California Property State Law — California Insurance Law — Property & Casualty Practice Test

This California Insurance Law — Property & Casualty California Property State Law practice set has 35 practice questions based on the official exam materials, each with an instant explanation.

Sample questions

Three questions from the California Property State Law bank with the correct answer and an explanation. The practice quiz above draws 30 questions at random from the same bank.

1. In California, the term "concurrent cause" describes a loss in which:

   • Two perils are involved in the same event but only one of them is covered under the policy — Correct answer
   • Two separate policies each cover the entire loss in full
   • A single covered peril acts entirely alone with no other cause present
   • The insured intentionally causes the loss to collect the policy proceeds

   Explanation: California applies "concurrent cause" where two perils combine in one event and only one is covered (for example, fire following earthquake, or mudslide following wildfire). It is the framework used to decide coverage when a covered and an excluded peril appear together. (Cal. Ins. Code §530, §532; Garvey v. State Farm (1989) 48 Cal.3d 395)

   Handbook: California Property State Law — Concurrent Causation

2. A covered fire breaks out immediately after an earthquake and destroys the home. Under California's efficient-proximate-cause doctrine, how is the loss most likely treated?

   • The predominant covered peril that set the loss in motion controls, so the fire loss may be covered — Correct answer
   • Any involvement of an excluded peril voids the entire claim automatically
   • The insurer pays exactly half because two perils were involved
   • The loss is always denied because earthquake is typically excluded

   Explanation: California follows efficient proximate cause: when perils combine, the predominant covered peril that set the loss in motion controls the coverage determination. "Fire following earthquake" is the specific loss California addresses by statute. (California's efficient-proximate-cause doctrine: Cal. Ins. Code §530 and §532, per Garvey v. State Farm (1989) 48 Cal.3d 395; fire following earthquake is specifically addressed by §10088.5.)

   Handbook: California Property State Law — Efficient Proximate Cause

3. Which pairing is a classic California example of a concurrent-cause loss where a covered peril follows an excluded one?

   • Mudslide following a wildfire — Correct answer
   • Theft following a burglary alarm failure
   • Freezing of pipes following a power outage
   • Vandalism following a tenant's eviction

   Explanation: "Mudslide following wildfire" is one of the two textbook examples California uses for concurrent causation, alongside "fire following earthquake." The efficient-proximate-cause analysis then decides which peril controls. (Cal. Ins. Code §530, §532; Garvey v. State Farm (1989) 48 Cal.3d 395)

   Handbook: California Property State Law — Concurrent Causation Examples