Adjuster (Arizona) Exam Questions with Correct Answers

Adjuster (Arizona) Exam Questions with Correct Answers Commercial property insurance Cancellation - Answer-45 day noticed from insurer. Subrogation - Answer-noun: LAW: the substitution of one person or group by another in respect of a debt or insurance claim, accompanied by the transfer of any associated rights and duties. Coverage A: commercial property - Answer-Building and structures Coverage B: commercial property - Answer-Business & personal property. Coverage C: commercial property - Answer-Personal property of others Commercial Property Common Conditions - Answer-Vacancy: Property closed , or less than 31% occupied, for 60 days. Subrogation: Insurers can sue third parties for damages to the insured. No Benefits to Bailee : Coverage does not apply to a company's property when it is being used by a third party, even with the insured's permission. CP: business income coverage form - Answer-Provides businesses protection for loss of income due to a covered loss. Period of restoration: Time frame within which business income coverage indemnifies the policy holder for loss of income, usually 72 house after the loss up until property is fully restored. Profit and Loss Statement: Determines indemnification for net income. Gross income- operating expenses= net income from operations Business income coverage with extra expenses: Provides both forms of coverage by providing coverage for both loss of income and the costs for getting the business running again. Business income coverage without extra expenses: Also indemnifies for loss of income and for getting a business running but only to the extent that the extra expenses reduce the original loss. Commercial General Liability (CGL) - Answer-Protects a business from a wide variety of financial hazards associated with normal business operations.