CA Adjusters license (Latest 2026/ 2027
Update) 100% Verified Questions &
Answers {Grade A}
Which of the following is NOT provided by the farm employers liability and farm
employees medical payments insurance endorsement?
- Payment of statutory workers compensation benefits
- Pays medical payments to an injured farm employee
- Provides employers legal liability coverage where a bodily injury has occurred to an
employee
- Provides defense coverage to the farm owner as a result of an injured employee
who brings a legal action - correct answer The correct answer is: Payment of statutory
workers compensation benefits.
EXPLANATION:
This endorsement offers farm employers liability coverage and farm employee
medical payments insurance. This endorsement does not provide statutory workers
compensation benefits.
The most comprehensive coverage provided by the Dwelling Property program is
found in the:
DP-3.
DP-1.
DP-2.
DP-4. - correct answer The correct answer is: DP-3.
, CA Adjusters license (Latest 2026/ 2027
Update) 100% Verified Questions &
Answers {Grade A}
EXPLANATION:
The DP-3 form provides "open-peril" (all risk of loss) for the dwelling and other
structures. The other forms provide "named peril" coverage.
Mary intentionally trips her neighbor while the neighbor is trespassing on the
insured's property. Although the neighbor is not injured, Mary gives the neighbor
$500 in cash to settle any potential liability claim. How will Mary's insurance company
most likely respond in this situation?
The insurer will reimburse Mary for the entire $500.
The insurer will reimburse Mary for $500, less any applicable deductible.
The insurer will sue the neighbor for the return of the $500 because the neighbor was
not injured.
The insurer will deny liability coverage because Mary's action was intentional. -
correct answer The correct answer is: The insurer will deny liability coverage because
Mary's action was intentional.
EXPLANATION:
Intentional acts are excluded and the company will deny the claim. The only
exception to this exclusion is when the insured is attempting to use reasonable force
to protect themselves or their property.
, CA Adjusters license (Latest 2026/ 2027
Update) 100% Verified Questions &
Answers {Grade A}
The insured is liable for $500,000 in damages for a personal injury claim that is
covered under the insured's primary liability policy. The primary liability policy has a
$300,000 limit per occurrence. The insured also has a $1 million umbrella liability
policy with a $3,000 self insured retention limit. How would this case likely be settled?
- The primary policy would pay $300,000 and the insured would pay $200,000.
- The primary policy would pay $300,000, the insured would pay $3,000, and the
umbrella policy would pay $197,000.
- The primary policy would pay nothing; the umbrella policy would pay the full
$500,000.
- The primary policy would pay $300,000 and the umbrella policy would pay
$200,000. - correct answer The correct answer is: The primary policy would pay
$300,000 and the umbrella policy would pay $200,000.
EXPLANATION:
Since it is a covered claim under the underlying coverage, the umbrella policy picks
up and pays the remaining portion of the claim.
An inland marine coverage which covers a store that has an average inventory of
$250,000 or less of jewelry would need:
A jewelers block policy.
Commercial articles floater.
, CA Adjusters license (Latest 2026/ 2027
Update) 100% Verified Questions &
Answers {Grade A}
Floor plan merchandise coverage form.
Bailee's customers policy. - correct answer The correct answer is: A jewelers block
policy
EXPLANATION:
A jewelers block policy is designed to cover a store that has an average inventory of
$250,000 or less.
If your insurance company cancels your commercial insurance, whom must they
notify?
They must notify all Insureds listed on the policy.
They must notify whoever is listed first on the policy.
They must notify the first named insured listed on the policy.
They must notify whoever is responsible for premium payments. - correct answer The
correct answer is: They must notify the first named insured listed on the policy.
EXPLANATION:
Only the first named insured listed on the policy is to receive any notices.
Which of the following is an official notice of a lawsuit?
Interrogatory
Update) 100% Verified Questions &
Answers {Grade A}
Which of the following is NOT provided by the farm employers liability and farm
employees medical payments insurance endorsement?
- Payment of statutory workers compensation benefits
- Pays medical payments to an injured farm employee
- Provides employers legal liability coverage where a bodily injury has occurred to an
employee
- Provides defense coverage to the farm owner as a result of an injured employee
who brings a legal action - correct answer The correct answer is: Payment of statutory
workers compensation benefits.
EXPLANATION:
This endorsement offers farm employers liability coverage and farm employee
medical payments insurance. This endorsement does not provide statutory workers
compensation benefits.
The most comprehensive coverage provided by the Dwelling Property program is
found in the:
DP-3.
DP-1.
DP-2.
DP-4. - correct answer The correct answer is: DP-3.
, CA Adjusters license (Latest 2026/ 2027
Update) 100% Verified Questions &
Answers {Grade A}
EXPLANATION:
The DP-3 form provides "open-peril" (all risk of loss) for the dwelling and other
structures. The other forms provide "named peril" coverage.
Mary intentionally trips her neighbor while the neighbor is trespassing on the
insured's property. Although the neighbor is not injured, Mary gives the neighbor
$500 in cash to settle any potential liability claim. How will Mary's insurance company
most likely respond in this situation?
The insurer will reimburse Mary for the entire $500.
The insurer will reimburse Mary for $500, less any applicable deductible.
The insurer will sue the neighbor for the return of the $500 because the neighbor was
not injured.
The insurer will deny liability coverage because Mary's action was intentional. -
correct answer The correct answer is: The insurer will deny liability coverage because
Mary's action was intentional.
EXPLANATION:
Intentional acts are excluded and the company will deny the claim. The only
exception to this exclusion is when the insured is attempting to use reasonable force
to protect themselves or their property.
, CA Adjusters license (Latest 2026/ 2027
Update) 100% Verified Questions &
Answers {Grade A}
The insured is liable for $500,000 in damages for a personal injury claim that is
covered under the insured's primary liability policy. The primary liability policy has a
$300,000 limit per occurrence. The insured also has a $1 million umbrella liability
policy with a $3,000 self insured retention limit. How would this case likely be settled?
- The primary policy would pay $300,000 and the insured would pay $200,000.
- The primary policy would pay $300,000, the insured would pay $3,000, and the
umbrella policy would pay $197,000.
- The primary policy would pay nothing; the umbrella policy would pay the full
$500,000.
- The primary policy would pay $300,000 and the umbrella policy would pay
$200,000. - correct answer The correct answer is: The primary policy would pay
$300,000 and the umbrella policy would pay $200,000.
EXPLANATION:
Since it is a covered claim under the underlying coverage, the umbrella policy picks
up and pays the remaining portion of the claim.
An inland marine coverage which covers a store that has an average inventory of
$250,000 or less of jewelry would need:
A jewelers block policy.
Commercial articles floater.
, CA Adjusters license (Latest 2026/ 2027
Update) 100% Verified Questions &
Answers {Grade A}
Floor plan merchandise coverage form.
Bailee's customers policy. - correct answer The correct answer is: A jewelers block
policy
EXPLANATION:
A jewelers block policy is designed to cover a store that has an average inventory of
$250,000 or less.
If your insurance company cancels your commercial insurance, whom must they
notify?
They must notify all Insureds listed on the policy.
They must notify whoever is listed first on the policy.
They must notify the first named insured listed on the policy.
They must notify whoever is responsible for premium payments. - correct answer The
correct answer is: They must notify the first named insured listed on the policy.
EXPLANATION:
Only the first named insured listed on the policy is to receive any notices.
Which of the following is an official notice of a lawsuit?
Interrogatory
