CA Adjusters License Questions With
Correct Answers
Which bof bthe bfollowing bdwelling bforms bprovides bcoverage bfor bloss bof brental
bincome?
- bThe bBasic, bBroad band bSpecial bForm b
- bThe bBasic band bBroad bForms bonly b
- bThe bBroad band bSpecial bForms bonly b
- bThe bSpecial bForm bonly b- bcorrect banswers✔✔The bcorrect banswer bis: bThe bBasic,
bBroad band bSpecial bForm.
EXPLANATION:
All bof bthe bforms bprovide bfor brental bvalue bcoverage. bIn bthe bDP-2 band bDP-3, bit bis
b20% bof bthe bCoverage bA blimit band bis badditional bcoverage. bWith bthe bDP-1, bthe
b20% bcoverage breduces bthe bavailable bCoverage bA bamount bon bthe bdwelling. b(Note:
bin bNorth bCarolina bthe bpercentage bis b10%.)
Which bof bthe bfollowing bcan bbe bcategorized bas bliability bdoctrines?
Vicarious b
Res bIpsa bLoquitur b
Strict b
All bof bthe bResponses bare bCorrect b- bcorrect banswers✔✔The bcorrect banswer bis: bAll
bof bthe bResponses bare bCorrect.
EXPLANATION:
All bof bthese bterms bcan bbe bcategorized ba bliability bdoctrines. bRes bIpsa bLoquitur
bmeans b"the bthing bspeaks bfor bitself."
Under ban bHO-3 bform bmaterials band bsupplies bto bbe bused bin bconstruction,
balteration bor brepair bof bthe bstructure band bkept bnext bto bthe bresidence bpremises bare
bcovered:
If bthey bhave bbeen bat bthe blocation bmore bthan b30 bdays. b
If bthey bhave bbeen bat bthe blocation bless bthan b30 bdays. b
Only bif bthey bare blost bdue bto ban binsured bperil. b
,Only bif bthey bare blost bdue bto bfire. b- bcorrect banswers✔✔The bcorrect banswer bis:
bOnly bif bthey bare blost bdue bto ban binsured bperil.
The bitems bwould bbe bcovered bif bdestroyed bby ban binsured bperil. bNote bthat bthe
bitems bmust beither bbe bon bthe binsured's bresidence bpremises bor bnext bto bthe
bresidence bpremises bsuch bas bin ba bneighbor's bgarage.
Under ban bEquipment bBreakdown bProtection bpolicy bwith b$500,000 bin bcoverage, ba
bcovered b"accident" bresulted bin bthe bfollowing:
I. b$500,000 bworth bof bdamage bto bthe bproperty.
II. b$10,000 bdamage bto bthe bproperty bof banother bin bthe binsured's bcare.
III. b$5,000 bin blegal bfees bto bdefend bthe binsured bin bthis bcase.
The bpolicy bwill bpay ba btotal bof:
$505,000. b
$500,000. b
$510,000. b
$515,000. b- bcorrect banswers✔✔The bcorrect banswer bis: b$505,000.
EXPLANATION:
The bmaximum bthat bcan bbe bpaid bis bthe blimit bof bthe bpolicy. bLegal bexpenses bare bin
baddition bto bthe blimit bof bcoverage.
The binsured bis binsured bunder ba bDP-3 bdwelling bform band bis bremodeling bthe
bdwelling. bHe bdoes bnot bhave ba bplace bto bstore bthe bmaterials. bHis bnext bdoor
bneighbor bpermits bthe binsured bto bstore bthe bmaterials bin bhis bgarage. bThe bgarage bis
bdestroyed bby bfire band bthe bmaterials bare balso bdestroyed. bWhich bof bthe bfollowing
bapplies?
- bThe bpolicy bhas ba bspecial blimit bunder ban bextension bof bcoverage bthat bapplies. b
- bCoverage bis bincluded bunder bthe bbuilding bcoverage band bwould bapply bsince bthe
bmaterials bare bnext bto bthe binsured's bpremises. b
- bThe bpolicy bwould bnot bpay bthe bclaim bsince bthe bmaterials bwere boff bthe binsured's
bresidence bpremises. b
- bThe bmaterials bmust bbe bin ban benclosed bstructure bfor bcoverage bto bapply. b-
bcorrect banswers✔✔The bcorrect banswer bis: bCoverage bis bincluded bunder bthe
bbuilding bcoverage band bwould bapply bsince bthe bmaterials bare bnext bto bthe binsured's
bpremises.
EXPLANATION:
The bpolicy bwould brespond bto bpay bthe bloss bbecause bthe bpolicy bcovers bbuilding
bmaterials blocated bon bor bnext bto bthe binsured bpremises.
