Adjuster Exam (Arizona) Practice
Questions All Solved Correct Graded
A+.
Commercial Automobile Insurance Procedure (Arizona) - Answer Similarly, high-risk
commercial consumers who have trouble finding automobile insurance in the voluntary market
may find coverage through the Commercial Automobile Insurance Plan (CAIP). Coverages
available under CAIP are more limited than those available to drivers of private passenger
vehicles. Under this plan, commercial consumers may only obtain Bodily Injury and Property
Damage Liability with basic limits, unless higher limits are required by law. Physical Damage
Coverage is only available for light pick-up trucks and motorcycles. Like private drivers,
commercial drivers apply for this coverage through the WAAIP.
Coverage E (HO) - Answer Personal Liability-
Pays for bodily injury and property damage to third party.
Applies even if the insured property causes a third party damages. never pays the insured.
100,000 min coverage.
Coverage F (HO) - Answer Medical Payments- No fault coverage.
Medical expenses incurred by third party due to an accident on insured premises. Only
necessary, reasonable medical charges.
1000 minimum limit.
Additional Coverages section 2 (HO) - Answer Property to others
First Aid
Claim Expenses
Loss Assessment
Limited Fungi, Wet or Dry Rot, or Bacteria Coverage - Answer This endorsement defines
fungi as "any type or form of fungus, including mold or mildew, and any mycotoxins, spores,
scents or byproducts produced or released by fungi."
It also provides a specified amount of additional coverage for loss caused by fungi.
This liability coverage has its own sub-limit within the total Coverage E limit.
Home Day Care - Answer This endorsement may provide both property and liability coverage
as long as the business is conducted by the insured on their residence premises and scheduled
in the endorsement.
,Watercraft Liability - Answer Specifically, this endorsement is intended for watercraft
powered by motors with more than 25 horsepower and sailing vessels 26 feet or more in length.
This coverage does not apply to watercraft being operated in racing activities (except for sailing
vessels), craft that are being rented to others, or to craft used to carry people for a fee
Dwelling policy - Answer Is for people and business who are not eligible for homeowners
insurance.
Covers property only, not liability
Dwelling vs Homeowners - Answer homeowners insurance requires someone to reside at
the property.
Homeowners requires the owner be an actual person.
Dwelling does not require someone to reside
Dwellings can be held by businesses or companies.
Farms are not eligible for either- they must be covered by a farm policy
Dwelling coverage forms - Answer DP-1: basic form
DP-2: broad form
DP-3: special form
DP-1 - Answer Basic form
named peril coverage:
covers only fire, lightning, and internal explosions.
Endorsements:
VMM (Vandalism and malicious mischief)
Extended coverage endorsement : WCSHAVVER
WCSHAVVER - Answer W- windstorm
C- civil Commotion
S- smoke
H- hail
A- aircraft
V- vehicles
V- volcanic eruption
E- external explosion
R- riot
, DP-2 - Answer Same perils as a basic form, with more.
extended form perils (WCHAVVER)
broad form perils such as vandalism, damage by burglars, glass breakage, falling objects, weight
of ice, collapse of building, sudden and accidental tearing apart, freezing, artificial electrical
currents, accidental discharge or overflow of water.
DP-3 - Answer Special Form
if a peril is not excluded, its is covered. ( long list of exclusions- settling, cracking, shrinking,
bulging of patios, foundations, etc.
damage from birds or bugs.
Damage from domestic animals
theft
etc)
Dwelling Coverage A - Answer Principle Dwelling- attached structures, service machinery,
building materials on or next to the dwelling. (not tools or damage to the land itself)
Dwelling Coverage B - Answer Other structures-
APS ( appurtenant physical structures), detached garage, guesthouse, shed, mailbox.
Limit 10% is included as part of coverage A limit.
Dwelling Coverage C - Answer Personal property-
listed property on the policy.
Limit is 10% of coverage C limit.
No additional insurance
Exclusions:
Animals
Vehicles
aircraft
boats
paper and electronic data
credit and debit cards
money
grave markers
water or steam
Questions All Solved Correct Graded
A+.
