Insurance Policies & Regulations Flashcards
7 cards from real CA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Insurance Policies & Regulations flashcards as text
Which doctrine applies in California when a covered peril and an excluded peril both contribute to a single loss?
Answer: Efficient proximate cause doctrine
California courts apply the efficient proximate cause doctrine: if the predominant cause is covered, the loss is covered even if an excluded peril contributed.
Under the California Standard Form Fire Policy, which of the following is NOT a standard covered peril?
Answer: Earthquake
The California Standard Form Fire Policy covers fire, lightning, and explosion, but earthquake is excluded and requires a separate policy or endorsement.
An insured under a commercial general liability (CGL) policy is sued for copyright infringement in advertising. Under which coverage part would this typically be addressed?
Answer: Coverage B – Personal and Advertising Injury Liability
Coverage B of a CGL policy addresses personal and advertising injury, which includes copyright infringement in the insured's advertisement.
What is the purpose of a 'Mortgagee Clause' (also called a 'standard mortgage clause') in a California homeowner's policy?
Answer: It protects the lender's interest independently, even if the insured's coverage is voided by misrepresentation
The standard mortgage clause gives the lender an independent right to recover, meaning the insurer cannot use the insured's acts or omissions to defeat the lender's claim.
In California, what is the minimum notice period an insurer must give before canceling a personal lines policy that has been in force for more than 60 days (for reasons other than non-payment)?
Answer: 30 days
California Insurance Code Section 677 requires at least 30 days' notice for mid-term cancellation of personal lines policies in force over 60 days for reasons other than non-payment.
A business owner's policy (BOP) typically combines which two primary coverage elements?
Answer: Commercial property and commercial general liability
A BOP packages commercial property insurance and commercial general liability insurance into a single policy, usually for small to mid-size businesses.
Under California Insurance Code Section 2071, after a total loss under a homeowner's policy, how long does an insured have to submit a proof of loss?
Answer: 90 days
California Insurance Code Section 2071 provides the insured 60 days from the insurer's request to submit proof of loss, but after a total loss the insurer must extend this to at least 90 days.