CA Insurance Regulations: Key Concepts

A party to a contract has rights to damages for breach, reasonable attorney fees, and costs if the other party is found in breach.

In California, a rate cannot remain in effect if it's considered anything other than impartial.

"Loss sustained" coverage pays for losses during the policy period, discovered up to a year after policy termination.

An insurer accepting an application from a non-appointed agent and issuing a policy must forward an appointment notice to the commissioner within 14 days of receiving the application.

If an insured borrows a neighbor's vehicle and causes an accident, the neighbor's policy is primary, and the driver's policy is excess.

Equipment dealer's coverage excludes motor vehicles designed for highway use.

Acting as a producer for a non-admitted carrier violates the CA Insurance Code unless the producer is a surplus line broker.

Under a scheduled personal property endorsement, stamp losses are excluded when shipped via freight company.

A well-maintained dwelling in a hazardous brush area is more likely to be eligible for the CA FAIR Plan.

The number of listed drivers is not a principal rating factor under Proposition 103 for personal auto policies.

An umbrella policy offers broad excess liability coverage beyond primary policies.

Vicarious liability may hold employers liable for an employee's negligent operation of a vehicle while working.

Collapse is insured against in the Special form but not the Basic Form.

Claims-made commercial liability policies cover bodily injury or property damage occurring or discovered during the policy period.

Coverage for robbery of an insured's bank deposit from an armored car requires outside the premises-theft of money and securities insurance.

Business losses from death, retirement, resignation, or disability of a key employee are personnel loss exposures.

A medical expense plan covering a hospital visit for hernia repair is known as a basic medical plan.

Actual cash value is the replacement cost of damaged property, less depreciation.

If an insured rents an auto while on vacation, the personal auto policy provides the broadest coverage for any auto shown in the declarations.

Fire and casualty agents must inform insureds of conditions precedent to coverage regarding a personal auto policy at the time of application.

If an insured with a personal auto policy has an accident in a state with Personal Injury Protection (PIP), the coverage automatically broadens to provide PIP.

Losses that are catastrophic are not characteristics of an "ideally insurable loss exposure".

Liability coverage in a yacht policy is referred to as protection and indemnity.

The personal auto policy territory limits include Montreal, Canada.

Collision coverage in a personal auto policy covers damages caused by driving into a tree that fell during a storm.

Falling objects are included in the broad form, but not in the basic form.

A discovery crime policy pays for losses found during the policy period, even if they occurred before the policy's effective date.

Section II of a homeowner's policy does not cover a registered licensed personal auto while used on the insured's property, including undeveloped land.

Umbrella policies do not have a standard coverage form.

If Max borrows his neighbor's car, which only has liability coverage, and causes an accident, Max's PAP provides excess liability coverage and primary collision coverage.

The personal auto policy towing and labor endorsement pays for the cost of labor only if it is performed at the place of disablement.

A California personal auto policy will automatically provide the highest required limits at no extra charge, if an accident occurs in a state with higher financial responsibility limits.

In California, a rate cannot remain in effect if it's considered anything other than impartial.

A pickup or van with a gross vehicle weight of 9,500 lbs. may be eligible for a personal policy if it was used in the business of farming or ranching.

Insureds have 60 days to report a claim that occurred during the policy period with an unendorsed claim made general liability policy.

If there is $1,300 worth of damage to to an insured's car, with $520 deductible Collision coverage and $100 deductible other than Collison coverage, the insurer will pay $1,050 for the damage.

Acting as a producer for a non-admitted carrier violates the CA Insurance Code unless the producer is a surplus line broker.

Under a personal auto policy, only the named insured, resident relatives, and other entities responsible for the auto's use qualify as insureds while using a covered auto.

Under an HO-3 form, if a home is damaged by fire and explosion minutes after an earthquake, the policy covers only the damage caused by the ensuing fire and explosion.

Co-insurance clauses in property policies primarily encourage insureds to purchase coverage near the property's value.

A vehicle owned by a state agency which self-insures its autos is not an uninsured motor vehicle as defined by personal auto policies uninsured motorist coverage.

Insurers may require applicants to maintain underlying auto and liability coverage when purchasing a personal umbrella policy.

Collapse is an additional coverage provided in a DP-3 that is not in a DP-1.

A licensee must deliver the document itself to the commissioner to surrender a license for cancellation.

Under Tort Law, a person can face a claim for legal liability on the basis of all of the following, except Breach of Contract.

Insurance coverage to protect against damage to a shipment of goods on a semi-truck would be found under Inland Marine insurance.

All coverage is in force in the personal auto policy if an insured rents a vehicle while on a two-week vacation in the U.S.

If someone test drives a covered auto at a dealer and causes a crash, the personal auto policy is excess.

Under a personal auto policy, if a newly acquired auto is to replace the covered auto with liability is the lesser of the amount necessary to repair or replace the property or the Actual cash value of the stolen or damaged property.

Under a personal auto policy, if a newly acquired auto is to replace the covered auto with liability coverage only, the insured has 4 Days to request Collison coverage.

Trees, shrubs, and other plants are additional coverages provided by an HO-3 policy.

Boat owner's policies typically provide physical damage, liability, and medical payments coverage.

A personal auto policy requires the insured to notify the police for hit and run accidents and thefts.

Coverage is available under the extended non-owned liability coverage for Liability only.

The HO-2, HO-4, and HO-6 are similar because the perils insured against under coverage C are the same.

Falling objects are included in a DP-2 but not in a DP-1.