California Adjuster Exam Prep Exam
Questions with 100% Correct Answers
| Verified 2026 | ASSURED SUCCESS
The process where by a mutual insurer becomes a stock company is called - CORRECT ANSWERS
Demutualization
The process whereby a stock company a mutual insurer is called - CORRECT ANSWERS
Mutualization
The provision in a property policy which states that the insured has been paid up to their insurable
interest is - CORRECT ANSWERS Valuation clause
The part of the policy that states the amount of coverage the insured property policy period is -
CORRECT ANSWERS Declaration
Part of the policy that establishes limits upon the insurer and the insured with the insurance policy -
CORRECT ANSWERS Conditions
Which are the characteristics of negligence - CORRECT ANSWERS Duty, breach, proximate
cause, damages
Which of the following is not a federal program - CORRECT ANSWERS Worker' compensation
Absolute risk(liability) is imposed - CORRECT ANSWERS When there is negligence whether
proven or not
,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? - CORRECT ANSWERS
$0
what is the main purpose of tort law - CORRECT ANSWERS to determine financial
responsibility for damage
what of the following is not considered an intentional tort? - CORRECT ANSWERS Auto
accident
Which of the following statements is true regarding compensatory damages? - CORRECT ANSWERS
There is usually no direct correlation between the amount of general and special damages awarded to
the victim
The insurer decides not to renew an insured's personal auto policy. How much notice must the insurer
provide to the insured - CORRECT ANSWERS 30 days
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 - CORRECT ANSWERS a
homeowner decides not to install a pool in the backyard
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 - CORRECT
ANSWERS an unfair practice
a person can base his/her claim for liability on the basis of all of the following EXCEPT - CORRECT
ANSWERS breach of liability
the term "assignment" refers to - CORRECT ANSWERS the transfer of the insured's interest in
a policy to another party
,the term "subrogation" refers to - CORRECT ANSWERS the insured's right to recover payment
from a responsible 3rd party
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, - CORRECT ANSWERS subrogation
an insurance deductible is - CORRECT ANSWERS the amount of covered expense that the
insured pays before the insurer pays,
all of the following are requirements for a notice by mail to an insured by insurer except - CORRECT
ANSWERS notice must be sent with return receipt required
which of the following is considered special damages - CORRECT ANSWERS Compensation for
time away from work
Which advisory organization(s) develop forms for the standard market? - CORRECT ANSWERS
Insurance service office and American association of insurances
Which of the following would be considered special damages? - CORRECT ANSWERS Lost
wages
What do the initials S.T.A.R.R represent? - CORRECT ANSWERS Methods of risk mamagement
All of the following would be considered benefits of insurance except - CORRECT ANSWERS
Retention of loss by the insured
What gives an insured party the right to seek compensation if it is proven that another person with
negligence contributed to the injury - CORRECT ANSWERS Tort law
, What of the following is NOT one the three main types of insurance losses - CORRECT ANSWERS
Financial loss
Under a special cause of loss form if a landslide is caused by an unnatural flow of water due to improper
grading, the loss is, - CORRECT ANSWERS Excluded under the concurrent causation
An open peril policy protects against the loss from - CORRECT ANSWERS Any peril, other than
those specifically excluded
What factor support the principle of indemnity? - CORRECT ANSWERS Insurable interest
All of the following are characteristics of an ideally insurable loss exposure" except" - CORRECT
ANSWERS Losses that are catastrophic
The amount to replace property with " like property of the same quality and construction" is the
properties - CORRECT ANSWERS Replacement value
All of the following are considered intentional torts - CORRECT ANSWERS except, Assult
What is the difference between per accident limit in a split limit policy and single limits - CORRECT
ANSWERS There is no difference
The intentional relinquishment of known right is - CORRECT ANSWERS Waivier
Which type of loss is a business retirement or disability of key employee, exposed to death retirement or
disability of key employee, - CORRECT ANSWERS Personnel loss exposure
The amount to replace an insured's damaged property - CORRECT ANSWERS less
depreciation, is know as the, Actual cash value
