CA Adjusters license (Latest 2026/ 2027
Update) 100% Verified Questions &
Answers {Grade A}
Which of the following dwelling forms provides coverage for loss of rental income?
- The Basic, Broad and Special Form
- The Basic and Broad Forms only
- The Broad and Special Forms only
- The Special Form only - correct answer The correct answer is: The Basic, Broad and
Special Form.
EXPLANATION:
All of the forms provide for rental value coverage. In the DP-2 and DP-3, it is 20% of
the Coverage A limit and is additional coverage. With the DP-1, the 20% coverage
reduces the available Coverage A amount on the dwelling. (Note: in North Carolina
the percentage is 10%.)
Which of the following can be categorized as liability doctrines?
Vicarious
Res Ipsa Loquitur
Strict
All of the Responses are Correct - correct answer The correct answer is: All of the
Responses are Correct.
EXPLANATION:
, CA Adjusters license (Latest 2026/ 2027
Update) 100% Verified Questions &
Answers {Grade A}
All of these terms can be categorized a liability doctrines. Res Ipsa Loquitur means
"the thing speaks for itself."
Under an HO-3 form materials and supplies to be used in construction, alteration or
repair of the structure and kept next to the residence premises are covered:
If they have been at the location more than 30 days.
If they have been at the location less than 30 days.
Only if they are lost due to an insured peril.
Only if they are lost due to fire. - correct answer The correct answer is: Only if they
are lost due to an insured peril.
The items would be covered if destroyed by an insured peril. Note that the items
must either be on the insured's residence premises or next to the residence premises
such as in a neighbor's garage.
Under an Equipment Breakdown Protection policy with $500,000 in coverage, a
covered "accident" resulted in the following:
I. $500,000 worth of damage to the property.
II. $10,000 damage to the property of another in the insured's care.
III. $5,000 in legal fees to defend the insured in this case.
, CA Adjusters license (Latest 2026/ 2027
Update) 100% Verified Questions &
Answers {Grade A}
The policy will pay a total of:
$505,000.
$500,000.
$510,000.
$515,000. - correct answer The correct answer is: $505,000.
EXPLANATION:
The maximum that can be paid is the limit of the policy. Legal expenses are in
addition to the limit of coverage.
The insured is insured under a DP-3 dwelling form and is remodeling the dwelling. He
does not have a place to store the materials. His next door neighbor permits the
insured to store the materials in his garage. The garage is destroyed by fire and the
materials are also destroyed. Which of the following applies?
- The policy has a special limit under an extension of coverage that applies.
- Coverage is included under the building coverage and would apply since the
materials are next to the insured's premises.
- The policy would not pay the claim since the materials were off the insured's
residence premises.
, CA Adjusters license (Latest 2026/ 2027
Update) 100% Verified Questions &
Answers {Grade A}
- The materials must be in an enclosed structure for coverage to apply. - correct
answer The correct answer is: Coverage is included under the building coverage and
would apply since the materials are next to the insured's premises.
EXPLANATION:
The policy would respond to pay the loss because the policy covers building materials
located on or next to the insured premises.
All of the following are necessary for Liability coverage to apply under the PAP,
except:
The insured must not have been drinking.
The person liable must be an insured person.
The insured must be legally liable for the accident.
The damage or injury must be the result of an auto accident. - correct answer The
correct answer is: The insured must not have been drinking.
It is not necessary that the insured not have been drinking alcohol at the time of the
accident. Coverage would still apply.
Under an equipment dealer's form, which of the following would not be covered?
Inventory
Serviced items
Customer's property on the insured's premises
Update) 100% Verified Questions &
Answers {Grade A}
Which of the following dwelling forms provides coverage for loss of rental income?
- The Basic, Broad and Special Form
- The Basic and Broad Forms only
- The Broad and Special Forms only
- The Special Form only - correct answer The correct answer is: The Basic, Broad and
Special Form.
EXPLANATION:
All of the forms provide for rental value coverage. In the DP-2 and DP-3, it is 20% of
the Coverage A limit and is additional coverage. With the DP-1, the 20% coverage
reduces the available Coverage A amount on the dwelling. (Note: in North Carolina
the percentage is 10%.)
Which of the following can be categorized as liability doctrines?
Vicarious
Res Ipsa Loquitur
Strict
All of the Responses are Correct - correct answer The correct answer is: All of the
Responses are Correct.
EXPLANATION:
, CA Adjusters license (Latest 2026/ 2027
Update) 100% Verified Questions &
Answers {Grade A}
All of these terms can be categorized a liability doctrines. Res Ipsa Loquitur means
"the thing speaks for itself."
Under an HO-3 form materials and supplies to be used in construction, alteration or
repair of the structure and kept next to the residence premises are covered:
If they have been at the location more than 30 days.
If they have been at the location less than 30 days.
Only if they are lost due to an insured peril.
Only if they are lost due to fire. - correct answer The correct answer is: Only if they
are lost due to an insured peril.
The items would be covered if destroyed by an insured peril. Note that the items
must either be on the insured's residence premises or next to the residence premises
such as in a neighbor's garage.
Under an Equipment Breakdown Protection policy with $500,000 in coverage, a
covered "accident" resulted in the following:
I. $500,000 worth of damage to the property.
II. $10,000 damage to the property of another in the insured's care.
III. $5,000 in legal fees to defend the insured in this case.
, CA Adjusters license (Latest 2026/ 2027
Update) 100% Verified Questions &
Answers {Grade A}
The policy will pay a total of:
$505,000.
$500,000.
$510,000.
$515,000. - correct answer The correct answer is: $505,000.
EXPLANATION:
The maximum that can be paid is the limit of the policy. Legal expenses are in
addition to the limit of coverage.
The insured is insured under a DP-3 dwelling form and is remodeling the dwelling. He
does not have a place to store the materials. His next door neighbor permits the
insured to store the materials in his garage. The garage is destroyed by fire and the
materials are also destroyed. Which of the following applies?
- The policy has a special limit under an extension of coverage that applies.
- Coverage is included under the building coverage and would apply since the
materials are next to the insured's premises.
- The policy would not pay the claim since the materials were off the insured's
residence premises.
, CA Adjusters license (Latest 2026/ 2027
Update) 100% Verified Questions &
Answers {Grade A}
- The materials must be in an enclosed structure for coverage to apply. - correct
answer The correct answer is: Coverage is included under the building coverage and
would apply since the materials are next to the insured's premises.
EXPLANATION:
The policy would respond to pay the loss because the policy covers building materials
located on or next to the insured premises.
All of the following are necessary for Liability coverage to apply under the PAP,
except:
The insured must not have been drinking.
The person liable must be an insured person.
The insured must be legally liable for the accident.
The damage or injury must be the result of an auto accident. - correct answer The
correct answer is: The insured must not have been drinking.
It is not necessary that the insured not have been drinking alcohol at the time of the
accident. Coverage would still apply.
Under an equipment dealer's form, which of the following would not be covered?
Inventory
Serviced items
Customer's property on the insured's premises
