CA PROPERTY & CASUAL TY EXAM
QUESTIONS CONTAINING 114 TERMS
WITH DEFINITIVE SOLUTIONS
Question : Contributory Plan
Correct answer: Used in a group Insurance. Employee and
employers share in the paying of premiums
Question : What do DP-1, DP-2, DP-3 All 3 dwelling forms
cover?
Correct answer: Loss of rental income
Question : Comparative Negligence
Correct answer: You can file a claim, but damages are
reduced based on that party's negligence.
Question : What has a single limit?
Correct answer: Property Damage.
Question : Ordinance or law
Correct answer: An endorsement for building code upgrades.
Question : What is the penalty for not carrying the amount
required in a co-insurance clause?
Correct answer: You become a co-insurer and pay a portion
of the loss.
Question : Retroactive date
Correct answer: The first date an occurrence would be
covered under a claim made CGL policy
Question : Blanket Insurance
Correct answer: Used with large groups where the members
change frequently and are not individually named: e.g.
Schools, Campgrounds, Charitable groups.
Question : Symbol #7
Correct answer: Specifically described autos.
Question : Tort
Correct answer: A wrongful act other than breach of contract
or a crime.
Question : What does DP-1 Cover?
Correct answer: Fire, Lighting, and internal explosion.
Question : Endorsement
Correct answer: Written agreement attached to a policy to
add or subtract insurance overages.
Question : Physical Hazard
Correct answer: Distinct characteristic arising from material,
structural, or operational features that increases a chance for loss (i.e being next to explosives.)
Question : What is excluded under CGL?
Correct answer: Pollution. With the exception of fuel spilled
during normal operations. Pollutions is normally covered under CPP policies or builders risk.
Question : Third party
Correct answer: The injured party. To whom liability
insurance pays claims.
Question : What does Hull cover?
Correct answer: Covers ship, engine, fuel.
Question : Mexican liability endorsement
Correct answer: Excess liability for accidents within 25 miles
of the U.S. border (trips of 10 days or less)
Question : Workers Compensation Insurance.
Correct answer: Insurance purchased by employers to cover
their employees in case workers is hurt on the job.
Question : OTC Coverages
Correct answer: Earthquake, Flood, Hail, Theft, Hitting an
animal, Gunshots. (no collision or upset)
Question : 5 basic ways to deal with risk ( S.T.A.R.R.)
Correct answer: Sharing,Transfer, Avoidance, Retention,
Reduction
Question : Surplus Lines
Correct answer: Found in property and casualty insurance. A
surplus line broker places insurance with a non-admitted insurer.
Question : Consequential Loss
Correct answer: A consequence of a direct loss. (e.g. a store
loses business income after a fire)
Question : Open Peril
Correct answer: All perils except those specifically excluded.
Question : CAARP coverage's
Correct answer: Liability, Medical Payments, Uninsured
Motorist.
Question : Binder
Correct answer: A temporary insuring contract (written or
oral)