CA Adjusters license Q&A
1. Which of the following dwelling forms provides coverage for loss of
rental income?
- The Basic, Broad and Special Form
- The Basic and Broad Forms only
- The Broad and Special Forms only
- The Special Form only: The correct answer is: The Basic, Broad and
Special Form.
EXPLANATION:
All of the forms provide for rental value coverage. In the DP-2 and DP-3,
it is 20% of the Coverage A limit and is additional coverage. With the
DP-1, the 20% coverage reduces the available Coverage A amount on
the dwelling. (Note: in North Carolina the percentage is 10%.)
2. Which of the following can be categorized as liability doctrines?
Vicarious
Res Ipsa Loquitur
,Strict
All of the Responses are Correct: The correct answer is: All of the
Responses are Correct.
EXPLANATION:
All of these terms can be categorized a liability doctrines. Res Ipsa
Loquitur means "the thing speaks for itself."
3. Under an HO-3 form materials and supplies to be used in construction,
alteration or repair of the structure and kept next to the residence
premises are covered:
If they have been at the location more than 30
days. If they have been at the location less than 30
days. Only if they are lost due to an insured peril.
Only if they are lost due to fire.: The correct answer is: Only if they are lost
due to an insured peril.
The items would be covered if destroyed by an insured peril. Note that
the items must either be on the insured's residence premises or next to
,the residence premises such as in a neighbor's garage.
, 4. Under an Equipment Breakdown Protection policy with $500,000 in
cover- age, a covered "accident" resulted in the following:
I. $500,000 worth of damage to the property.
II. $10,000 damage to the property of another in the insured's care.
III. $5,000 in legal fees to defend the insured in this case.
The policy will pay a total of:
$505,000.
$500,000.
$510,000.
$515,000.: The correct answer is: $505,000.
EXPLANATION:
The maximum that can be paid is the limit of the policy. Legal
expenses are in addition to the limit of coverage.
5. The insured is insured under a DP-3 dwelling form and is remodeling the
dwelling. He does not have a place to store the materials. His next door
neighbor permits the insured to store the materials in his garage. The garage
1. Which of the following dwelling forms provides coverage for loss of
rental income?
- The Basic, Broad and Special Form
- The Basic and Broad Forms only
- The Broad and Special Forms only
- The Special Form only: The correct answer is: The Basic, Broad and
Special Form.
EXPLANATION:
All of the forms provide for rental value coverage. In the DP-2 and DP-3,
it is 20% of the Coverage A limit and is additional coverage. With the
DP-1, the 20% coverage reduces the available Coverage A amount on
the dwelling. (Note: in North Carolina the percentage is 10%.)
2. Which of the following can be categorized as liability doctrines?
Vicarious
Res Ipsa Loquitur
,Strict
All of the Responses are Correct: The correct answer is: All of the
Responses are Correct.
EXPLANATION:
All of these terms can be categorized a liability doctrines. Res Ipsa
Loquitur means "the thing speaks for itself."
3. Under an HO-3 form materials and supplies to be used in construction,
alteration or repair of the structure and kept next to the residence
premises are covered:
If they have been at the location more than 30
days. If they have been at the location less than 30
days. Only if they are lost due to an insured peril.
Only if they are lost due to fire.: The correct answer is: Only if they are lost
due to an insured peril.
The items would be covered if destroyed by an insured peril. Note that
the items must either be on the insured's residence premises or next to
,the residence premises such as in a neighbor's garage.
, 4. Under an Equipment Breakdown Protection policy with $500,000 in
cover- age, a covered "accident" resulted in the following:
I. $500,000 worth of damage to the property.
II. $10,000 damage to the property of another in the insured's care.
III. $5,000 in legal fees to defend the insured in this case.
The policy will pay a total of:
$505,000.
$500,000.
$510,000.
$515,000.: The correct answer is: $505,000.
EXPLANATION:
The maximum that can be paid is the limit of the policy. Legal
expenses are in addition to the limit of coverage.
5. The insured is insured under a DP-3 dwelling form and is remodeling the
dwelling. He does not have a place to store the materials. His next door
neighbor permits the insured to store the materials in his garage. The garage