Questions with 100% Correct Answers
| Verified 2026 | ASSURED SUCCESS
The process where by a mutual insurer becomes a stock company is called - CORRECT ANSWERS
Demutualization
The process whereby a stock company a mutual insurer is called - CORRECT ANSWERS
Mutualization
The provision in a property policy which states that the insured has been paid up to their insurable
interest is - CORRECT ANSWERS Valuation clause
The part of the policy that states the amount of coverage the insured property policy period is -
CORRECT ANSWERS Declaration
Part of the policy that establishes limits upon the insurer and the insured with the insurance policy -
CORRECT ANSWERS Conditions
Which are the characteristics of negligence - CORRECT ANSWERS Duty, breach, proximate
cause, damages
Which of the following is not a federal program - CORRECT ANSWERS Worker' compensation
Absolute risk(liability) is imposed - CORRECT ANSWERS When there is negligence whether
proven or not
,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? - CORRECT ANSWERS
$0
what is the main purpose of tort law - CORRECT ANSWERS to determine financial
responsibility for damage
what of the following is not considered an intentional tort? - CORRECT ANSWERS Auto
accident
Which of the following statements is true regarding compensatory damages? - CORRECT ANSWERS
There is usually no direct correlation between the amount of general and special damages awarded to
the victim
The insurer decides not to renew an insured's personal auto policy. How much notice must the insurer
provide to the insured - CORRECT ANSWERS 30 days
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 - CORRECT ANSWERS a
homeowner decides not to install a pool in the backyard
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 - CORRECT
ANSWERS an unfair practice
a person can base his/her claim for liability on the basis of all of the following EXCEPT - CORRECT
ANSWERS breach of liability
the term "assignment" refers to - CORRECT ANSWERS the transfer of the insured's interest in
a policy to another party
,the term "subrogation" refers to - CORRECT ANSWERS the insured's right to recover payment
from a responsible 3rd party
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, - CORRECT ANSWERS subrogation
an insurance deductible is - CORRECT ANSWERS the amount of covered expense that the
insured pays before the insurer pays,
all of the following are requirements for a notice by mail to an insured by insurer except - CORRECT
ANSWERS notice must be sent with return receipt required
which of the following is considered special damages - CORRECT ANSWERS Compensation for
time away from work
Which advisory organization(s) develop forms for the standard market? - CORRECT ANSWERS
Insurance service office and American association of insurances
Which of the following would be considered special damages? - CORRECT ANSWERS Lost
wages
What do the initials S.T.A.R.R represent? - CORRECT ANSWERS Methods of risk mamagement
All of the following would be considered benefits of insurance except - CORRECT ANSWERS
Retention of loss by the insured
What gives an insured party the right to seek compensation if it is proven that another person with
negligence contributed to the injury - CORRECT ANSWERS Tort law
, What of the following is NOT one the three main types of insurance losses - CORRECT ANSWERS
Financial loss
Under a special cause of loss form if a landslide is caused by an unnatural flow of water due to improper
grading, the loss is, - CORRECT ANSWERS Excluded under the concurrent causation
An open peril policy protects against the loss from - CORRECT ANSWERS Any peril, other than
those specifically excluded
What factor support the principle of indemnity? - CORRECT ANSWERS Insurable interest
All of the following are characteristics of an ideally insurable loss exposure" except" - CORRECT
ANSWERS Losses that are catastrophic
The amount to replace property with " like property of the same quality and construction" is the
properties - CORRECT ANSWERS Replacement value
All of the following are considered intentional torts - CORRECT ANSWERS except, Assult
What is the difference between per accident limit in a split limit policy and single limits - CORRECT
ANSWERS There is no difference
The intentional relinquishment of known right is - CORRECT ANSWERS Waivier
Which type of loss is a business retirement or disability of key employee, exposed to death retirement or
disability of key employee, - CORRECT ANSWERS Personnel loss exposure
The amount to replace an insured's damaged property - CORRECT ANSWERS less
depreciation, is know as the, Actual cash value