,All bof bthe bfollowing bare bnecessary bfor bLiability bcoverage bto bapply bunder bthe bPAP,
bexcept:
The binsured bmust bnot bhave bbeen bdrinking. b
The bperson bliable bmust bbe ban binsured bperson. b
The binsured bmust bbe blegally bliable bfor bthe baccident. b
The bdamage bor binjury bmust bbe bthe bresult bof ban bauto baccident. b- bcorrect
banswers✔✔The bcorrect banswer bis: bThe binsured bmust bnot bhave bbeen bdrinking.
It bis bnot bnecessary bthat bthe binsured bnot bhave bbeen bdrinking balcohol bat bthe btime
bof bthe baccident. bCoverage bwould bstill bapply.
Under ban bequipment bdealer's bform, bwhich bof bthe bfollowing bwould bnot bbe bcovered?
Inventory b
Serviced bitems b
Customer's bproperty bon bthe binsured's bpremises b
Vehicles bfor bhighway buse b- bcorrect banswers✔✔The bcorrect banswer bis: bVehicles
bfor bhighway buse.
EXPLANATION:
Inland bmarine bforms bprovide bcoverage bfor bthe binsured's bgoods bas bwell bas
bproperty bof bothers, bbut bthey bdo bnot bcover bautomobiles.
Which bof bthe bfollowing bcomponents bMUST bbe bincluded bin bthe bdefinition bof ba
bhostile bfire:
I. bRapid boxidation baccompanied bby ba bflame bor bat bleast ba bglow.
II. bMust bbe bsudden band bunexpected.
III. bMust bhave bbeen bintentionally bset bby bthe binsured.
IV. bMust bspread bbeyond bits bintended bplace.
I, bII band bIV bonly b
I, bII, bIII band bIV b
I band bII bonly b
I, bIII band bIV bonly b- bcorrect banswers✔✔The bcorrect banswer bis: bI, bII band bIV bonly.
EXPLANATION:
This bdefinition bmust binclude bthree bof bthe bfour bcomponents bexpressed bhere. bIn
baddition, ba bhostile bfire bis bone bthat bis bspread bbeyond bits bintended bplace bor ba
bplace bnot bintended bfor bit.
For bhow blong bmust ban badjusting bfirm bmaintain bits bclaim bfiles?
For bas blong bas bany bstatute bof blimitations b
For bthe bcurrent byear band b10 bprior byears b
For bthe bcurrent byear band b4 bprior byears b
, For bthe bcurrent byear bonly b- bcorrect banswers✔✔The bcorrect banswer bis: bFor bthe
bcurrent byear band b4 bprior byears.
EXPLANATION:
Per bthe bCalifornia bDOI, badjusting bfirms bmust bmaintain bfiles bfor bthe bcurrent bpolicy
byear band bthe bpreceding bfour byears, bat bthe bcompany's bprincipal bplace bof
bbusiness.
An badjuster, bacting bas ba bfiduciary bagent, bshould bdo bwhich bof bthe bfollowing?
- bNot brepresent binterests bwhich bare badverse bto bthose bof bthe bprincipal b
- bAll bof bthe bresponses bare bcorrect b
- bNot bseek bprofit bfrom ban boutside bsource bas ba bconsequence bof bactions bfor band
bbehalf bof bthe bprincipal b
- bAct bwith ba bhigh bdegree bof bfidelity band bloyalty bto bthe binterests bof bthe bprincipal b-
bcorrect banswers✔✔The bcorrect banswer bis: bAll bof bthe bresponses bare bcorrect b.
EXPLANATION:
A bfiduciary bagent brepresents ba bprincipal, band btherefore bmust bplace bthe bprincipal's
bfinancial binterests babove bany bother band bact bwith bthe butmost bdegree bof bcare bto
bprotect bthe bprincipal's bfinancial binterests.
Which bof bthe bfollowing bsituations bwould bbe bcovered bunder bbodily binjury b(BI)
bliability bcoverage?
Physical bImpairment b
False bArrest b
Libel b
Suicide b- bcorrect banswers✔✔The bcorrect banswer bis: bPhysical bImpairment
EXPLANATION:
Libel, bslander, band bsuicide bare bnot bcovered bwithin bthe bdefinition bof bbodily binjury.
bPhysical bimpairment bis ba bform bof bbodily binjury. bLibel band bslander bare bforms bof
b"personal binjury" bcoverage.
Which bof bthe bfollowing bis ba bvalid breason bto bdeny bcoverage bor bcharge ba bhigher
bpremium bfor ban bautomobile bpolicy?
Race bor breligion b
Adverse bdriving bhistory bor bmotor bvehicle brecord b
Sexual borientation b
Ancestry b- bcorrect banswers✔✔The bcorrect banswer bis: bAdverse bdriving bhistory bor
bmotor bvehicle brecord
EXPLANATION:
Correct Answers
Which bof bthe bfollowing bdwelling bforms bprovides bcoverage bfor bloss bof brental
bincome?
