California Department of Insurance

What this document is

California Department of Insurance - Commercial Insurance Guide (Form 700 Revised June 14, 2024: commercial property, crime, CGL, commercial umbrella, workers compensation, BOP, package policies) is a reference published by California Department of Insurance (www.insurance.ca.gov). It is one of the California documents that insurance license exam questions are written from, including california property & casualty, california claims adjuster practice questions. This page summarizes it and points to the official version, which is the text to rely on.

Sections cited in practice questions

Each practice answer shows the exact passage it comes from. These are sections of this document that questions cite, with a short excerpt from the source text.

• CDI, Commercial Insurance Guide, Form 700 (Commercial Umbrella)

  “Commercial automobile, CGL, workers compensation, or any liability policy can be covered by a commercial umbrella.”

• CDI, Commercial Insurance Guide, Form 700 (Commercial Property, Valuation Types)

  “Agreed value waives any coinsurance penalty and pays 100% of the stated amount (agreed upon amount) for any covered loss.”

• CDI, Commercial Insurance Guide, Form 700 (Coverage Forms and Endorsements, Builder's Risk)

  “Cancellation is allowed on a pro rata basis upon project completion; however, midterm cancellation will result in a short rate penalty.”

• CDI, Commercial Insurance Guide, Form 700 (What Is a Business Owners Policy?)

  “Designed specifically for small businesses, a Business Owners Policy (BOP) is a combination commercial policy that covers property, general liability and business interruption.”

• CDI, Commercial Insurance Guide, Form 700 (Property Insurance)

  “Commercial Property, Inland Marine, Boiler and Machinery, and Crime are the most common commercial property coverage lines.”

• CDI, Commercial Insurance Guide, Form 700 (Workers Compensation, Coverage Sections)

  “In employers liability part two, the employer is protected against situations where an employee can sue for injuries suffered under common law liability (i.e., consequential bodily injury, loss of consortium, dual capacity, or third party over actions).”

• CDI, Commercial Insurance Guide, Form 700 (Workers Compensation, Classification and Rating)

  “Classification of workers compensation insurance is based upon the specific duties that your employees perform in the course of their employment with your company.”

• CDI, Commercial Insurance Guide, Form 700 (Crime)

  “Crime insurance provides protection for the assets of your business including merchandise for sale, real property, money and securities. It is considered a property insurance line.”

• CDI, Commercial Insurance Guide, Form 700 (Boiler and Machinery)

  “Machinery coverage also includes major machinery systems common to most commercial buildings, such as heating, ventilating and air conditioning systems. Since most commercial property policies exclude losses from boilers and machinery, it is important to be aware of any exposure your business may...”

• CDI, Commercial Insurance Guide, Form 700 (Commercial Property, Coverage Forms and Endorsements: Time Element)

  “Time Element – Insurance that covers other losses stemming from a direct loss by a covered peril to business property. Business interruption, extra expense, and loss of rents and rental value are the most common time element coverages.”

• CDI, Commercial Insurance Guide, Form 700 (Commercial Property, Coverage Forms and Endorsements: Legal Liability)

  “Covers your legal liability for loss or damage to real and personal property of others as the result of your negligent acts and/or omissions. The loss or damage must be caused by a covered peril (including loss of use). The loss must be accidental and the coverage most often is purchased for...”

• CDI, Commercial Insurance Guide, Form 700 (Workers Compensation)

  “Workers compensation is based on a no-fault system, which means that an injured employee does not need to prove that the injury or illness was someone else’s fault in order to receive workers compensation benefits for an on-the-job injury or illness.”

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Questions about this source

More California sources

• California Accident and Health Agent Examination Educational ObjectivesCandidate handbook or exam outline
• California Casualty License Examination ObjectivesCandidate handbook or exam outline
• California Life-Only Agent Examination Educational ObjectivesCandidate handbook or exam outline
• California Personal Lines License Examination ObjectivesCandidate handbook or exam outline
• California Property License Examination ObjectivesCandidate handbook or exam outline
• Cal. Ins. Code s. 790.03: Unfair methods of competition and unfair or deceptive acts definedState statute
• Cal. Ins. Code s. 1668: Grounds for license denial, suspension, or revocationState statute
• Cal. Ins. Code ss. 10350.2-10350.3: Individual disability policy required provisionsState statute