CPCL California Property and Casualty license exam - Set 2 - Part 3

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

Question 41: A Riverside homeowner in a high wildfire-risk area cannot find coverage in the standard market. Which California program serves as the insurer of last resort for basic property insurance?

The California FAIR Plan

The California Earthquake Authority

The federal flood program

The Guarantee Association

Question 42: A basic California FAIR Plan policy generally does NOT provide which of the following?

Fire and lightning coverage

Coverage for windstorm or hail

Liability, theft, and water damage

Vandalism and malicious mischief

Question 43: A California Earthquake Authority residential policy typically applies its deductible in which form?

A flat five hundred dollars

No deductible at all

A fixed one thousand dollars

A percentage of the dwelling limit

Question 44: Under California law, what must an insurer do regarding earthquake coverage when it issues a residential property policy?

Include it automatically in every policy

Offer earthquake coverage to the applicant

Refer the applicant to the FAIR Plan

Exclude it without any notice

Question 45: Under the National Flood Insurance Program, which of the following events would NOT be considered a flood?

Sewer backup into the home

Overflow of inland or tidal waters

Rapid runoff of surface water

Mudflow caused by water

Question 46: The National Flood Insurance Program is administered by which entity, and what is generally true about binding coverage?

The CDI, and agents may bind it

The CEA, with instant coverage

FEMA, and coverage is not instant

A private pool, effective immediately

Question 47: Under California law, a structure in a state responsibility area must generally maintain defensible space extending what distance around the structure?

Ten feet

Thirty feet

Fifty feet

One hundred feet

Question 48: California's Safer from Wildfires framework and most structure losses point to which factor as the leading way homes ignite during a wildfire?

Direct flame contact only

Wind-blown embers

Lightning strikes

Internal explosions

Question 49: A personal articles floater that covers an insured's jewelry anywhere it travels is an example of which type of insurance?

Inland marine

Ocean marine

Dwelling property

Commercial general liability

Question 50: An insured schedules a diamond ring on the homeowners scheduled personal property endorsement. Compared with unendorsed coverage, what is one effect of scheduling the ring?

It adds a higher deductible

It narrows coverage to theft

It reduces coverage to actual cash value

It removes the Coverage C theft sub-limit

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