HAWAII PUBLIC ADJUSTER EXAM
QUESTIONS & ANSWERS(GRADED A+)
In a homeowners policy, Coverage D- Loss of Use will NOT cover:
* Meals out when a home is damaged and not habitable
* loss of rental income if a renter can't stay in the apartment until damages are repaired
* hotel expenses when damage prevents the insured from living in the home
* loss of rental income after damage to a rental unit has been fixed, but no new renter
has been found - ANSWER-* loss of rental income after damage to a rental unit has
been fixed, but no new renter has been found
The limit of liability for Coverage B - Other Structures is typically:
* chosen by the insured
* 10% of Coverage A.
* 50% of Coverage A.
* 20% of Coverage A. - ANSWER-10% of Coverage A
Dewayne is helping Pat restore his 1967 Mustang. While working in Pat's detached
garage, Dewayne accidentally backs into a rickety storage unit, knocking it over and
causing several tools and cans of paint to come crashing down on himself. Which
homeowners policy coverage will pay for Dewayne's injuries?
* Pat's Liability coverage
* Pat's Other Structures coverage
* Dewayne's Dwelling coverage
* Dewayne's Liability coverage - ANSWER-Pat's Liability coverage
An HO-3 policy is intended for - ANSWER-an individual
Jerry has a $125,000 DP-2 policy on a house he's currently renting to Stephanie for
$1,700 a month. Jerry pays $200 in utilities each month out of the $1,700 he receives
from Stephanie. One winter day, a heavy snowfall causes part of Jerry's roof to cave in,
,causing $12,000 in damage to the dwelling. During the two months it takes to repair the
damage, Jerry suspends utility services to the house and Stephanie goes to stay with
her sister. How much can Jerry receive under Coverage D - Loss of Use? - ANSWER-
$3,000
Andrew's house is struck by lightning. The power surge fries two of the family's laptop
computers, and starts a fire that damages his roof, two living room walls, and a leather
sofa. Which of these damages would fall under Coverage C of Andrew's Homeowners 3
policy? - ANSWER-The sofa and laptop computers
Which ISO form is known as the "Condominium Form"? - ANSWER-HO-6
Which of the following is NOT an endorsement commonly added to a Dwelling Policy?
* Dwelling Under Construction
* Annual Depreciation
* Theft
* Liability - ANSWER-Annual Depreciation
A typical homeowners policy with a $250,000 limit for Coverage A - Dwelling will
automatically have how much coverage for Other Structures (assuming there are no
endorsements)? - ANSWER-$25,000
Simon just bought his first home-a cheap fixer-upper in a town where average snowfall
exceeds 80 inches per year. It may be an old house in a run-down neighborhood, but he
still wants to protect his initial investment. What is the cheapest policy option that would
protect Simon's financial interest in his home, even in the brutal winters? - ANSWER-
HO-2
A gas line explodes outside of Sarah's Sewing Shop, ruining her new landscaping.
Which coverage extension on her commercial property policy can help Sarah cover the
cost of replacing her damaged trees and shrubs? - ANSWER-The Outdoor Property
extension provides up to $1,000 in coverage for damage to television and radio
antennae, detached signs, and trees, plants, or shrubs. Trees, plants, and shrubs are
subject to a maximum of $250 coverage per unit.
, In a commercial property policy, which of the following would be paid under the
Business Income Form? - ANSWER-Coverage for continuing operating expenses while
damaged property is being repaired.
Lillian owns an antiques shop and Sandy works part time for her. One afternoon, while
Sandy is decorating the window display, she loses her balance and falls backward off a
step stool, breaking some very expensive lamps in the process. What policy condition in
Lillian's commercial property policy provides evidence that this loss may be covered? -
ANSWER-Control of Property
Lucille owns her own pottery business, making custom items such as bowls, vases, and
artwork. A fire destroys her entire operation and Lucille files a claim with her insurer.
Which of the following would be covered under Coverage C of the Building and
Personal Property Coverage Form in her commercial property policy? - ANSWER-
Lucille's employee's personal belongings stored in her lockerr
Which of the following perils would NOT be covered by a commercial property policy
with a Causes of Loss - Special Form attached to the Building and Personal Property
Coverage Form?
* LuLu's Fine Jewelry must shut down for a month to repair flood damage.
* When a riot breaks out in the town square, Sam's Boutique is looted and vandalized in
the commotion
* Izzy's Furniture loses an entire warehouse in a fire caused by a lightning strike at a
nearby power plant
* A tornado whips through town, leveling a warehouse belonging to Built Industries -
ANSWER-LuLu's Fine Jewelry must shut down for a month to repair flood damage.
Flooding is one of the universal exclusions in the commercial property policy
In which situation would Utility Service - Direct Damage coverage apply?
* John's Car Repair loses power for two days after a hurricane. The resulting loss of
business costs the company $5,000 in lost income
* Brenda's bakery loses power during a snowstorm. When the utility company restores
electricity, there is a power surge that fries Brenda's computer and cash registers.
