POL California Insurance Code and Ethics: Property and Liability Basics

What type of policy only establishes the value of an insured object when a loss occurs?

Open

If an object's value is not specified until a loss occurs, it is insured under a(n)...

Open policy

When an auto insurance policy is cancelled for nonpayment of premium, how many days' notice must the insurer provide to the policy-owner?

10 days

Any risk retention group must submit to an examination upon the request of the Commissioner within...

60 days

An unincorporated, nonprofit association representing all insurance companies in the State of California licensed to transact workers compensation insurance is known as...

California Workers Comp Inspection Rating Bureau (WCIRB)

Which of the following was designed to regulate the operation of risk retention groups and purchasing groups in California?

Federal Liability Risk Retention Act

All of the following are examples of insurable interest in property insurance EXCEPT...

Harry who is waiting for his distant cousin's beach-front property as part of his inheritance.

In property and casualty insurance, insurable interest is defined as the right of a person or entity to property in that such a loss to that property would cause a direct monetary loss to the person or entity. Which of the following statements is TRUE regarding insurable interest in property and casualty insurance?

If the insured has not insurable interest, the contract is void.

Which of the following is a characteristic of a purchasing group?

It purchases liability insurance covering all members on a group basis

Risk retention groups are prohibited from engaging in all of the following types of insurance, EXCEPT...

Liability

When an insurer cancels an automobile insurance policy for a reason other than nonpayment of premium, the insurer must meet all of the following requirements EXCEPT...

Offer the insured to renew the policy at a different rate.

A risk retention group must include which of the following words in its name?

Risk retention group

Which of the following information would NOT be included in property insurance policies?

The insured's address

A policy that expresses an agreement that the thing insured will be valued at a specified sum is what kind of policy?

Valued

A type of policy that is used to provide a specific amount of replacement cost for a given risk after it has been destroyed is called a(n)...

Valued policy

An insurer cancels an insurance policy. Within what period of time must a premium refund be issued?

Within 25 days