I.A · Basic Insurance Concepts and Principles
Classes of insurance in the Insurance Code
Plain version: think of the Insurance Code as a filing cabinet with labeled drawers. Section 100 divides insurance into classes, and Sections 101 through 120 define what goes in each drawer.
The classes listed in §100 include fire, marine, surety, liability, plate glass, sprinkler, and boiler and machinery, among others. Casualty is not on the list, even though it is a common industry term. The narrow-sounding classes, such as plate glass and sprinkler, are the ones candidates tend to doubt, but they are all in the statute.
Definitions that show up on the exam:
Sprinkler (§114): water damage from sprinklers and other fire-extinguishing equipment, and also loss from the breakage or leakage of water pipes.
Marine (§103): navigation, transit, and transportation risks. It is not a catch-all for water losses.
Title (§104): loss from liens or encumbrances on, or defects in, the title to property.
Boiler and machinery (§111): for example, damage from the explosion of a pressure vessel.
Workers' compensation (§109): employees' injuries at work.
Watch the overlaps:
Surety (§105) does not include a default on a loan secured by a mortgage on real estate. That belongs to mortgage guaranty (§119).
Miscellaneous (§120) is the catch-all for any proper subject of insurance not included in the other classes. An open policy that pays a theater producer's loss if a show is cancelled because the lead performer is injured falls here. Disability (§106) is tempting because a person is hurt, but the policy pays the producer's business loss, not benefits for an insured's own injury.
Remember
· §100 divides insurance into classes; §§101–120 define them.
· Casualty is an industry term, not a §100 class.
· Sprinkler includes leaking water pipes; mortgage loan default = mortgage guaranty, not surety.
· Miscellaneous (§120) is the catch-all class.
CA
California Insurance Exam Prep
Bilingual practice for the California insurance license exams.
California Insurance Exam Prep is an independent study aid published by ORIGINAL HEART INC. It is not affiliated with, endorsed by, or connected to the California Department of Insurance (CDI) or PSI Services. All practice questions are original and written from the public CDI examination objectives and California law. They are not actual exam questions. Using this app does not guarantee that you will pass the licensing exam. Laws and exam content change; always check the current CDI Candidate Information Bulletin.
© 2026 ORIGINAL HEART INC
Exam prep classes
Life and real estate license exam prep with experienced instructors.
Learn more ›