CA ADJUSTERS COMPREHENSIVE EXAM 2025/2026
QUESTIONS AND ANSWERS GRADED A+
✔✔Under the Commercial Property Policy, the Pro-rata Liability Clause means:
Answer Choices: Select the Correct Answer
Each insurer pays its limits under the policy.
Neither Insurer Pays
Each insurer pays in accordance to the percentage of its coverage bears to the total
amount of insurance.
A Form of Coinsurance Clause - ✔✔Each insurer pays in accordance to the percentage
of its coverage bears to the total amount of insurance. is correct.
EXPLANATION:
The insurer will not be liable for a greater proportion of a loss than the amount insured
will bear to the whole insurance covering the property against the peril involved,
whether collectible or not. This is often referred to as the "Other Insurance" clause.
✔✔David has damaged his vehicle by striking a tree. He can:
I. Take the car to a repair garage recommended by the insurer.
II. Take the car to a garage of his choice.
III. Accept payment based on the adjuster's estimate.
Answer Choices: Select the Correct Answer
I, II and III
I and II only
I and III only
I only - ✔✔I, II and III is correct.
EXPLANATION:
The choice belongs to the David, the insured.
✔✔Under a farm policy, which of the following would be covered under Coverage A?
Answer Choices: Select the Correct Answer
A structure attached to the dwelling
A structure detached from the dwelling
Dwelling Contents
Livestock - ✔✔A structure attached to the dwelling is correct.
EXPLANATION:
Coverage A covers the dwelling and any attached structures such as a garage.
✔✔Which of the following coverages is included in a Personal Auto Policy without
having to issue an endorsement?
Answer Choices: Select the Correct Answer
Transportation Expenses
Towing and Labor Costs
Miscellaneous Type Vehicles
Named Nonowner - ✔✔Transportation Expenses.
EXPLANATION:
,Transportation expenses are part of the Physical Damage coverage. Some auto policies
still provide this coverage only if the vehicle has been stolen.
✔✔Basic benefits available under a typical workers compensation policy include which
of the following?
I. Medical expenses.
II. Loss of income.
III. Rehabilitation.
IV. Pain and suffering.
Answer Choices: Select the Correct Answer
I, II, and III only.
I and II only.
I, III, and IV only.
I, II, III and IV. - ✔✔I, II, and III only. is correct.
EXPLANATION:
Workers compensation indemnifies an injured or ill worker for direct expenses resulting
from the cause with rehabilitation provided to encourage a worker to return to
productivity.
✔✔Which of the following is NOT included in the California Code of Regulations (CCR)?
Answer Choices: Select the Correct Answer
Selling techniques.
Specific requirements for different types of insurance.
Procedural issues related to agent and insurance company practices.
Conduct hearings and investigations. - ✔✔The correct answer is: Selling techniques. .
EXPLANATION:
Selling techniques are not issues for the California Department of Insurance unless the
techniques violate insurance law.
✔✔Which commercial property form provides the broadest coverage?
Answer Choices: Select the Correct Answer
Basic form
Broad form
Special form
Deluxe form - ✔✔Special form is correct.
EXPLANATION:
In commercial property insurance, the insured selects from three different "causes of
loss" forms - basic, broad, or special. There is no deluxe form. Basic and broad forms
provide named peril protection; special form is all-risk (open-perils), and is therefore the
broadest.
✔✔The authority the public believes the agent has based on the agent's actions is
known as:
Answer Choices: Select the Correct Answer
, Fiduciary Authority
Expressed Authority
Apparent Authority
Implied Authority - ✔✔Apparent Authority.
EXPLANATION:
Apparent authority is the authority the public believes the agent has which seems to be
apparent by the agent's actions.
✔✔In legal terms, the written explanation of how a loss occurred is called a:
Answer Choices: Select the Correct Answer
Loss notification.
Deposition.
Statement.
Proof of loss. - ✔✔Statement. is correct.
EXPLANATION:
This is a statement. A proof of loss lists the damage for which the insured desires
reimbursement.
✔✔Under Workers Compensation rules, for an employee to receive Temporary
Disability Compensation for the first three (3) days of his disability, his disability period
must extend:
Answer Choices: Select the Correct Answer
21 days
30 days
45 days
60 days - ✔✔21 days is correct.
EXPLANATION:
Benefits are retroactive to the day of the injury if the disability lasts 21 days.
✔✔Under the conditions section of the BOP, which of the following would not be
considered vacant?
Answer Choices: Select the Correct Answer
A 100 unit apartment building of which 70 units are not rented
An office building containing two empty units and these two empty suites represent 25%
of the total floor space.
A mercantile building with a print shop on the ground floor but the second and third
floors are not being utilized
A new building which has not been rented out at all - ✔✔An office building containing
two empty units and these two empty suites represent 25% of the total floor space. is
correct.
EXPLANATION:
A building is considered vacant when 65% or more of the total floor space is not being
utilized or rented out. The office building with two empty suites is only 25% vacant.
