A.D. Banker Final COMPLETE EXAM LATEST
VERSION 2026-2027 QUESTIONS AND 100%
Verified ANSWERS
Which statement is false regarding Supplementary Payments under the Commercial
General Liability policy?
A
Claim related expenses are included
B
The cost of bail bonds is included up to $250
C
Coverage only applies to bodily injury and property damage liability and to personal and
advertising injury liability
D
Payments made under this section reduce the limits of the policy - answer>>>D
Payments made under this section reduce the limits of the policy
An insured who has coverage under the NFIP with a $1,000 deductible for the dwelling
and contents sustains flood damage to both their home and personal property. What is
the maximum the insured will have to pay for damages assuming the loss is under the
policy limits?
A
$3,000
B
$2,000
C
$1,000
D
Nothing - answer>>>B
$2,000
All of the following statements about Homeowners policies are correct, except:
A
,Personal property of an insured's daughter while at college would be covered B
The HO-4 form is also called the Tenants Form
C
Dwellings under construction are eligible
D
The HO-2 pays for losses to personal property on a replacement cost basis - answer>>>D
The HO-2 pays for losses to personal property on a replacement cost basis
When a claimant can prove that a product caused the injury, the fact that the
manufacturer will be held liable regardless of whether the product was defective or not,
is considered which of the following?
A
Strict Liability
B
Direct Liability
C
Absolute Liability
D
Contingent Liability - answer>>>A
Strict Liability
Business personal property temporarily away from the premises is covered by the
Business and Personal Property Coverage Form up to what limit?
A
$500
B
$100,000
C
$1,000
D
$10,000 - answer>>>D
$10,000
The following are all correct, except: A
A physical hazard includes location
B
A moral hazard includes dishonesty
,C
Flammable material near a furnace would be considered a physical hazard D
A physical hazard includes an attitude of indifference to loss - answer>>>D
A physical hazard includes an attitude of indifference to loss
Who enforces the regulations found in the California Code of Regulations?
A
The Commissioner
B
The California legislature
C
The NAIC
D
The public, via a referendum - answer>>>A
The Commissioner
Which of the following is true regarding Trip Transit Forms?
A
They are used to insure single shipments
B
They are used to insure only furniture or household goods
C
The conveying vehicle must be described and listed in the policy
D
They cover shipments only while aboard, or being loaded or unloaded from a vehicle -
answer>>>A
They are used to insure single shipments
Which of the following Conditions under a Building and Personal Property Coverage Form
determines how the various losses will be paid?
A
Deductible
B
Duties in the Event of Loss or Damage
, C
Valuation
D
Appraisal - answer>>>C
Valuation
All of the following are elements in establishing the tort of negligence, except:
A
Standard of Care
B
Legal Duty
C
Proximate Cause
D
Moral Duty - answer>>>D
Moral Duty
An Excess Liability Policy and a Personal Umbrella Policy are different in that:
A
Only an Excess Liability Policy drops down to cover a loss not covered by the underlying
policy B
Only a Personal Umbrella Policy provides first-dollar coverage when the underlying
primary policy does not provide coverage
C
Only a Personal Umbrella Policy requires the insured to have and maintain certain
underlying primary insurance limits
D
Only an Excess Liability Policy has a self-insured retention - answer>>>B
Only a Personal Umbrella Policy provides first-dollar coverage when the underlying
primary policy does not provide coverage
Which of the following is not considered a wrongful act under the EPLI?
A
Sexual harassment
B
Wrongful termination
C
VERSION 2026-2027 QUESTIONS AND 100%
Verified ANSWERS
Which statement is false regarding Supplementary Payments under the Commercial
General Liability policy?
A
Claim related expenses are included
B
The cost of bail bonds is included up to $250
C
Coverage only applies to bodily injury and property damage liability and to personal and
advertising injury liability
D
Payments made under this section reduce the limits of the policy - answer>>>D
Payments made under this section reduce the limits of the policy
An insured who has coverage under the NFIP with a $1,000 deductible for the dwelling
and contents sustains flood damage to both their home and personal property. What is
the maximum the insured will have to pay for damages assuming the loss is under the
policy limits?
A
$3,000
B
$2,000
C
$1,000
D
Nothing - answer>>>B
$2,000
All of the following statements about Homeowners policies are correct, except:
A
,Personal property of an insured's daughter while at college would be covered B
The HO-4 form is also called the Tenants Form
C
Dwellings under construction are eligible
D
The HO-2 pays for losses to personal property on a replacement cost basis - answer>>>D
The HO-2 pays for losses to personal property on a replacement cost basis
When a claimant can prove that a product caused the injury, the fact that the
manufacturer will be held liable regardless of whether the product was defective or not,
is considered which of the following?
A
Strict Liability
B
Direct Liability
C
Absolute Liability
D
Contingent Liability - answer>>>A
Strict Liability
Business personal property temporarily away from the premises is covered by the
Business and Personal Property Coverage Form up to what limit?
A
$500
B
$100,000
C
$1,000
D
$10,000 - answer>>>D
$10,000
The following are all correct, except: A
A physical hazard includes location
B
A moral hazard includes dishonesty
,C
Flammable material near a furnace would be considered a physical hazard D
A physical hazard includes an attitude of indifference to loss - answer>>>D
A physical hazard includes an attitude of indifference to loss
Who enforces the regulations found in the California Code of Regulations?
A
The Commissioner
B
The California legislature
C
The NAIC
D
The public, via a referendum - answer>>>A
The Commissioner
Which of the following is true regarding Trip Transit Forms?
A
They are used to insure single shipments
B
They are used to insure only furniture or household goods
C
The conveying vehicle must be described and listed in the policy
D
They cover shipments only while aboard, or being loaded or unloaded from a vehicle -
answer>>>A
They are used to insure single shipments
Which of the following Conditions under a Building and Personal Property Coverage Form
determines how the various losses will be paid?
A
Deductible
B
Duties in the Event of Loss or Damage
, C
Valuation
D
Appraisal - answer>>>C
Valuation
All of the following are elements in establishing the tort of negligence, except:
A
Standard of Care
B
Legal Duty
C
Proximate Cause
D
Moral Duty - answer>>>D
Moral Duty
An Excess Liability Policy and a Personal Umbrella Policy are different in that:
A
Only an Excess Liability Policy drops down to cover a loss not covered by the underlying
policy B
Only a Personal Umbrella Policy provides first-dollar coverage when the underlying
primary policy does not provide coverage
C
Only a Personal Umbrella Policy requires the insured to have and maintain certain
underlying primary insurance limits
D
Only an Excess Liability Policy has a self-insured retention - answer>>>B
Only a Personal Umbrella Policy provides first-dollar coverage when the underlying
primary policy does not provide coverage
Which of the following is not considered a wrongful act under the EPLI?
A
Sexual harassment
B
Wrongful termination
C
