CALIFORNIA ADJUSTER TEST QUESTIONS
WITH CORRECT ANSWERS 2026-2027
Business Owner Package (BOP) - CORRECT ANSWER -
bundles property, liability, and income protection in a single package. Sometimes referred to a
s homeowner's insurance for businesses.
Is inflation coverage (guard) feature typically found in a BOP? - CORRECT ANSWER -Yes
What is the value feature in a BOP? - CORRECT ANSWER -Replacement Cost
What are the two basic types of coverage in a Commercial Package Policy? -
CORRECT ANSWER -Liability and Property coverages
What is a surety bond? - CORRECT ANSWER -
A contract establishing liability including at least 3 parties:
1. The PRINCIPALQwho agrees to fulfill an obligation, 2. the OBLIGEE to whom the principal ow
es the obligation, and 3. the SURETY who guarantees to pay the obligee if the principal default
s.
Surety - CORRECT ANSWER -
The party that becomes legally liable for debt, failure or default of another party.
Indemnitor - CORRECT ANSWER -
Fourth party in a surety bond who agrees to reimburse the surety for losses sustained if the p
rincipal defaults.
Limited Cooking and Fast Food Restaurant qualifications for a BOP. - CORRECT 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. - CORRECT 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? - CORRECT 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? -
CORRECT ANSWER -Six stories
Major Sections of a BOP? - CORRECT ANSWER -1. Property
2. Liability
3. Common Policy Conditions
What is the claim form basis used for BOP liability? - CORRECT ANSWER -
The occurrence form is used, covering damages occurring during the policy term, no matter w
hen the claim is filed.
WITH CORRECT ANSWERS 2026-2027
Business Owner Package (BOP) - CORRECT ANSWER -
bundles property, liability, and income protection in a single package. Sometimes referred to a
s homeowner's insurance for businesses.
Is inflation coverage (guard) feature typically found in a BOP? - CORRECT ANSWER -Yes
What is the value feature in a BOP? - CORRECT ANSWER -Replacement Cost
What are the two basic types of coverage in a Commercial Package Policy? -
CORRECT ANSWER -Liability and Property coverages
What is a surety bond? - CORRECT ANSWER -
A contract establishing liability including at least 3 parties:
1. The PRINCIPALQwho agrees to fulfill an obligation, 2. the OBLIGEE to whom the principal ow
es the obligation, and 3. the SURETY who guarantees to pay the obligee if the principal default
s.
Surety - CORRECT ANSWER -
The party that becomes legally liable for debt, failure or default of another party.
Indemnitor - CORRECT ANSWER -
Fourth party in a surety bond who agrees to reimburse the surety for losses sustained if the p
rincipal defaults.
Limited Cooking and Fast Food Restaurant qualifications for a BOP. - CORRECT 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. - CORRECT 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? - CORRECT 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? -
CORRECT ANSWER -Six stories
Major Sections of a BOP? - CORRECT ANSWER -1. Property
2. Liability
3. Common Policy Conditions
What is the claim form basis used for BOP liability? - CORRECT ANSWER -
The occurrence form is used, covering damages occurring during the policy term, no matter w
hen the claim is filed.