QUESTIONS AND ANSWERS GRADED A+
✔✔Under the Commercial Property Policy, the Pro-rata Liability Clause means:
Answer Choices: Select the Correct Answer
Each insurer pays its limits under the policy.
Neither Insurer Pays
Each insurer pays in accordance to the percentage of its coverage bears to the total
amount of insurance.
A Form of Coinsurance Clause - ✔✔Each insurer pays in accordance to the percentage
of its coverage bears to the total amount of insurance. is correct.
EXPLANATION:
The insurer will not be liable for a greater proportion of a loss than the amount insured
will bear to the whole insurance covering the property against the peril involved,
whether collectible or not. This is often referred to as the "Other Insurance" clause.
✔✔David has damaged his vehicle by striking a tree. He can:
I. Take the car to a repair garage recommended by the insurer.
II. Take the car to a garage of his choice.
III. Accept payment based on the adjuster's estimate.
Answer Choices: Select the Correct Answer
I, II and III
I and II only
I and III only
I only - ✔✔I, II and III is correct.
EXPLANATION:
The choice belongs to the David, the insured.
✔✔Under a farm policy, which of the following would be covered under Coverage A?
Answer Choices: Select the Correct Answer
A structure attached to the dwelling
A structure detached from the dwelling
Dwelling Contents
Livestock - ✔✔A structure attached to the dwelling is correct.
EXPLANATION:
Coverage A covers the dwelling and any attached structures such as a garage.
✔✔Which of the following coverages is included in a Personal Auto Policy without
having to issue an endorsement?
Answer Choices: Select the Correct Answer
Transportation Expenses
Towing and Labor Costs
Miscellaneous Type Vehicles
Named Nonowner - ✔✔Transportation Expenses.
EXPLANATION:
,Transportation expenses are part of the Physical Damage coverage. Some auto policies
still provide this coverage only if the vehicle has been stolen.
✔✔Basic benefits available under a typical workers compensation policy include which
of the following?
I. Medical expenses.
II. Loss of income.
III. Rehabilitation.
IV. Pain and suffering.
Answer Choices: Select the Correct Answer
I, II, and III only.
I and II only.
I, III, and IV only.
I, II, III and IV. - ✔✔I, II, and III only. is correct.
EXPLANATION:
Workers compensation indemnifies an injured or ill worker for direct expenses resulting
from the cause with rehabilitation provided to encourage a worker to return to
productivity.
✔✔Which of the following is NOT included in the California Code of Regulations (CCR)?
Answer Choices: Select the Correct Answer
Selling techniques.
Specific requirements for different types of insurance.
Procedural issues related to agent and insurance company practices.
Conduct hearings and investigations. - ✔✔The correct answer is: Selling techniques. .
EXPLANATION:
Selling techniques are not issues for the California Department of Insurance unless the
techniques violate insurance law.
✔✔Which commercial property form provides the broadest coverage?
Answer Choices: Select the Correct Answer
Basic form
Broad form
Special form
Deluxe form - ✔✔Special form is correct.
EXPLANATION:
In commercial property insurance, the insured selects from three different "causes of
loss" forms - basic, broad, or special. There is no deluxe form. Basic and broad forms
provide named peril protection; special form is all-risk (open-perils), and is therefore the
broadest.
✔✔The authority the public believes the agent has based on the agent's actions is
known as:
Answer Choices: Select the Correct Answer
, Fiduciary Authority
Expressed Authority
Apparent Authority
Implied Authority - ✔✔Apparent Authority.
EXPLANATION:
Apparent authority is the authority the public believes the agent has which seems to be
apparent by the agent's actions.
✔✔In legal terms, the written explanation of how a loss occurred is called a:
Answer Choices: Select the Correct Answer
Loss notification.
Deposition.
Statement.
Proof of loss. - ✔✔Statement. is correct.
EXPLANATION:
This is a statement. A proof of loss lists the damage for which the insured desires
reimbursement.
✔✔Under Workers Compensation rules, for an employee to receive Temporary
Disability Compensation for the first three (3) days of his disability, his disability period
must extend:
Answer Choices: Select the Correct Answer
21 days
30 days
45 days
60 days - ✔✔21 days is correct.
EXPLANATION:
Benefits are retroactive to the day of the injury if the disability lasts 21 days.
✔✔Under the conditions section of the BOP, which of the following would not be
considered vacant?
Answer Choices: Select the Correct Answer
A 100 unit apartment building of which 70 units are not rented
An office building containing two empty units and these two empty suites represent 25%
of the total floor space.
A mercantile building with a print shop on the ground floor but the second and third
floors are not being utilized
A new building which has not been rented out at all - ✔✔An office building containing
two empty units and these two empty suites represent 25% of the total floor space. is
correct.
EXPLANATION:
A building is considered vacant when 65% or more of the total floor space is not being
utilized or rented out. The office building with two empty suites is only 25% vacant.
