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CA property & Casualty practice exam Questions and Answers 2024
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CA property & Casualty practice exam
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CA property & Casualty practice examBob is thinking about obtaining insurance because he just found out he needs extensive
surgery that will require several days in the hospital. This situation of waiting until the
last minute to obtain insurance is known as: - answer Adverse Selection
According to the California insurance law, either party may rescind a contract for any of
the following reasons EXCEPT: - answer
- answer
One party intentionally omits information from the other party. - answer
If a representation is false in a material point, whether affirmative or promissory, the
injured party is entitled to rescind the contract. - answer
Once a contract is signed, it can never be rescinded. - answer
One party intentionally or unintentionally hides material information. - answer
#3 - answer
Which of the following are the main types of risks? - answer
- answer
Sharing and Transfer - answer
Avoidance and Retention - answer
Pure and Transfer - answer
Speculative and pure - answer
#4 - answer
What are the two types of torts? - answer
- answer
Intentional & Unintentional - answer
Legal & Non-Legal - answer
,Pure & Speculative - answer
Broad & Basic - answer
#5 - answer
When a right or privilege has been given up, a party cannot reassert that right or
privilege. The process of preventing the party from reasserting that right or privilege is
known as: - answer
- answer
Indemnity - answer
Estoppel - answer
Pro-rata - answer
Waiver - answer
#6 - answer
Which of the following is the amount of money the insured pays before the insurer pays
for the rest of the claim? - answerPremium
Which of the following is not a class of insurance? - answerCasualty
A hazard is best defined as: - answeranything that increases the chance of loss or
severity of loss due to a peril.
A hazard that deals with a persons mental attitude, behavior and habits is an example
of: - answerMoral hazard
Restoring the insured back to the condition he or she was in before the loss occurred is
known as: - answerIndemnification
Which of the following is defined as `an agreement between two or more parties
enforceable by law?` - answerContract
The uncertainty or chance of a loss occurring is known as: - answerrisk.
- answer
pure risk. - answer
,risk management. - answer
risk. - answer
speculative risk. - answer
#13 - answer
The degree of loss a person/organization faces from suits brought by a third party refers
to: - answerLiability Loss Exposure
- answer
Human Personnel Loss Exposure - answer
Liability Loss Exposure - answer
Loss Exposure - answer
Property Exposure - answer
#14 - answer
The state of being subject to a loss is considered: - answerexposure
- answer
risk - answer
hazard - answer
exposure - answer
insurance - answer
#15 - answer
Substitution of a small certain loss for a large uncertain loss is: - answerinsurance
- answer
insurance - answer
a pure risk - answer
an insurable event - answer
, law of large numbers - answer
#16 - answer
Which of the following elements of a contract is/are the binding force? -
answerConsideration
Insurance is a contract whereby one undertakes to indemnify another against: -
answerDamage
Loss control refers to: - answertaking the necessary precautions that will reduce the risk
of a loss.
The term loss exposure refers to: - answerthe possibility of a loss.
When an insured rejects uninsured motorist in writing this is considered: - answera
waiver
Which of the following is NOT a known private insurer? - answerBond Insurance
Companies
Which of the following is NOT required for a risk to be ideally insurable? - answer...The
loss must occur on the insured`s property.
Which of the following statements is true about reinsurance? - answerReinsurance is
the process whereby the insurer transfers all or part of the risk to another company.
Any contingent or unknown event, whether past or future, which may damnify a person
having an insurable interest or create a liability against him/her, may be insured against.
The more unpredictable a loss becomes: - answerthe more insurable it becomes.
Type of loss exposure pertaining to land and structures attached to it is: -
answerproperty loss exposure
Materiality is determined by the disadvantage placed on the other party and: -
answerboth are correct. the influence of the facts and not by the event
The law of large numbers is a principal that basically says: - answerthe larger the
amount of information gathered, the more reliable that information will be.
- answer
the more insurance you have, the more protected you are. - answer
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