CA Adjusters license Exam Questions and
Answers (Solved Papers)
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 - Correct Answers ✅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%.)
Which of the following can be categorized as liability
doctrines?
Vicarious
Res Ipsa Loquitur
Strict
All of the Responses are Correct - Correct Answers ✅The
correct answer is: All of the Responses are Correct.
,CA Adjusters license Exam Questions and
Answers (Solved Papers)
EXPLANATION:
All of these terms can be categorized a liability doctrines. Res
Ipsa Loquitur means "the thing speaks for itself."
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. - Correct Answers ✅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.
Under an Equipment Breakdown Protection policy with
$500,000 in coverage, a covered "accident" resulted in the
following:
I. $500,000 worth of damage to the property.
,CA Adjusters license Exam Questions and
Answers (Solved Papers)
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. - Correct Answers ✅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.
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 is destroyed by
fire and the materials are also destroyed. Which of the
following applies?
- The policy has a special limit under an extension of
coverage that applies.
, CA Adjusters license Exam Questions and
Answers (Solved Papers)
- Coverage is included under the building coverage and would
apply since the materials are next to the insured's premises.
- The policy would not pay the claim since the materials were
off the insured's residence premises.
- The materials must be in an enclosed structure for coverage
to apply. - Correct Answers ✅The correct answer is:
Coverage is included under the building coverage and would
apply since the materials are next to the insured's premises.
EXPLANATION:
The policy would respond to pay the loss because the policy
covers building materials located on or next to the insured
premises.
All of the following are necessary for Liability coverage to
apply under the PAP, except:
The insured must not have been drinking.
The person liable must be an insured person.
The insured must be legally liable for the accident.
The damage or injury must be the result of an auto accident.
- Correct Answers ✅The correct answer is: The insured
must not have been drinking.
It is not necessary that the insured not have been drinking
alcohol at the time of the accident. Coverage would still
apply.
Answers (Solved Papers)
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 - Correct Answers ✅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%.)
Which of the following can be categorized as liability
doctrines?
Vicarious
Res Ipsa Loquitur
Strict
All of the Responses are Correct - Correct Answers ✅The
correct answer is: All of the Responses are Correct.
,CA Adjusters license Exam Questions and
Answers (Solved Papers)
EXPLANATION:
All of these terms can be categorized a liability doctrines. Res
Ipsa Loquitur means "the thing speaks for itself."
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. - Correct Answers ✅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.
Under an Equipment Breakdown Protection policy with
$500,000 in coverage, a covered "accident" resulted in the
following:
I. $500,000 worth of damage to the property.
,CA Adjusters license Exam Questions and
Answers (Solved Papers)
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. - Correct Answers ✅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.
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 is destroyed by
fire and the materials are also destroyed. Which of the
following applies?
- The policy has a special limit under an extension of
coverage that applies.
, CA Adjusters license Exam Questions and
Answers (Solved Papers)
- Coverage is included under the building coverage and would
apply since the materials are next to the insured's premises.
- The policy would not pay the claim since the materials were
off the insured's residence premises.
- The materials must be in an enclosed structure for coverage
to apply. - Correct Answers ✅The correct answer is:
Coverage is included under the building coverage and would
apply since the materials are next to the insured's premises.
EXPLANATION:
The policy would respond to pay the loss because the policy
covers building materials located on or next to the insured
premises.
All of the following are necessary for Liability coverage to
apply under the PAP, except:
The insured must not have been drinking.
The person liable must be an insured person.
The insured must be legally liable for the accident.
The damage or injury must be the result of an auto accident.
- Correct Answers ✅The correct answer is: The insured
must not have been drinking.
It is not necessary that the insured not have been drinking
alcohol at the time of the accident. Coverage would still
apply.
