#1
Which of the following is a primary type of California Property Insurance?
Homeowners Insurance
ExplanationCoverage for residential properties, providing protection against various risks like fire, theft, and liability.
#2
In California, what is the purpose of the California Earthquake Authority (CEA)?
To provide earthquake insurance directly to consumers
ExplanationA specialized entity offering earthquake insurance directly to individuals in California.
#3
In California, what is the purpose of the California Low Cost Auto Insurance Program (CLCA)?
To offer affordable auto insurance to low-income drivers
ExplanationA program aimed at providing affordable auto insurance options to low-income drivers in California.
#4
In California, what is the minimum liability coverage limit required for auto insurance?
$15,000 for bodily injury per person
ExplanationThe mandated minimum coverage for bodily injury per person in California's auto insurance.
#5
What is the purpose of the California FAIR Plan?
To provide property insurance for high-risk applicants
ExplanationAn insurance program assisting high-risk property owners in obtaining essential coverage.
#6
Which type of property insurance typically covers damage caused by floods in California?
Flood Insurance
ExplanationInsurance specifically designed to cover property damage caused by floods in California.
#7
In California, what does 'Replacement Cost' refer to in property insurance?
The cost to replace damaged property with new property of like kind and quality
ExplanationThe expense of replacing damaged property with new items of similar quality.
#8
What is the role of the California Department of Insurance?
To regulate and oversee the insurance industry in the state
ExplanationRegulatory authority overseeing insurance practices, ensuring compliance and consumer protection.
#9
Which California insurance policy covers damage to a business property due to fire, theft, or vandalism?
Commercial Property Insurance
ExplanationInsurance protecting business properties from perils like fire, theft, and vandalism.