CA Adjusters license (Latest 2026/ 2027
Update) 100% Verified Questions &
Answers {Grade A}
Which of the following components MUST be included in the definition of a hostile
fire:
I. Rapid oxidation accompanied by a flame or at least a glow.
II. Must be sudden and unexpected.
III. Must have been intentionally set by the insured.
IV. Must spread beyond its intended place.
I, II and IV only
I, II, III and IV
I and II only
I, III and IV only - correct answer The correct answer is: I, II and IV only.
EXPLANATION:
This definition must include three of the four components expressed here. In
addition, a hostile fire is one that is spread beyond its intended place or a place not
intended for it.
For how long must an adjusting firm maintain its claim files?
For as long as any statute of limitations
For the current year and 10 prior years
For the current year and 4 prior years
, CA Adjusters license (Latest 2026/ 2027
Update) 100% Verified Questions &
Answers {Grade A}
For the current year only - correct answer The correct answer is: For the current year
and 4 prior years.
EXPLANATION:
Per the California DOI, adjusting firms must maintain files for the current policy year
and the preceding four years, at the company's principal place of business.
An adjuster, acting as a fiduciary agent, should do which of the following?
- Not represent interests which are adverse to those of the principal
- All of the responses are correct
- Not seek profit from an outside source as a consequence of actions for and behalf
of the principal
- Act with a high degree of fidelity and loyalty to the interests of the principal -
correct answer The correct answer is: All of the responses are correct .
EXPLANATION:
A fiduciary agent represents a principal, and therefore must place the principal's
financial interests above any other and act with the utmost degree of care to protect
the principal's financial interests.
Which of the following situations would be covered under bodily injury (BI) liability
coverage?
, CA Adjusters license (Latest 2026/ 2027
Update) 100% Verified Questions &
Answers {Grade A}
Physical Impairment
False Arrest
Libel
Suicide - correct answer The correct answer is: Physical Impairment
EXPLANATION:
Libel, slander, and suicide are not covered within the definition of bodily injury.
Physical impairment is a form of bodily injury. Libel and slander are forms of
"personal injury" coverage.
Which of the following is a valid reason to deny coverage or charge a higher
premium for an automobile policy?
Race or religion
Adverse driving history or motor vehicle record
Sexual orientation
Ancestry - correct answer The correct answer is: Adverse driving history or motor
vehicle record
EXPLANATION:
Adverse driving history or motor vehicle record is the only valid reason of those listed
to deny coverage or charge a higher premium.
, CA Adjusters license (Latest 2026/ 2027
Update) 100% Verified Questions &
Answers {Grade A}
Cars driven by Sue Trent and Jim Higgins were involved in an automobile accident.
Ms. Trent's car was a total loss, and she obtained a settlement of $25,000 for her
injuries. Scott Finley, Ms. Trent's passenger, was injured and incurred $6,000 in
medical expenses. Mr. Higgins, the responsible party, carries Bodily Injury coverage
with limits of $15,000 per person and $30,000 per accident, and Property Damage
coverage of $5,000. His policy will pay a maximum of:
$26,000
$29,000
$35,000
$39,000 - correct answer The correct answer is: $26,000
EXPLANATION:
Mr. Higgins' policy will pay a maximum of $26,000.
Which of the following is NOT provided by the farm employers liability and farm
employees medical payments insurance endorsement?
- Payment of statutory workers compensation benefits
- Pays medical payments to an injured farm employee
- Provides employers legal liability coverage where a bodily injury has occurred to an
employee
Update) 100% Verified Questions &
Answers {Grade A}
Which of the following components MUST be included in the definition of a hostile
fire:
I. Rapid oxidation accompanied by a flame or at least a glow.
II. Must be sudden and unexpected.
III. Must have been intentionally set by the insured.
IV. Must spread beyond its intended place.
I, II and IV only
I, II, III and IV
I and II only
I, III and IV only - correct answer The correct answer is: I, II and IV only.
EXPLANATION:
This definition must include three of the four components expressed here. In
addition, a hostile fire is one that is spread beyond its intended place or a place not
intended for it.
For how long must an adjusting firm maintain its claim files?
For as long as any statute of limitations
For the current year and 10 prior years
For the current year and 4 prior years
, CA Adjusters license (Latest 2026/ 2027
Update) 100% Verified Questions &
Answers {Grade A}
For the current year only - correct answer The correct answer is: For the current year
and 4 prior years.
EXPLANATION:
Per the California DOI, adjusting firms must maintain files for the current policy year
and the preceding four years, at the company's principal place of business.
An adjuster, acting as a fiduciary agent, should do which of the following?
- Not represent interests which are adverse to those of the principal
- All of the responses are correct
- Not seek profit from an outside source as a consequence of actions for and behalf
of the principal
- Act with a high degree of fidelity and loyalty to the interests of the principal -
correct answer The correct answer is: All of the responses are correct .
EXPLANATION:
A fiduciary agent represents a principal, and therefore must place the principal's
financial interests above any other and act with the utmost degree of care to protect
the principal's financial interests.
Which of the following situations would be covered under bodily injury (BI) liability
coverage?
, CA Adjusters license (Latest 2026/ 2027
Update) 100% Verified Questions &
Answers {Grade A}
Physical Impairment
False Arrest
Libel
Suicide - correct answer The correct answer is: Physical Impairment
EXPLANATION:
Libel, slander, and suicide are not covered within the definition of bodily injury.
Physical impairment is a form of bodily injury. Libel and slander are forms of
"personal injury" coverage.
Which of the following is a valid reason to deny coverage or charge a higher
premium for an automobile policy?
Race or religion
Adverse driving history or motor vehicle record
Sexual orientation
Ancestry - correct answer The correct answer is: Adverse driving history or motor
vehicle record
EXPLANATION:
Adverse driving history or motor vehicle record is the only valid reason of those listed
to deny coverage or charge a higher premium.
, CA Adjusters license (Latest 2026/ 2027
Update) 100% Verified Questions &
Answers {Grade A}
Cars driven by Sue Trent and Jim Higgins were involved in an automobile accident.
Ms. Trent's car was a total loss, and she obtained a settlement of $25,000 for her
injuries. Scott Finley, Ms. Trent's passenger, was injured and incurred $6,000 in
medical expenses. Mr. Higgins, the responsible party, carries Bodily Injury coverage
with limits of $15,000 per person and $30,000 per accident, and Property Damage
coverage of $5,000. His policy will pay a maximum of:
$26,000
$29,000
$35,000
$39,000 - correct answer The correct answer is: $26,000
EXPLANATION:
Mr. Higgins' policy will pay a maximum of $26,000.
Which of the following is NOT provided by the farm employers liability and farm
employees medical payments insurance endorsement?
- Payment of statutory workers compensation benefits
- Pays medical payments to an injured farm employee
- Provides employers legal liability coverage where a bodily injury has occurred to an
employee
