P-II.C · Classes of Property Insurance
Surety, credit and burglary classes
Surety (Section 105) guarantees that people behave and that contracts get performed, rather than paying for accidental damage:
105(a): guaranteeing the behavior of persons and the performance of contracts, including bonds and undertakings, such as a contractor's promise to finish a road project.
105(b): loss from forgery or alteration of an instrument or of a signature on it.
Credit (Section 113): insurance of persons engaged in business against loss from extending credit to those dealing with them, and from the failure of persons to meet existing or contemplated obligations to the insured.
Financial guaranty insurance, as defined in Section 12100, may not be written as surety insurance (Section 105(d)) or as credit insurance (Section 113).
Burglary (Section 112): loss by burglary or theft. Under 112(b), money, stamps, securities and business records fall in this class when the policy includes loss by burglary or theft and excludes property in the mail or with a carrier for hire.
Remember
· Surety = guarantee behavior or contract performance; forgery is surety too.
· Credit = loss from extending credit.
· Burglary = burglary or theft; money and records count when theft is the focus.
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 ›