Colorado Public Adjuster Study Material
Exam Questions With Correct Answers
Which of the following Homeowners coverages does NOT generally contain a
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deductible?
A. Personal property
| |
B. Other structures
| |
C. Liability
|
D. Dwelling - CORRECT ANSWER✔✔-C
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Actual cash value is most often defined as which of the following options?
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A. Replacement cost less depreciation
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B. Amount paid less depreciation
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C. Fair market value plus appreciation
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D. Appraised value - CORRECT ANSWER✔✔-A
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Which of the following terms is defined as the uncertainty of future outcome?
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A. Risk
|
B. Hazard
|
C. Peril
|
,D. Cause - CORRECT ANSWER✔✔-A
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In order to issue a written binder for a commercial property policy, what is the
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MINIMUM consideration a producer must secure from an applicant?
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A. A promise to pay the premium
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B. A signature on a premium finance agreement
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C. Payment of six months' premium
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D. Payment of twelve months' premium - CORRECT ANSWER✔✔-A
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Which of the following terms BEST describes continuous and repeated exposure
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to conditions that are neither expected nor intended by the insured?
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A. Negligence
|
B. Liability
|
C. Accident
|
D. Occurrence - CORRECT ANSWER✔✔-D
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X insures a home for $100,000 under a Dwelling Property Broad Form (DP-2). If a
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flood causes $1,000 in damage to the home's contents, which of the following
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MAXIMUM amounts will X's insurer pay?| | | | |
A. $0|
B. $800
|
,C. $900 |
D. $1,000 - CORRECT ANSWER✔✔-A
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A building adjacent to an insured's business is severely damaged by fire. Because
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of the nature of the damage to the adjoining property, the insured is denied
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access to the business by the fire department. If the insured's property is covered
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under a Business Income Coverage Form, the insurer will cover the loss of
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earnings for a MAXIMUM of: | | | |
A. three weeks
| |
B. thirty days
| |
C. sixty days
| |
D. six months - CORRECT ANSWER✔✔-A
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G insures G's television repair shop under a Building and Personal Property
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Coverage Form with limits of $100,000 on the building and $50,000 on business
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personal property. A fire causes $10,000 in damage to the building and $20,000 in
| | | | | | | | | | | | |
losses to the contents. G also has to pay $1,000 for debris removal. If the policy
| | | | | | | | | | | | | | | | |
has a deductible of $250, G will receive a MAXIMUM of which of the following
| | | | | | | | | | | | | | |
amounts from the insurer? | | |
A. $29,750
|
B. $30,000
|
C. $30,750
|
D. $31,000 - CORRECT ANSWER✔✔-C
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, In a Commercial Property form, if a building is left vacant, coverage for vandalism
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will continue for up to how many days?
| | | | | | |
A. Thirty
|
B. Forty-five
|
C. Sixty
|
D. Ninety - CORRECT ANSWER✔✔-C
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The National Flood Insurance Program provides coverage for losses caused by all
| | | | | | | | | | | |
of the following occurrences EXCEPT:
| | | |
A. mudslides
|
B. runoff from heavy rain
| | | |
C. overflow of tidal waters
| | | |
D. water-main breakage - CORRECT ANSWER✔✔-A
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Which of the following policy forms would BEST protect a business that must
| | | | | | | | | | | | |
keep operating after a loss?
| | | |
A. Extra Expense
| |
B. Business Income
| |
C. Gross Earnings
| |
D. Contingent Business Interruption - CORRECT ANSWER✔✔-A
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Exam Questions With Correct Answers
Which of the following Homeowners coverages does NOT generally contain a
| | | | | | | | | | |
deductible?
A. Personal property
| |
B. Other structures
| |
C. Liability
|
D. Dwelling - CORRECT ANSWER✔✔-C
| | | |
Actual cash value is most often defined as which of the following options?
| | | | | | | | | | | |
A. Replacement cost less depreciation
| | | |
B. Amount paid less depreciation
| | | |
C. Fair market value plus appreciation
| | | | |
D. Appraised value - CORRECT ANSWER✔✔-A
| | | | |
Which of the following terms is defined as the uncertainty of future outcome?
| | | | | | | | | | | |
A. Risk
|
B. Hazard
|
C. Peril
|
,D. Cause - CORRECT ANSWER✔✔-A
| | | |
In order to issue a written binder for a commercial property policy, what is the
| | | | | | | | | | | | | | |
MINIMUM consideration a producer must secure from an applicant?
| | | | | | | |
A. A promise to pay the premium
| | | | | |
B. A signature on a premium finance agreement
| | | | | | |
C. Payment of six months' premium
| | | | |
D. Payment of twelve months' premium - CORRECT ANSWER✔✔-A
| | | | | | | |
Which of the following terms BEST describes continuous and repeated exposure
| | | | | | | | | | |
to conditions that are neither expected nor intended by the insured?
| | | | | | | | | |
A. Negligence
|
B. Liability
|
C. Accident
|
D. Occurrence - CORRECT ANSWER✔✔-D
| | | |
X insures a home for $100,000 under a Dwelling Property Broad Form (DP-2). If a
| | | | | | | | | | | | | | |
flood causes $1,000 in damage to the home's contents, which of the following
| | | | | | | | | | | | |
MAXIMUM amounts will X's insurer pay?| | | | |
A. $0|
B. $800
|
,C. $900 |
D. $1,000 - CORRECT ANSWER✔✔-A
| | | |
A building adjacent to an insured's business is severely damaged by fire. Because
| | | | | | | | | | | | |
of the nature of the damage to the adjoining property, the insured is denied
| | | | | | | | | | | | | |
access to the business by the fire department. If the insured's property is covered
| | | | | | | | | | | | |
under a Business Income Coverage Form, the insurer will cover the loss of
| | | | | | | | | | | | | |
earnings for a MAXIMUM of: | | | |
A. three weeks
| |
B. thirty days
| |
C. sixty days
| |
D. six months - CORRECT ANSWER✔✔-A
| | | | |
G insures G's television repair shop under a Building and Personal Property
| | | | | | | | | | | |
Coverage Form with limits of $100,000 on the building and $50,000 on business
| | | | | | | | | | | | |
personal property. A fire causes $10,000 in damage to the building and $20,000 in
| | | | | | | | | | | | |
losses to the contents. G also has to pay $1,000 for debris removal. If the policy
| | | | | | | | | | | | | | | | |
has a deductible of $250, G will receive a MAXIMUM of which of the following
| | | | | | | | | | | | | | |
amounts from the insurer? | | |
A. $29,750
|
B. $30,000
|
C. $30,750
|
D. $31,000 - CORRECT ANSWER✔✔-C
| | | |
, In a Commercial Property form, if a building is left vacant, coverage for vandalism
| | | | | | | | | | | | | |
will continue for up to how many days?
| | | | | | |
A. Thirty
|
B. Forty-five
|
C. Sixty
|
D. Ninety - CORRECT ANSWER✔✔-C
| | | |
The National Flood Insurance Program provides coverage for losses caused by all
| | | | | | | | | | | |
of the following occurrences EXCEPT:
| | | |
A. mudslides
|
B. runoff from heavy rain
| | | |
C. overflow of tidal waters
| | | |
D. water-main breakage - CORRECT ANSWER✔✔-A
| | | | |
Which of the following policy forms would BEST protect a business that must
| | | | | | | | | | | | |
keep operating after a loss?
| | | |
A. Extra Expense
| |
B. Business Income
| |
C. Gross Earnings
| |
D. Contingent Business Interruption - CORRECT ANSWER✔✔-A
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