- bThe bBasic, bBroad band bSpecial bForm b
- bThe bBasic band bBroad bForms bonly b
- bThe bBroad band bSpecial bForms bonly b
- bThe bSpecial bForm bonly b- bcorrect banswers✔✔The bcorrect banswer bis: bThe bBasic,
bBroad band bSpecial bForm.
EXPLANATION:
All bof bthe bforms bprovide bfor brental bvalue bcoverage. bIn bthe bDP-2 band bDP-3, bit bis
b20% bof bthe bCoverage bA blimit band bis badditional bcoverage. bWith bthe bDP-1, bthe
b20% bcoverage breduces bthe bavailable bCoverage bA bamount bon bthe bdwelling. b(Note:
bin bNorth bCarolina bthe bpercentage bis b10%.)
Which bof bthe bfollowing bcan bbe bcategorized bas bliability bdoctrines?
Vicarious b
Res bIpsa bLoquitur b
Strict b
All bof bthe bResponses bare bCorrect b- bcorrect banswers✔✔The bcorrect banswer bis: bAll
bof bthe bResponses bare bCorrect.
EXPLANATION:
All bof bthese bterms bcan bbe bcategorized ba bliability bdoctrines. bRes bIpsa bLoquitur
bmeans b"the bthing bspeaks bfor bitself."
Under ban bHO-3 bform bmaterials band bsupplies bto bbe bused bin bconstruction,
balteration bor brepair bof bthe bstructure band bkept bnext bto bthe bresidence bpremises bare
bcovered:
If bthey bhave bbeen bat bthe blocation bmore bthan b30 bdays. b
If bthey bhave bbeen bat bthe blocation bless bthan b30 bdays. b
Only bif bthey bare blost bdue bto ban binsured bperil. b
,Only bif bthey bare blost bdue bto bfire. b- bcorrect banswers✔✔The bcorrect banswer bis:
bOnly bif bthey bare blost bdue bto ban binsured bperil.
The bitems bwould bbe bcovered bif bdestroyed bby ban binsured bperil. bNote bthat bthe
bitems bmust beither bbe bon bthe binsured's bresidence bpremises bor bnext bto bthe
bresidence bpremises bsuch bas bin ba bneighbor's bgarage.
Under ban bEquipment bBreakdown bProtection bpolicy bwith b$500,000 bin bcoverage, ba
bcovered b"accident" bresulted bin bthe bfollowing:
I. b$500,000 bworth bof bdamage bto bthe bproperty.
II. b$10,000 bdamage bto bthe bproperty bof banother bin bthe binsured's bcare.
III. b$5,000 bin blegal bfees bto bdefend bthe binsured bin bthis bcase.
The bpolicy bwill bpay ba btotal bof:
$505,000. b
$500,000. b
$510,000. b
$515,000. b- bcorrect banswers✔✔The bcorrect banswer bis: b$505,000.
EXPLANATION:
The bmaximum bthat bcan bbe bpaid bis bthe blimit bof bthe bpolicy. bLegal bexpenses bare bin
baddition bto bthe blimit bof bcoverage.
The binsured bis binsured bunder ba bDP-3 bdwelling bform band bis bremodeling bthe
bdwelling. bHe bdoes bnot bhave ba bplace bto bstore bthe bmaterials. bHis bnext bdoor
bneighbor bpermits bthe binsured bto bstore bthe bmaterials bin bhis bgarage. bThe bgarage bis
bdestroyed bby bfire band bthe bmaterials bare balso bdestroyed. bWhich bof bthe bfollowing
bapplies?
- bThe bpolicy bhas ba bspecial blimit bunder ban bextension bof bcoverage bthat bapplies. b
- bCoverage bis bincluded bunder bthe bbuilding bcoverage band bwould bapply bsince bthe
bmaterials bare bnext bto bthe binsured's bpremises. b
- bThe bpolicy bwould bnot bpay bthe bclaim bsince bthe bmaterials bwere boff bthe binsured's
bresidence bpremises. b
- bThe bmaterials bmust bbe bin ban benclosed bstructure bfor bcoverage bto bapply. b-
bcorrect banswers✔✔The bcorrect banswer bis: bCoverage bis bincluded bunder bthe
bbuilding bcoverage band bwould bapply bsince bthe bmaterials bare bnext bto bthe binsured's
bpremises.
EXPLANATION:
The bpolicy bwould brespond bto bpay bthe bloss bbecause bthe bpolicy bcovers bbuilding
bmaterials blocated bon bor bnext bto bthe binsured bpremises.
