CALIFORNIA ADJUSTER UPDATED EXAM SCRIPT
QUESTIONS AND ANSWERS GRADED A+
✔✔Stock company - ✔✔What type of insurer sells shares to the public and is owned by
its shareholders?
✔✔captive insurer - ✔✔Any town pediatric has been having a a hard time finding medial
practice insurance. The premiums are extremely high. And they get higher every year.
Finally fed up with the costs of insurance the directors decide to form their own
insurance company which will only serve Anytown Pediatric
What kind of insurance. Would his be ?
✔✔Non-admitted Insurer - ✔✔Bob is looking for an insurance policy but he can't find the
right kind of insurance coverage on his home state of Oregon but he may be able to
purchase surplus lines insurance from:
✔✔hazard - ✔✔Monica home is located in a flood zone . In insurance terms the location
of Monica's home is considered?
✔✔peri- - ✔✔Nina 's home is located in a high crime area . One day she comes home
from work to find that her garage door has been spray painted with graffiti. Nina's
insurer would consider the act of vandalism a
✔✔During a fire the fire department hoses down a house to extinguish the flames. The
water damages that results is an indirect loss - ✔✔Which of the following is NOT an
example an indirect loss?
✔✔ - ✔✔During a heavy thunderstorm the lightning strikes a tree outside Carl,s house
which splinters and falls onto Carl's roof. The room under the roof floods with water
damaging. Carl's expensive flooring Carl's roof damage would be considered ?
✔✔Actual economic interest is defined as - ✔✔Insurable interest is defined as
✔✔His favorite restaurant - ✔✔Insurance interest allows rick to take out an insurance
policy in all but the following
✔✔Jim has already received indemnity from his insurer - ✔✔When Shawn purposefully
caused fire damage to Jim's restaurant Jim's insurer paid the claim and then sued
Shawn for the damages but Jim is still pretty mad about the food hole deal and wants to
sue him as well. Why is it not possible for him to sue Shawn?
✔✔Replacement cost minus total depreciation - ✔✔How is actual cash value calculated
?
,✔✔Deductible - ✔✔A predefined monetary portion of an insurance claim paid by a
policyholder is a:
✔✔Liability insurance policy limits dictate the maximum amount an insurer is
responsible for paying a covered loss - ✔✔Which of the following statements about
liability insurance policy limits is TRUE?
✔✔Contributory Negligence - ✔✔The use of which doctrine would result in David
receiving no damages for his loss if he were found 25% responsible for his own loss?
✔✔Intentional acts - ✔✔Which if the following is excluded from liability. Insurance
coverage?
✔✔Compensatory Damages - ✔✔Sam s neighbor was upset and sued him for
damages Sam is ordered to pay $500 for the tree under which category if damages
would this fall?
✔✔Court decisions and customs - ✔✔Common law is based on?
✔✔Liberalization Clause - ✔✔Ned insurer made a business decision that broadened
coverage in new standard policies without increasing premiums. Be cause if this. The
insurer. Was rehired to automatically. Apply this new broadened coverage to Ned's
existing policy . This requirement is documented in the :
✔✔No benefit if bailee - ✔✔Nicole's car. Was damaged. While it was being serviced at
don's auto shop. Nicole's auto insurance policy covers physical damages to her vehicle
but it will not cover the damages that occurred while the vehicle was under the control
idy Din's Auto body shop which provision in her policy states this ?
✔✔The insurer will pay to defend the insured in a lawsuit up to the policy limit -
✔✔Which of the following provisions is NOT included in the legal action against the
insurer clause in?
✔✔Lightening - ✔✔Which of the following is NOT an exclusion commonly found in the
standard fire policy?
✔✔Endorsements either add or change coverage - ✔✔Which if the following statements
about a standard fire policy is true?
✔✔Declarations insuring agreement and conditions and exclusions - ✔✔The standard
fire policy had four main parts
✔✔Covered perils - ✔✔Which if the following topics would NOT likely be found. In the
conditions section if the standard fire policy?
, ✔✔Personal property - ✔✔Clark lost power to his home when a windstorm blew the roof
off his house. as a result he lost several hundred dollars worth of meat that he was
keeping ina freezer in his basement . Which homeowners coverage might indemnify
Clark for his loss of meat?
✔✔Homeowners 6 (Unit-Owners Form) - ✔✔Which ISO form is known as as Condo
form?
✔✔Fire Dept Service Charge - ✔✔Which of these homeowners policy coverages does
NOT usually have a deductible?
✔✔Neighbors injury's - ✔✔Who s injuries will be covered by Jake homeowners policy
under coverage E personal liability ?
✔✔Additional Living Expenses two weeks when forced out by civil authority -
✔✔Increases living expenses covered due to mandatory evacuation
✔✔HO 3 - ✔✔Open perils for structure and detached garage and named perils for
personal property
✔✔Sofa and lap tops - ✔✔What is covered under Coverage C HO 3 during a power
surge form a lightening strike?
✔✔$25000 - ✔✔A typical homeowners policy with. 250,000 limit for coverage A dwelling
will automatically have how much coverage for other structures? Yes
✔✔HO-2 - ✔✔Cheapest policy option to protect financial interests in home
✔✔10 % of what coverage A dwelling was purchased - ✔✔Coverage B other structures
HO
✔✔Coverage F - ✔✔Which part of the homeboy policy provides coverage for medical
expenses of third parties who are injured on your property ?
✔✔personal liability - ✔✔Coverage E refers to which part of the HO policy?
✔✔Loss of rental income after damage to a rental unit has been fixed but no new renter
has been found - ✔✔In a Homeowners policy. Coverage D loss of use will NOT cover
✔✔pets - ✔✔What is not covered by Coverage C personal property on HO?
