CA Insurance Policies & Regulations 4

Question 1

Under a California workers' compensation policy, which schedule governs the classification of employees for premium calculation purposes?

Accepted Answer

California Workers' Compensation Insurance Rating Bureau (WCIRB) Uniform Statistical Reporting Plan

Answer

In California, the WCIRB administers the classification system and rating plans used for workers' compensation insurance premium calculation.

Question 2

An insured intentionally sets fire to their own building to collect insurance proceeds. Which legal doctrine or statute most directly bars recovery in California?

Accepted Answer

California Insurance Code Section 533

Answer

California Insurance Code Section 533 bars coverage for losses caused by the insured's own willful acts, preventing recovery for intentional acts like arson.

Question 3

What is 'subrogation' in the context of California insurance claims?

Accepted Answer

The insurer's right to step into the insured's shoes and recover from a responsible third party after paying a claim

Answer

Subrogation allows the insurer to recover from the negligent third party the amount it paid to the insured, preventing a double recovery by the insured.

Question 4

A California personal auto policy includes uninsured motorist (UM) coverage. The insured is struck by a hit-and-run driver. For UM coverage to apply, what is typically required?

Accepted Answer

There must be physical contact between the vehicles OR corroborating evidence of the phantom vehicle

Answer

California requires either physical contact with the unidentified vehicle or independent corroborating evidence to prevent fraudulent hit-and-run claims.

Question 5

Which of the following statements about California's 'anti-stacking' provisions for uninsured motorist coverage is correct?

Accepted Answer

California allows UM stacking unless the policy contains a valid anti-stacking provision with proper premium credit

Answer

California permits insurers to include anti-stacking provisions for UM coverage, but only if the insured received a premium reduction for the anti-stacking restriction.

(CA) Certified Adjuster Designation Practice Test

(CA) Certified Adjuster Designation Practice Test

CA Insurance Policies & Regulations 4