,All bof bthe bfollowing bare bnecessary bfor bLiability bcoverage bto bapply bunder bthe bPAP,
bexcept:
The binsured bmust bnot bhave bbeen bdrinking. b
The bperson bliable bmust bbe ban binsured bperson. b
The binsured bmust bbe blegally bliable bfor bthe baccident. b
The bdamage bor binjury bmust bbe bthe bresult bof ban bauto baccident. b- bcorrect
banswers✔✔The bcorrect banswer bis: bThe binsured bmust bnot bhave bbeen bdrinking.
It bis bnot bnecessary bthat bthe binsured bnot bhave bbeen bdrinking balcohol bat bthe btime
bof bthe baccident. bCoverage bwould bstill bapply.
Under ban bequipment bdealer's bform, bwhich bof bthe bfollowing bwould bnot bbe bcovered?
Inventory b
Serviced bitems b
Customer's bproperty bon bthe binsured's bpremises b
Vehicles bfor bhighway buse b- bcorrect banswers✔✔The bcorrect banswer bis: bVehicles
bfor bhighway buse.
EXPLANATION:
Inland bmarine bforms bprovide bcoverage bfor bthe binsured's bgoods bas bwell bas
bproperty bof bothers, bbut bthey bdo bnot bcover bautomobiles.
Which bof bthe bfollowing bcomponents bMUST bbe bincluded bin bthe bdefinition bof ba
bhostile bfire:
I. bRapid boxidation baccompanied bby ba bflame bor bat bleast ba bglow.
II. bMust bbe bsudden band bunexpected.
III. bMust bhave bbeen bintentionally bset bby bthe binsured.
IV. bMust bspread bbeyond bits bintended bplace.
I, bII band bIV bonly b
I, bII, bIII band bIV b
I band bII bonly b
I, bIII band bIV bonly b- bcorrect banswers✔✔The bcorrect banswer bis: bI, bII band bIV bonly.
EXPLANATION:
This bdefinition bmust binclude bthree bof bthe bfour bcomponents bexpressed bhere. bIn
baddition, ba bhostile bfire bis bone bthat bis bspread bbeyond bits bintended bplace bor ba
bplace bnot bintended bfor bit.
For bhow blong bmust ban badjusting bfirm bmaintain bits bclaim bfiles?
For bas blong bas bany bstatute bof blimitations b
For bthe bcurrent byear band b10 bprior byears b
For bthe bcurrent byear band b4 bprior byears b
, For bthe bcurrent byear bonly b- bcorrect banswers✔✔The bcorrect banswer bis: bFor bthe
bcurrent byear band b4 bprior byears.
EXPLANATION:
Per bthe bCalifornia bDOI, badjusting bfirms bmust bmaintain bfiles bfor bthe bcurrent bpolicy
byear band bthe bpreceding bfour byears, bat bthe bcompany's bprincipal bplace bof
bbusiness.
An badjuster, bacting bas ba bfiduciary bagent, bshould bdo bwhich bof bthe bfollowing?
- bNot brepresent binterests bwhich bare badverse bto bthose bof bthe bprincipal b
- bAll bof bthe bresponses bare bcorrect b
- bNot bseek bprofit bfrom ban boutside bsource bas ba bconsequence bof bactions bfor band
bbehalf bof bthe bprincipal b
- bAct bwith ba bhigh bdegree bof bfidelity band bloyalty bto bthe binterests bof bthe bprincipal b-
bcorrect banswers✔✔The bcorrect banswer bis: bAll bof bthe bresponses bare bcorrect b.
EXPLANATION:
A bfiduciary bagent brepresents ba bprincipal, band btherefore bmust bplace bthe bprincipal's
bfinancial binterests babove bany bother band bact bwith bthe butmost bdegree bof bcare bto
bprotect bthe bprincipal's bfinancial binterests.
Which bof bthe bfollowing bsituations bwould bbe bcovered bunder bbodily binjury b(BI)
bliability bcoverage?
Physical bImpairment b
False bArrest b
Libel b
Suicide b- bcorrect banswers✔✔The bcorrect banswer bis: bPhysical bImpairment
EXPLANATION:
Libel, bslander, band bsuicide bare bnot bcovered bwithin bthe bdefinition bof bbodily binjury.
bPhysical bimpairment bis ba bform bof bbodily binjury. bLibel band bslander bare bforms bof
b"personal binjury" bcoverage.
Which bof bthe bfollowing bis ba bvalid breason bto bdeny bcoverage bor bcharge ba bhigher
bpremium bfor ban bautomobile bpolicy?
Race bor breligion b
Adverse bdriving bhistory bor bmotor bvehicle brecord b
Sexual borientation b
Ancestry b- bcorrect banswers✔✔The bcorrect banswer bis: bAdverse bdriving bhistory bor
bmotor bvehicle brecord
EXPLANATION:
