Free Homeowners Policy Concepts Practice Questions
California Property and Casualty Broker-Agent exam (series Property & Casualty) — 95 practice questions.
Subtopics: ACV depreciation, Replacement cost time limit, Replacement cost extensions, Rebuilding elsewhere, Combining limits, Contents advance payment, ALE advance, ALE extension, Civil authority ALE, Disclosure acknowledgment, Phone application disclosure, Bill of Rights, Declarations statements, Periodic RC estimate, RC estimate components, RC estimate prohibitions, RC estimate copy, Misleading RC estimate, RC estimate records, Valuation CE, Disaster claim statements, Residence employee WC, Household employee threshold, Coverage forms, Coverage C territory, Liability coverages, Property coverages, Coverage D limit, Coverage E limit, Coverage F limit, HO-4 renters, HO-6 condominium, HO-3 special form, HO-5 comprehensive, HO-8 modified, Coverage F medical payments, Coverage E personal liability, Special limits of liability, Loss of use, Scheduled personal property, Coverage B percentage, Self-storage limit, Section II exclusions, Section I excluded perils, Definitions, Special limits, Personal property, Additional coverages, Perils insured against, Section I exclusions, Conditions, Section II additional coverages, Selected endorsements, Scheduled property endorsement, HO-6 special coverage, Replacement cost endorsement, HO-5 special limits, HO-5 Coverage C, HO-5 loss settlement
Read the Homeowners Policy Concepts study guide
Sample questions & answers
1. When a California insurer settles a structure loss at actual cash value, a deduction for physical depreciation may apply only to:
Components normally repaired or replaced over time
Section 2051(b) defines ACV as repair or replacement cost less a fair and reasonable depreciation deduction, applied only to components normally subject to repair or replacement during the useful life.
2. Outside a state of emergency, a California residential policy may not limit the time to collect full replacement cost to less than how long from the first actual cash value payment?
12 months
Section 2051.5(b) sets a 12-month minimum (36 months for losses related to a state of emergency), with six-month extensions for good cause.
3. When an insured acting in good faith is delayed by permit or contractor problems beyond their control, the insurer must extend the time to collect replacement cost by:
One or more six-month extensions for good cause
Section 2051.5(b) requires one or more additional six-month extensions for good cause for delays beyond the insured's control.
4. If a California insured with a total loss chooses to rebuild or buy a home at a different location, the insurer:
Pays up to the cost to rebuild at the original site
Section 2051.5(c) bars denying replacement cost or code upgrade benefits because the insured rebuilds or buys elsewhere, caps payment at the cost to rebuild at the original site, and bars a land value deduction.
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Practice: Homeowners Policy Concepts
Answer choices are shuffled every time, and every question comes with an explanation.
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.
