When an insurer offers a new or renewal residential property policy, California law requires it to offer earthquake coverage through:
a.A separate mandatory offer of earthquake insurance
b.A surplus lines broker only
c.An automatic endorsement included at no charge
d.The federal flood insurance program
Explanation
Section 10086 of the Mandatory Earthquake Insurance Offer Law requires every residential property insurer to offer earthquake coverage at the time it issues or renews a homeowners policy. The offer must be written and may be accepted or declined; coverage is not bundled automatically, and surplus lines and the federal NFIP do not satisfy the requirement.
Law Reference: Cal. Ins. Code §10086This topic, taught in full in the California Property & Casualty Broker-Agent guide. California Property & Casualty Broker-Agent Study Guide — 2026 Edition — PDF + EPUB, $24.99 · 14-day refund →
Practice all 531 questions free — no signup required.
Own the complete California Property & Casualty Broker-Agent guide — PDF + EPUB, $24.99 →
Related questions on this topic
- Which is a core statutory power of the California Insurance Commissioner?
- An applicant wants to buy a fire policy on a beachfront cottage. The policy will be valid only if the applicant has insurable interest. Insurable interest in property must exist:
- An insurer that decides not to renew a personal lines property policy must mail the named insured written notice of non-renewal at least how many days before expiration?
- Under Proposition 103, before a property and casualty insurer may use a new rate in California, the rate must be:
- An insurer routinely tells claimants that policy benefits are lower than they actually are, hoping to settle for less. Under §790.03(h), this conduct is best classified as:
- A friend offers to sell a homeowners policy on the side without ever applying for a license. Under §1631, transacting insurance without a license:
Last reviewed: · editorial process
PrepPass team · Verified against California Property & Casualty Insurance License Exam · How we review