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Fred Loya Practice Test (106 questions)
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Fred Loya Practice Test (106 questions)
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Fred Loya Practice Test (106 questions)What course of action does a party to a contract have if the other party is found to be in
breach of that contract? - correct answer-Damages for breach, reasonable attorney fees,
and costs.
A representation in an insurance contract qualifies as of the following? - correct
answer-implied warranty
What does it mean if an agent's license is inactive? - correct answer-the agent cannot
transact any insurance business for which is valid, active license is required
In the State of CA, no rate will remain in effect if it is considered to be any of the following,
EXCEPT: - correct answer-Impartial
The amount paid for damage property which is equal to the price for which it could have
been sold is: - correct answer-Market value
The limited Mexico endorsement applies to trips to Mexico with a duration of: - correct
answer-10 days or less
Which of the following types of coverage would pay for losses which occurred during the
policy period and are found for up to one year after policy termination? - correct answer-Loss
sustained
What must an insurer do who accepts an application from an agent who is not specifically
appointed by that insurer, and then issues a policy from that application ? - correct
answer-forward to the commissioner a notice of appointment with 14 days of receipt of
application
If an insured borrow's a neighbor's vehicle to run a personal errand, how do the policies
respond in the event of an auto incident? - correct answer-The neighbor's policy is primary
and the driver's policy is excess
The equipment dealer's coverage form covers all of the following types of property, EXCEPT:
- correct answer-Motor vehicles designed for highway use
Which type of exposure can be best defined as a condition or situation where the exposure
to financial loss is presented to an individual or family from causes such as injury, disability,
death, sickness, or unemployment. - correct answer-Personal Loss Exposure
Which of the following is also known as a human loss exposure? - correct answer-Personal
loss Exporsure
, If a tenant is insured under a building personal property coverage form, when is the property
considered vacant? - correct answer-when there is insufficient business personal property
present to conduct customary operations.
It is a violation of the CA Insurance Code to act as a producer for a non-admitted carrier
unless: - correct answer-The producer is a surplus lines broker
In CA, excess and surplus lines coverage need to be placed through: - correct
answer-surplus lines broker
Under a scheduled personal property endorsement, loss to stamps are excluded when they
are: - correct answer-Being shipped with a freight company
Which of the following is most likely to be eligible for the CA fair plan? - correct answer-A
well-maintained dwelling located in a hazardous brush area
Mitchell's (unendorsed) personal auto policy liability coverage would pay for: - correct
answer-The cost of repairing the neighbor's fence that Mitchell damaged due to the negligent
operation of his car
All of the following are principal rating factors under proposition 103 for PAP, EXCEPT: -
correct answer-numbers of listed drivers
Which of the following persons is NOT an insured under section 1 of homeowner's policy? -
correct answer-The named insured's (non-resident) spouse.
An umbrella policy: - correct answer-provides broad excess liability coverage over one or
more primary policies
All of the following expenses are covered in addition to the limits of liability under Coverage
A of PAP, EXCEPT: - correct answer-pre-judgment interest
Carmen is driving her own car on behalf of her employer. Carmen's negligent operation of
her car injures members of the public. The employers may be held liable because of what is
called: - correct answer-Vicarious liability
Which of the following perils is insured against in the special form but not in the basic form? -
correct answer-Collapse
which of the following types of policies pays for bodily injury or property damage which
occurs or is discovered during the policy period? - correct answer-claims made commercial
liability policy
If an armored car carrying an insured's bank deposit is robbed, what insurance would the
insured need to be covered? - correct answer-outside the premises-theft or money and
securities
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