California
Adjuster Test
QUESTIONS &
CORRECT
SOLUTIONS(20
, 24 LATEST
UPDATE)
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
Adjuster Test
QUESTIONS &
CORRECT
SOLUTIONS(20
, 24 LATEST
UPDATE)
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