Commercial Automobile Insurance Procedure (Arizona) - Answer Similarly, high-risk
commercial consumers who have trouble finding automobile insurance in the voluntary market
may find coverage through the Commercial Automobile Insurance Plan (CAIP). Coverages
available under CAIP are more limited than those available to drivers of private passenger
vehicles. Under this plan, commercial consumers may only obtain Bodily Injury and Property
Damage Liability with basic limits, unless higher limits are required by law. Physical Damage
Coverage is only available for light pick-up trucks and motorcycles. Like private drivers,
commercial drivers apply for this coverage through the WAAIP.
Coverage E (HO) - Answer Personal Liability-
Pays for bodily injury and property damage to third party.
Applies even if the insured property causes a third party damages. never pays the insured.
100,000 min coverage.
Coverage F (HO) - Answer Medical Payments- No fault coverage.
Medical expenses incurred by third party due to an accident on insured premises. Only
necessary, reasonable medical charges.
1000 minimum limit.
Additional Coverages section 2 (HO) - Answer Property to others
First Aid
Claim Expenses
Loss Assessment
Limited Fungi, Wet or Dry Rot, or Bacteria Coverage - Answer This endorsement defines
fungi as "any type or form of fungus, including mold or mildew, and any mycotoxins, spores,
scents or byproducts produced or released by fungi."
It also provides a specified amount of additional coverage for loss caused by fungi.
This liability coverage has its own sub-limit within the total Coverage E limit.
Home Day Care - Answer This endorsement may provide both property and liability coverage
as long as the business is conducted by the insured on their residence premises and scheduled
in the endorsement.
,Watercraft Liability - Answer Specifically, this endorsement is intended for watercraft
powered by motors with more than 25 horsepower and sailing vessels 26 feet or more in length.
This coverage does not apply to watercraft being operated in racing activities (except for sailing
vessels), craft that are being rented to others, or to craft used to carry people for a fee
Dwelling policy - Answer Is for people and business who are not eligible for homeowners
insurance.
Covers property only, not liability
Dwelling vs Homeowners - Answer homeowners insurance requires someone to reside at
the property.
Homeowners requires the owner be an actual person.
Dwelling does not require someone to reside
Dwellings can be held by businesses or companies.
Farms are not eligible for either- they must be covered by a farm policy
Dwelling coverage forms - Answer DP-1: basic form
DP-2: broad form
DP-3: special form
DP-1 - Answer Basic form
named peril coverage:
covers only fire, lightning, and internal explosions.
Endorsements:
VMM (Vandalism and malicious mischief)
Extended coverage endorsement : WCSHAVVER
WCSHAVVER - Answer W- windstorm
C- civil Commotion
S- smoke
H- hail
A- aircraft
V- vehicles
V- volcanic eruption
E- external explosion
R- riot
, DP-2 - Answer Same perils as a basic form, with more.
extended form perils (WCHAVVER)
broad form perils such as vandalism, damage by burglars, glass breakage, falling objects, weight
of ice, collapse of building, sudden and accidental tearing apart, freezing, artificial electrical
currents, accidental discharge or overflow of water.
DP-3 - Answer Special Form
if a peril is not excluded, its is covered. ( long list of exclusions- settling, cracking, shrinking,
bulging of patios, foundations, etc.
damage from birds or bugs.
Damage from domestic animals
theft
etc)
Dwelling Coverage A - Answer Principle Dwelling- attached structures, service machinery,
building materials on or next to the dwelling. (not tools or damage to the land itself)
Dwelling Coverage B - Answer Other structures-
APS ( appurtenant physical structures), detached garage, guesthouse, shed, mailbox.
Limit 10% is included as part of coverage A limit.
Dwelling Coverage C - Answer Personal property-
listed property on the policy.
Limit is 10% of coverage C limit.
No additional insurance
Exclusions:
Animals
Vehicles
aircraft
boats
paper and electronic data
credit and debit cards
money
grave markers
water or steam