* Eddies Tractor Supply loses an entire warehouse to a fire when lightning strikes the
roof
QUESTIONS & ANSWERS(GRADED A+)
In a homeowners policy, Coverage D- Loss of Use will NOT cover:
* Meals out when a home is damaged and not habitable
* loss of rental income if a renter can't stay in the apartment until damages are repaired
* hotel expenses when damage prevents the insured from living in the home
* loss of rental income after damage to a rental unit has been fixed, but no new renter
has been found - ANSWER-* loss of rental income after damage to a rental unit has
been fixed, but no new renter has been found
The limit of liability for Coverage B - Other Structures is typically:
* chosen by the insured
* 10% of Coverage A.
* 50% of Coverage A.
* 20% of Coverage A. - ANSWER-10% of Coverage A
Dewayne is helping Pat restore his 1967 Mustang. While working in Pat's detached
garage, Dewayne accidentally backs into a rickety storage unit, knocking it over and
causing several tools and cans of paint to come crashing down on himself. Which
homeowners policy coverage will pay for Dewayne's injuries?
* Pat's Liability coverage
* Pat's Other Structures coverage
* Dewayne's Dwelling coverage
* Dewayne's Liability coverage - ANSWER-Pat's Liability coverage
An HO-3 policy is intended for - ANSWER-an individual
Jerry has a $125,000 DP-2 policy on a house he's currently renting to Stephanie for
$1,700 a month. Jerry pays $200 in utilities each month out of the $1,700 he receives
from Stephanie. One winter day, a heavy snowfall causes part of Jerry's roof to cave in,
,causing $12,000 in damage to the dwelling. During the two months it takes to repair the
damage, Jerry suspends utility services to the house and Stephanie goes to stay with
her sister. How much can Jerry receive under Coverage D - Loss of Use? - ANSWER-
$3,000
Andrew's house is struck by lightning. The power surge fries two of the family's laptop
computers, and starts a fire that damages his roof, two living room walls, and a leather
sofa. Which of these damages would fall under Coverage C of Andrew's Homeowners 3
policy? - ANSWER-The sofa and laptop computers
Which ISO form is known as the "Condominium Form"? - ANSWER-HO-6
Which of the following is NOT an endorsement commonly added to a Dwelling Policy?
* Dwelling Under Construction
* Annual Depreciation
* Theft
* Liability - ANSWER-Annual Depreciation
A typical homeowners policy with a $250,000 limit for Coverage A - Dwelling will
automatically have how much coverage for Other Structures (assuming there are no
endorsements)? - ANSWER-$25,000
Simon just bought his first home-a cheap fixer-upper in a town where average snowfall
exceeds 80 inches per year. It may be an old house in a run-down neighborhood, but he
still wants to protect his initial investment. What is the cheapest policy option that would
protect Simon's financial interest in his home, even in the brutal winters? - ANSWER-
HO-2
A gas line explodes outside of Sarah's Sewing Shop, ruining her new landscaping.
Which coverage extension on her commercial property policy can help Sarah cover the
cost of replacing her damaged trees and shrubs? - ANSWER-The Outdoor Property
extension provides up to $1,000 in coverage for damage to television and radio
antennae, detached signs, and trees, plants, or shrubs. Trees, plants, and shrubs are
subject to a maximum of $250 coverage per unit.
, In a commercial property policy, which of the following would be paid under the
Business Income Form? - ANSWER-Coverage for continuing operating expenses while
damaged property is being repaired.
Lillian owns an antiques shop and Sandy works part time for her. One afternoon, while
Sandy is decorating the window display, she loses her balance and falls backward off a
step stool, breaking some very expensive lamps in the process. What policy condition in
Lillian's commercial property policy provides evidence that this loss may be covered? -
ANSWER-Control of Property
Lucille owns her own pottery business, making custom items such as bowls, vases, and
artwork. A fire destroys her entire operation and Lucille files a claim with her insurer.
Which of the following would be covered under Coverage C of the Building and
Personal Property Coverage Form in her commercial property policy? - ANSWER-
Lucille's employee's personal belongings stored in her lockerr
Which of the following perils would NOT be covered by a commercial property policy
with a Causes of Loss - Special Form attached to the Building and Personal Property
Coverage Form?
* LuLu's Fine Jewelry must shut down for a month to repair flood damage.
* When a riot breaks out in the town square, Sam's Boutique is looted and vandalized in
the commotion
* Izzy's Furniture loses an entire warehouse in a fire caused by a lightning strike at a
nearby power plant
* A tornado whips through town, leveling a warehouse belonging to Built Industries -
ANSWER-LuLu's Fine Jewelry must shut down for a month to repair flood damage.
Flooding is one of the universal exclusions in the commercial property policy
In which situation would Utility Service - Direct Damage coverage apply?
* John's Car Repair loses power for two days after a hurricane. The resulting loss of
business costs the company $5,000 in lost income
* Brenda's bakery loses power during a snowstorm. When the utility company restores
electricity, there is a power surge that fries Brenda's computer and cash registers.
* Eddies Tractor Supply loses an entire warehouse to a fire when lightning strikes the
roof
