CALA Property & Casualty Insurance Coverage

Question 1

What is typically covered under a standard homeowner's insurance policy?

Accepted Answer

Fire damage

Answer

Flood damage

Answer

Earthquake damage

Answer

Intentional damage

Question 2

Which of the following best describes liability coverage in an auto insurance policy?

Accepted Answer

Coverage for injuries or damage caused to others

Answer

Coverage for theft of the vehicle

Answer

Coverage for weather damage

Answer

Coverage for your own injuries

Question 3

What is the purpose of a deductible in a property insurance policy?

Accepted Answer

To eliminate small claims

Answer

To increase claim payments

Answer

To cover third-party liability

Answer

To provide extra living expenses

Question 4

Which of the following is usually NOT covered under a commercial general liability (CGL) policy?

Accepted Answer

Intentional acts by the insured

Answer

Bodily injury to a customer

Answer

Property damage to a third party

Answer

Legal defense costs

Question 5

In property insurance, what is 'actual cash value' (ACV)?

Accepted Answer

The depreciated value of the item

Answer

The cost to buy a brand-new item

Answer

The cost to repair the property

Answer

The insured amount on the policy

Question 6

What does comprehensive coverage in an auto policy typically include?

Accepted Answer

Vandalism and theft

Answer

Damage from a car accident

Answer

Mechanical breakdowns

Answer

Driver negligence