✔✔$500 per tree - ✔✔Additional coverage tree and shrub replacement will pay
QUESTIONS AND ANSWERS GRADED A+
✔✔Stock company - ✔✔What type of insurer sells shares to the public and is owned by
its shareholders?
✔✔captive insurer - ✔✔Any town pediatric has been having a a hard time finding medial
practice insurance. The premiums are extremely high. And they get higher every year.
Finally fed up with the costs of insurance the directors decide to form their own
insurance company which will only serve Anytown Pediatric
What kind of insurance. Would his be ?
✔✔Non-admitted Insurer - ✔✔Bob is looking for an insurance policy but he can't find the
right kind of insurance coverage on his home state of Oregon but he may be able to
purchase surplus lines insurance from:
✔✔hazard - ✔✔Monica home is located in a flood zone . In insurance terms the location
of Monica's home is considered?
✔✔peri- - ✔✔Nina 's home is located in a high crime area . One day she comes home
from work to find that her garage door has been spray painted with graffiti. Nina's
insurer would consider the act of vandalism a
✔✔During a fire the fire department hoses down a house to extinguish the flames. The
water damages that results is an indirect loss - ✔✔Which of the following is NOT an
example an indirect loss?
✔✔ - ✔✔During a heavy thunderstorm the lightning strikes a tree outside Carl,s house
which splinters and falls onto Carl's roof. The room under the roof floods with water
damaging. Carl's expensive flooring Carl's roof damage would be considered ?
✔✔Actual economic interest is defined as - ✔✔Insurable interest is defined as
✔✔His favorite restaurant - ✔✔Insurance interest allows rick to take out an insurance
policy in all but the following
✔✔Jim has already received indemnity from his insurer - ✔✔When Shawn purposefully
caused fire damage to Jim's restaurant Jim's insurer paid the claim and then sued
Shawn for the damages but Jim is still pretty mad about the food hole deal and wants to
sue him as well. Why is it not possible for him to sue Shawn?
✔✔Replacement cost minus total depreciation - ✔✔How is actual cash value calculated
?
,✔✔Deductible - ✔✔A predefined monetary portion of an insurance claim paid by a
policyholder is a:
✔✔Liability insurance policy limits dictate the maximum amount an insurer is
responsible for paying a covered loss - ✔✔Which of the following statements about
liability insurance policy limits is TRUE?
✔✔Contributory Negligence - ✔✔The use of which doctrine would result in David
receiving no damages for his loss if he were found 25% responsible for his own loss?
✔✔Intentional acts - ✔✔Which if the following is excluded from liability. Insurance
coverage?
✔✔Compensatory Damages - ✔✔Sam s neighbor was upset and sued him for
damages Sam is ordered to pay $500 for the tree under which category if damages
would this fall?
✔✔Court decisions and customs - ✔✔Common law is based on?
✔✔Liberalization Clause - ✔✔Ned insurer made a business decision that broadened
coverage in new standard policies without increasing premiums. Be cause if this. The
insurer. Was rehired to automatically. Apply this new broadened coverage to Ned's
existing policy . This requirement is documented in the :
✔✔No benefit if bailee - ✔✔Nicole's car. Was damaged. While it was being serviced at
don's auto shop. Nicole's auto insurance policy covers physical damages to her vehicle
but it will not cover the damages that occurred while the vehicle was under the control
idy Din's Auto body shop which provision in her policy states this ?
✔✔The insurer will pay to defend the insured in a lawsuit up to the policy limit -
✔✔Which of the following provisions is NOT included in the legal action against the
insurer clause in?
✔✔Lightening - ✔✔Which of the following is NOT an exclusion commonly found in the
standard fire policy?
✔✔Endorsements either add or change coverage - ✔✔Which if the following statements
about a standard fire policy is true?
✔✔Declarations insuring agreement and conditions and exclusions - ✔✔The standard
fire policy had four main parts
✔✔Covered perils - ✔✔Which if the following topics would NOT likely be found. In the
conditions section if the standard fire policy?
, ✔✔Personal property - ✔✔Clark lost power to his home when a windstorm blew the roof
off his house. as a result he lost several hundred dollars worth of meat that he was
keeping ina freezer in his basement . Which homeowners coverage might indemnify
Clark for his loss of meat?
✔✔Homeowners 6 (Unit-Owners Form) - ✔✔Which ISO form is known as as Condo
form?
✔✔Fire Dept Service Charge - ✔✔Which of these homeowners policy coverages does
NOT usually have a deductible?
✔✔Neighbors injury's - ✔✔Who s injuries will be covered by Jake homeowners policy
under coverage E personal liability ?
✔✔Additional Living Expenses two weeks when forced out by civil authority -
✔✔Increases living expenses covered due to mandatory evacuation
✔✔HO 3 - ✔✔Open perils for structure and detached garage and named perils for
personal property
✔✔Sofa and lap tops - ✔✔What is covered under Coverage C HO 3 during a power
surge form a lightening strike?
✔✔$25000 - ✔✔A typical homeowners policy with. 250,000 limit for coverage A dwelling
will automatically have how much coverage for other structures? Yes
✔✔HO-2 - ✔✔Cheapest policy option to protect financial interests in home
✔✔10 % of what coverage A dwelling was purchased - ✔✔Coverage B other structures
HO
✔✔Coverage F - ✔✔Which part of the homeboy policy provides coverage for medical
expenses of third parties who are injured on your property ?
✔✔personal liability - ✔✔Coverage E refers to which part of the HO policy?
✔✔Loss of rental income after damage to a rental unit has been fixed but no new renter
has been found - ✔✔In a Homeowners policy. Coverage D loss of use will NOT cover
✔✔pets - ✔✔What is not covered by Coverage C personal property on HO?
✔✔$500 per tree - ✔✔Additional coverage tree and shrub replacement will pay
