Free Property Insurance Basics Practice Questions
California Property Broker-Agent exam (series Property) — 149 practice questions.
Subtopics: Standard form fire policy, Standard form contents, Residential cancellation, Nonrenewal notice, Cancellation notice, Guaranty fund limits, Insurable interest timing, Suit limitation, New policy cancellation, Covered perils, Return premium, Appraisal, Renewal offer notice, Late nonrenewal notice, Nonrenewal notice content, Cancellation notice review, Residential law scope, Cancellation for crime, Renewal after total loss, Wildfire nonrenewal moratorium, Suit limitation disaster, Proof of loss, Appraisal umpire, Vacancy, Insurer cancellation notice, Loss payment timing, Removal coverage, Efficient proximate cause, Willful act, Fire following earthquake, Earthquake as proximate cause, Contingent interest, Valued policy, Commercial nonrenewal, Commercial late notice, Commercial cancellation notice, License scope property, Insurable interest, Actual cash value, Replacement cost, Agreed value, Functional replacement cost, Direct vs indirect loss, Coinsurance purpose, Coinsurance calculation, Deductible, Declarations, Insuring agreement, Exclusions, Conditions, First named insured, Duties after loss, Subrogation condition, Liberalization, Other insurance pro rata, Blanket insurance, Loss payable clause, Construction class, Rate components, Underwriting purpose, Market value, Cancellation short rate, Policy territory, Assignment property, No benefit to bailee, Claim settlement options, Pair and set clause, Specific insurance, Terrorism program, Indirect loss time element, Hazard reduction underwriting, Named perils form, Open perils form, Burden of proof, Proximate cause, Concurrent causation, Anti-concurrent causation clause, Pro rata cancellation, Flat cancellation, Policy period, Salvage rights, No abandonment clause, Appraisal provision, Notice of loss, Depreciation, Recoverable depreciation, Percentage deductible, Period of restoration, Business income waiting period, Contribution by equal shares, Excess other insurance, Margin clause, Waiver of subrogation, Mysterious disappearance, Inherent vice exclusion, Wear and tear exclusion, Earth movement exclusion, Flood exclusion, Ensuing loss, Ordinance or law exclusion, Sue and labor, Ingress and egress, Reinstatement of limit, Coverage extension, Stated amount, Actual cash value calculation, Deductible application, Coinsurance - adequate insurance, Coinsurance with deductible, Coinsurance - limit cap, Coinsurance - value at time of loss, Coinsurance - who bears shortfall, ACV calculation - contents, Pro rata other insurance calc, Pro rata return premium calc, Pair and set calc, Proximate cause example, Direct loss example, Endorsements, Definitions section, Limits - sublimits, Mortgagee - proof of loss, Mortgagee - premium, Mortgagee - cancellation notice, Subrogation example, Appraisal procedure, Appraisal costs, Proof of loss timing, Suit against insurer, Burglary definition, Robbery definition, Theft definition, Water damage vs flood, Valued policy law, Liberalization timing, Occurrence, Named insured, Salvage value, Unearned premium, Settlement of claims - deductible, Additional coverages vs extensions, Policy conditions - concealment, Valuation
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Sample questions & answers
1. California requires fire insurance policies to provide coverage no less favorable than the:
California standard form fire insurance policy
California fire policies must be no less favorable to the insured than the statutory standard form fire policy.
2. The provisions of the California standard form fire policy are set out in:
Insurance Code Section 2071
The text of California's standard form fire policy is set out in Insurance Code Section 2071.
3. A California residential property policy in force more than 60 days may generally be cancelled only for reasons such as:
Nonpayment, fraud, or changes making the property uninsurable
After 60 days (or on a renewal), Section 676 permits cancellation only for nonpayment, conviction of a crime increasing the hazard, fraud or material misrepresentation, grossly negligent acts increasing the hazard, or physical changes making the property uninsurable.
4. An insurer electing not to renew a California residential property policy must provide written notice at least how many days before expiration?
75 days
For residential property policies expiring on or after July 1, 2020, Section 678(c) requires a nonrenewal notice at least 75 days before expiration, stating the specific reasons; 45 days still applies to renewal offers.
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Practice: Property Insurance Basics
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.
