California Adjuster Test Exam Questions and Answers
Grade A+
Business Owner Package (BOP) - Answer-bundles property, liability, and income
protection in a single package. Sometimes referred to as homeowner's insurance
for businesses.
Is inflation coverage (guard) feature typically found in a BOP? - Answer-Yes
What is the value feature in a BOP? - Answer-Replacement Cost
What are the two basic types of coverage in a Commercial Package Policy? -
Answer-Liability and Property coverages
What is a surety bond? - Answer-A contract establishing liability including at least
3 parties:
1. The PRINCIPAL who agrees to fulfill an obligation, 2. the OBLIGEE to whom the
principal owes the obligation, and 3. the SURETY who guarantees to pay the
obligee if the principal defaults.
Surety - Answer-The party that becomes legally liable for debt, failure or default of
another party.
Indemnitor - Answer-Fourth party in a surety bond who agrees to reimburse the
surety for losses sustained if the principal defaults.
Limited Cooking and Fast Food Restaurant qualifications for a BOP. - Answer-1.
7,500 sq. ft. or fewer
2. Max seating of 75 for limited cooking and 150 for fast food
3. Beer and wine sales no more than 25% annual income
4. No liquor sales
5. Has Maintenance of fire extinguishing equipment
Self Storage Facilities qualifications for a BOP. - Answer-1. Maximum of two stories
, 2. No storage of pollutants, waste, chemicals, or industrial materials.
What types of businesses are NOT qualified for a BOP? - Answer-1. Car
dealerships, service stations, repair shops
2. Parking lots, garages
3. Amusement parks
4. Bars, nightclubs, and the like
5. Banks and similar institutions
6. Manufacturing and servicing businesses (except those specifically eligible)
7. Condominium associations (except residential and office).
What is the maximum stories for an office building to be eligible for a BOP? -
Answer-Six stories
Major Sections of a BOP? - Answer-1. Property
2. Liability
3. Common Policy Conditions
What is the claim form basis used for BOP liability? - Answer-The occurrence form
is used, covering damages occurring during the policy term, no matter when the
claim is filed.
In a BOP, what is the General Aggregate Limit in relation to the per occurrence
limit? - Answer-The General Aggregate Limit is twice the per occurrence limit.
The Business Owners Policy is ... - Answer-a type of Commercial Package Policy
(CPP) for small to medium sized businesses integrating multiple lines of insurance
into one insurance package.
In a BOP policy with protective systems, if the system becomes inoperative the
insured must notify the insurance company within ... - Answer-48 hours, or the
coverage will be suspended and possibly denied.
Grade A+
Business Owner Package (BOP) - Answer-bundles property, liability, and income
protection in a single package. Sometimes referred to as homeowner's insurance
for businesses.
Is inflation coverage (guard) feature typically found in a BOP? - Answer-Yes
What is the value feature in a BOP? - Answer-Replacement Cost
What are the two basic types of coverage in a Commercial Package Policy? -
Answer-Liability and Property coverages
What is a surety bond? - Answer-A contract establishing liability including at least
3 parties:
1. The PRINCIPAL who agrees to fulfill an obligation, 2. the OBLIGEE to whom the
principal owes the obligation, and 3. the SURETY who guarantees to pay the
obligee if the principal defaults.
Surety - Answer-The party that becomes legally liable for debt, failure or default of
another party.
Indemnitor - Answer-Fourth party in a surety bond who agrees to reimburse the
surety for losses sustained if the principal defaults.
Limited Cooking and Fast Food Restaurant qualifications for a BOP. - Answer-1.
7,500 sq. ft. or fewer
2. Max seating of 75 for limited cooking and 150 for fast food
3. Beer and wine sales no more than 25% annual income
4. No liquor sales
5. Has Maintenance of fire extinguishing equipment
Self Storage Facilities qualifications for a BOP. - Answer-1. Maximum of two stories
, 2. No storage of pollutants, waste, chemicals, or industrial materials.
What types of businesses are NOT qualified for a BOP? - Answer-1. Car
dealerships, service stations, repair shops
2. Parking lots, garages
3. Amusement parks
4. Bars, nightclubs, and the like
5. Banks and similar institutions
6. Manufacturing and servicing businesses (except those specifically eligible)
7. Condominium associations (except residential and office).
What is the maximum stories for an office building to be eligible for a BOP? -
Answer-Six stories
Major Sections of a BOP? - Answer-1. Property
2. Liability
3. Common Policy Conditions
What is the claim form basis used for BOP liability? - Answer-The occurrence form
is used, covering damages occurring during the policy term, no matter when the
claim is filed.
In a BOP, what is the General Aggregate Limit in relation to the per occurrence
limit? - Answer-The General Aggregate Limit is twice the per occurrence limit.
The Business Owners Policy is ... - Answer-a type of Commercial Package Policy
(CPP) for small to medium sized businesses integrating multiple lines of insurance
into one insurance package.
In a BOP policy with protective systems, if the system becomes inoperative the
insured must notify the insurance company within ... - Answer-48 hours, or the
coverage will be suspended and possibly denied.
