California Adjuster Exam Prep Questions with CORRECT Answers (Grade A+)

California Adjuster Exam Prep Questions with
CORRECT Answers (Grade A+)

Question 1:
The process where by a mutual insurer becomes a stock company is called
Answer:
Demutualization

Question 2:
The process whereby a stock company a mutual insurer is called
Answer:
Mutualization

Question 3:
The provision in a property policy which states that the insured has been paid up to their insurable
interest is
Answer:
Valuation clause

Question 4:
The part of the policy that states the amount of coverage the insured property policy period is
Answer:
Declaration

Question 5:
Part of the policy that establishes limits upon the insurer and the insured with the insurance policy
Answer:
Conditions

Question 6:
Which are the characteristics of negligence
Answer:
Duty, breach, proximate cause, damages

,Question 7:
Which of the following is not a federal program
Answer:
Worker' compensation

Question 8:
Absolute risk(liability) is imposed
Answer:
When there is negligence whether proven or not

Question 9:
X is in an accident with Y. X suffers $5000 of damage but it is determined that X is 60% responsible
for the accident. How much would X receive under CONTRIBUTORY negligence rules?
Answer:
$0

Question 10:
what of the following is not considered an intentional tort?
Answer:
Auto accident

Question 11:
Which of the following statements is true regarding compensatory damages?
Answer:
There is usually no direct correlation between the amount of general and special damages awarded to
the victim

Question 12:
The insurer decides not to renew an insured's personal auto policy. How much notice must the insurer
provide to the insured
Answer:
30 days

, Question 13:
an insured's loss reserve for a claim is an estimate of the amount insurer will pay for present and future
loss, which of the following is an example of loss prevention
Answer:
a homeowner decides not to install a pool in the backyard

Question 14:
which of the following describes the act of making a false entry in any book statement of report of any
insurer with the intent to device any examiner lawfully appointed to examine the insured's
Answer:
an unfair practice

Question 15:
a person can base his/her claim for liability on the basis of all of the following EXCEPT
Answer:
breach of liability

Question 16:
the term "assignment" refers to
Answer:
the transfer of the insured's interest in a policy to another party

Question 17:
the term "subrogation" refers to
Answer:
the insured's right to recover payment from a responsible 3rd party

Question 18:
insurer's right to recover the payment of the claim after they paid the insured for their property losses a
negligent 3rd party is know as,
Answer:
subrogation