1. Under a Personal Umbrella policy, what underlying coverages MUST an insured typically maintain?
A. Automobile only.
B. Personal liability only.
C. Automobile and personal liability. Correct
D. Automobile, personal liability, and professional liability.
Explanation
A Personal Umbrella policy typically requires underlying automobile and personal liability coverages to ensure comprehensive protection.
2. In the event of a declared 'state of emergency,' the timeline to rebuild and collect full replacement cost is extended from:
A. 12 months to 24 months
B. 12 months to 36 months
C. 24 months to 48 months
D. 24 months to 36 months Correct
Explanation
In a declared state of emergency, California regulations extend the timeline for rebuilding and collecting full replacement cost from 24 to 36 months.
3. The Named Insured listed on a Commercial Property Insurance Policy is 'Bill Smith and Tom Jones D.B.A. Wishy Washy Laundromat.' If the insurer cancels the policy they are REQUIRED to mail or deliver written notice to
A. Bill Smith and Tom Jones D.B.A. Wishy Washy Laundromat. Correct
B. only Bill Smith.
C. only Tom Jones.
D. only Wishy Washy Laundromat.
Explanation
Notice of cancellation must be sent to the named insured as listed, which includes both individuals and the business entity.
4. What coverage is available under the named non-owner coverage endorsement?
A. Liability only.
B. Liability and physical damage.
C. Physical damage and uninsured motorists.
D. Liability, medical payments, and uninsured motorists. Correct
Explanation
The named non-owner endorsement typically provides liability, medical payments, and uninsured motorists coverage for individuals who do not own a vehicle.
5. What is one of the principal rating factors under Proposition 103 allowed for Personal Automobile policies?
A. Driving record. Correct
B. Year of the automobile.
C. Make of the automobile.
D. Credit record.
Explanation
Proposition 103 emphasizes driving record as a primary rating factor to ensure fair pricing.