Free Casualty Insurance Basics Study Guide
California Casualty Broker-Agent exam — Casualty Insurance Basics.
Negligence and liability concepts are covered in the national guide. California's Casualty exam adds the state's fault rules, a few strict liability statutes, the casualty license scope, and commercial cancellation and nonrenewal rules.
Fault and damages
- California uses pure comparative negligence (Li v. Yellow Cab Co., 1975; Civ. Code 1714). Recovery is reduced by the claimant's share of fault and is never barred by it.
- Under Proposition 51, liability for non-economic damages is several only, in proportion to each defendant's fault (Civ. Code 1431.2).
- A dog owner is strictly liable for bites in public or where the victim is lawfully on private property, even if the dog never bit before (Civ. Code 3342).
- A vehicle owner is vicariously liable for a permissive driver up to 15/30/5 (Veh. Code 17151). An employer that lets an unfit or unlicensed person drive faces negligent entrustment liability (Veh. Code 14606).
The casualty license
- The casualty broker-agent license covers insurance against legal liability for injury or property damage (CIC 1625(c)).
- California's classes of insurance include liability, workers' compensation, boiler and machinery, burglary, credit, sprinkler, automobile, and aircraft (CIC 100).
Commercial cancellation and nonrenewal
| Action | Rule |
|---|---|
| Cancel a commercial policy | 30 days' notice, or 10 days for nonpayment or fraud (CIC 677.2) |
| Nonrenew, or renew with reduced coverage or a rate increase over 25% | 60 to 120 days' notice (CIC 678.1) |
| Late nonrenewal notice | The policy continues unchanged for 60 days after notice |
Other casualty rules
- Motor carriers for hire must carry higher financial responsibility limits than private passenger minimums (Veh. Code 34630).
- An insurer isn't liable for losses caused by the insured's willful act (CIC 533).
Common exam traps
- California is pure comparative. Non-economic damages are several only under Prop 51.
- Dog bite liability is strict.
- Commercial nonrenewal notice is 60 to 120 days; commercial cancellation notice is 30 days, or 10 days for nonpayment.
Practice Casualty Insurance Basics questions All Casualty Broker-Agent topics
Practice questions are study aids generated for exam preparation and are not actual exam questions. Content is provided for educational purposes and is not legal advice. Verify current statutes, rules, and exam specifications with the Insurance Department and the exam administrator before relying on it.
