CPCL California Property and Casualty license exam - Set 2 - Part 2

Test your knowledge of technical writing concepts with these practice questions. Each question includes detailed explanations to help you understand the correct answers.

Question 21: Under a standard homeowners policy, detached structures such as a shed are insured under Coverage B for a limit equal to what portion of Coverage A?

Fifty percent

Thirty percent

Five percent

Ten percent

Question 22: Under a homeowners policy, Coverage C insures the insured's personal property against covered perils at which of the following locations?

Anywhere in the world

Only inside the dwelling

Only on the residence premises

Only within California

Question 23: A burglar steals jewelry from an insured's home. Under an unendorsed homeowners policy, the special sub-limit on jewelry applies specifically to which kind of loss?

All covered losses

Fire losses only

Theft losses only

Flood losses only

Question 24: Loss of use under a standard homeowners policy is provided for a limit equal to what portion of the Coverage A dwelling limit?

Ten percent

Thirty percent

Fifty percent

Eighty percent

Question 25: Which of the following is excluded from personal property coverage under a standard homeowners policy?

Furniture in the living room

Clothing kept in closets

A guest's property, if requested

A motor vehicle and its parts

Question 26: Coverage E, personal liability, under a homeowners policy responds when the insured is legally obligated to pay for which of the following?

Bodily injury or property damage to others

Damage to the insured's own home

The insured's own medical bills

Wear and tear on the dwelling

Question 27: Coverage F, medical payments to others, under a homeowners policy pays the medical expenses of an injured guest on which basis?

Only if the insured is at fault

Only for household residents

On a no-fault basis

Only for the named insured

Question 28: Which of the following correctly distinguishes Coverage E from Coverage F under a homeowners policy?

Both require the insured's fault

Both are no-fault coverages

Coverage F requires fault

Coverage E needs fault; F does not

Question 29: A homeowner injures a visitor while operating a riding lawn mower used to maintain the yard. Under Section II, this exposure is treated how?

Excluded as a motor vehicle

Covered as a vehicle servicing premises

Covered only under auto insurance

Excluded as a business pursuit

Question 30: Under the homeowners Section II supplementary coverages, the insurer pays a small limit for property the insured damages while in the insured's care, even without legal liability. This is called which of the following?

Damage to property of others

Loss of use

Coverage F medical payments

Fair rental value

Question 31: How does a dwelling policy differ from a homeowners policy with respect to liability coverage?

It includes broader liability

Liability is always included

Liability is not automatic

It excludes all property coverage

Question 32: Among the dwelling policy forms, which one insures the dwelling and other structures on an open peril basis?

DP-1

The standard fire policy

DP-2

DP-3

Question 33: Under a dwelling policy, how is coverage for theft of personal property typically provided?

Automatically on all forms

Only by adding an endorsement

Never available

Only on the DP-1 form

Question 34: Which of the following is true of a dwelling policy but not a homeowners policy?

The insured need not occupy it

It automatically covers liability

It must cover an owner-occupant

It always includes theft coverage

Question 35: On a dwelling policy, personal liability and medical payments added through the Personal Liability Supplement are designated by which coverage letters?

Coverages A and B

Coverages E and F

Coverages L and M

Coverages C and D

Question 36: For a California residential property policy expiring after July 1, 2020, how many days before expiration must the insurer deliver a notice of nonrenewal?

Ten days

Twenty days

Forty-five days

Seventy-five days

Question 37: At least how many days before a California residential property policy expires must the insurer deliver either an offer of renewal or a notice of nonrenewal?

Forty-five days

Ten days

Sixty days

Ninety days

Question 38: After a California residential property policy has been in effect more than sixty days, the insurer may cancel it only for certain reasons. Which of the following is a permitted ground?

The insurer changed its appetite

A single inquiry about coverage

Nonpayment of premium

The home is in a wildfire area

Question 39: Under the standard mortgage clause, a mortgagee's right to be paid for a covered loss is protected even if which of the following occurs?

The insured intentionally burns the home

The mortgage is fully repaid

The lender cancels the loan

The home increases in value

Question 40: California requires that an applicant for residential property insurance receive which of the following at or before application?

The insurer's reinsurance treaty

The agent's commission schedule

A blank claim form

The Residential Property Insurance Disclosure

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