is related to the time it takes
to repair,, rebuild, or restore the damaged property. Many factors can influence the ultimate loss,
including the availability of supplies and replacement parts.
Which is NOT one of the common law defenses against an employer's liability?
Proximate cause - ✔✔-Assumption of risk, contributory negligence, and the fellow servant rule are the
traditional common law defenses against employer liability.
Are Vehicles eligible for a Personal Auto Policy PAP if used in a delivery business?
No. Vans used in a delivery business are not eligible for coverage. - ✔✔-Generally, four-wheel private
passenger autos, pickups, and vans owned by an individual or married couple are eligible if used for
pleasure or general transportation. Pickups and vans used in a business, other than farming or ranching,
are not eligible.
Business owners policies provide an additional coverage for preservation of property when it is removed
from the premises to protect it from loss by a covered peril. The coverage will apply at other locations
for up to?
30 Days - ✔✔-The preservation of property additional coverage under a BUSINESS OWNERS POLICY
covers direct physical loss or damage from an cause if the property has been removed to another
,location in order to protect it from loss by a covered peril. Coverage applies while the property is being
moved and while it is temporarily stored at another location, but only for 30 days after the property is
first moved.
Which losses are excluded under the physical damage coverage of a personal auto policy?
Loss of custom furnishings in a customized van
loss caused by freezing of the cooling system
Damage to equipment designed for the detection of Radar. - ✔✔-Damage to a covered auto while being
used as apart of a car pool is not excluded.
Under the BUSINESS AUTO COVERAGE PART, liability insurance applies to mobile equipment while it is:
Being carried or towed by a covered auto. - ✔✔-Although mobile equipment exposures are usually
covered by CGL insurance, it is covered by business auto insurance while being carried or towed by a
covered auto because in such cases it is considered an extension of the covered auto.
Insurance is a mechanism used to manage which type of risk?
Pure risks. - ✔✔-Insurance is only used to manage pure risks that involve only the possibility of loss and
no opportunity for gain.
Coverage for Vandalism and malicious mischief is attached to a policy, it will be suspended whenever
the building has been vacant for more than how many days?
30 Consecutive days. - ✔✔-If a dwelling policy includes the extended coverage (EC) perils, coverage for
vandalism and malicious mischief (V&MM) may also be added. However, this coverage will not apply
whenever the building has been vacant from more than 30 consecutive days.
Commercial general liability coverage provides medical expense payments for accidental injuries if the
expenses are incurred and reported to the insurer within what date?
, One year after the accident date. - ✔✔-CGL insurance policies provide coverage for medical expense
payments for accidental injuries if the expenses are incurred and reported to the insurer within one year
after the accident date.
An employer purchased a fidelity bond to protect against potential losses by employee dishonesty. In
this situation, each of the employees covered by the bond is considered?
A Principle. - ✔✔-Fidelity bonds are contracts between three parties. The employees who are required
to act honestly are the principals. The surety or guarantor, which is usually an insurance company,
agrees to be responsible for a loss if a principal violates the terms of the bond. The obligee, the
employer, is the party who is being protected by the bond and who will be paid if a loss occures.
When insurance is written on a dwelling form, each of the following types of property would be insured
under Coverage A (Dwelling Coverage).
A Laundry room ATTACHED to the building
Building Equipment and outdoor equipment
Materials and supplies used for construction or repair of the dwelling. - ✔✔-The storage shed connected
to the dwelling by a utility line would be considered an "other structure" available for insurance under
Coverage B.
On Homeowners policies, "insured location" is a broad term describing where liability coverage apply.
Family cemetery plots
Any newly acquired premises
A non owned premises used as a temporary residence by an insured. - ✔✔-Family cemetery plots, newly
acquired premises, and premises used as a temporary residence by an insured are all included in the
policy definition of "insured location." Farm exposures are specifically excluded by the homeowner
eligibility rules.
The most common definition of actual cash value (ACV) in the property insurance field is?
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