California Insurance Code, Division 2 Part 1 -- Fire and Marine Insurance

What this document is

California Insurance Code, Division 2 Part 1 -- Fire and Marine Insurance: chs. 1 (The Marine Contract), 2 (The Fire Insurance Contract), 8.5 (Earthquake Insurance), 8.6 (California Earthquake Authority), 8.9 (Insurance Mediation), 9 (Basic Property Insurance Inspection and Placement Plan -- the FAIR Plan), 10 (California Residential Property Insurance Disclosure) and 11 (Small Business Guide to Commercial Insurance), each complete (Secs. 1880-10108.1) is a state statute published by California Legislative Counsel (leginfo.legislature.ca.gov). It is one of the California documents that insurance license exam questions are written from, including california property & casualty, california personal lines, 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.

• Cal. Ins. Code § 2051.5(a)(1) (Measure of indemnity, replacement cost)

  “Under an open policy that requires payment of the replacement cost for a loss, the measure of indemnity is the amount that it would cost the insured to repair, rebuild, or replace the thing lost or injured, without a deduction for physical depreciation, or the policy limit, whichever is less.”

• Cal. Ins. Code § 2062 (Grace period for premium payment during a state of emergency)

  “In the event of a state of emergency, as defined in Section 8558 of the Government Code, an insurer shall offer a 60-day grace period for payment of premiums for residential property insurance policies covering a property located within the affected area defined in the state of emergency for a...”

• Cal. Ins. Code § 10091(c)(1) (FAIR Plan; definition of “basic property insurance”)

  ““Basic property insurance” means insurance against direct loss to real or tangible personal property at a fixed location in those geographic or urban areas, as designated by the commissioner, from perils insured under the standard fire policy and extended coverage endorsement, from vandalism and...”

• Cal. Ins. Code § 10103(a) (Residential property insurance; required declarations page information)

  “A policy of residential property insurance shall not be issued or renewed in this state unless it provides the following information on the declarations page of the policy: (1) The limits of liability for the structure. (2) The following statement regarding the valuation of the structure: “The...”

• Cal. Ins. Code § 10108(c) (Small business pamphlet; required content)

  “The pamphlet shall provide information on the key features of commercial property insurance and recommend steps for purchasing this insurance. The pamphlet shall include, but not be limited to, providing information on the following: (1) Various types of commercial insurance. (2) Limits of...”

• Cal. Ins. Code § 10085 (Earthquake coverage offer; conclusive presumption of non-acceptance after proof of mailing)

  “If the insurer establishes proof of mailing or delivery of the required offer and the offer of earthquake coverage is not accepted by the named insured within 30 days from the date of mailing or delivery of the offer, there shall be a conclusive presumption that the named insured elected not to...”

• Cal. Ins. Code § 10093(a) (FAIR Plan; right to a property inspection after diligent effort)

  “Any person having an insurable interest in real or tangible personal property who, after diligent effort, has been unable to obtain basic property insurance through normal channels from an admitted insurer or a licensed surplus line broker, shall be entitled upon application to the facility to an...”

• Cal. Ins. Code § 10095.5(b) (FAIR Plan; agent or broker duty to assist an applicant)

  “An insurance agent or broker transacting basic property insurance shall assist a person seeking his or her help in obtaining basic property insurance coverage by any one of the following methods: (1) Making an application for insurance through the plan by submitting an application at the person’s...”

• Cal. Ins. Code § 10096(1) (FAIR Plan; appeal from the governing committee to the commissioner)

  “Any applicant or affected insurer shall have the right of appeal from any act or decision of either the facility or the association to the governing committee. A decision of the committee may be appealed to the commissioner within 30 days after such decision.”

• Cal. Ins. Code § 10103.7(b)(1) (Residential property insurance; state-of-emergency contents advance payment)

  “In the event of a covered total loss of a primary dwelling under a residential property insurance policy resulting from a state of emergency, as defined in Section 8558 of the Government Code, if the residence was furnished at the time of the loss, the insurer shall offer a payment under the...”

• Cal. Ins. Code § 10103(c) (Residential property insurance; minimum building code upgrade coverage on an open replacement-cost policy)

  “An open policy of residential property insurance that provides replacement cost coverage shall not be issued or renewed unless it provides additional building code upgrade coverage of no less than 10 percent of the dwelling coverage policy limits. The building code upgrade coverage required by this...”

• Cal. Ins. Code § 2097(c) (Safer from Wildfires regulations; rulemaking trigger after publishing final list)

  “If the department makes public a final list of building hardening measures for property-level mitigation efforts and communitywide wildfire mitigation programs to be included in the list of building hardening measures identified in the Safer from Wildfires regulations pursuant to subparagraph (C)...”

Practice this material

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