CA ADJUSTERS CORE EXAMS SET 2025/2026 QUESTIONS
AND ANSWERS GRADED A+
✔✔Additions and Alterations - ✔✔For HO-4 and HO -6 (Renters and condos). Covers
structural changes made at renter's or unit owner's own expense.
✔✔Grave Markers - ✔✔Damage to plots due to covered perils, up to $5,000.
✔✔Coverage E - ✔✔Personal Liability. Pays for bodily injury and property damage to a
third party if insured is negligent.
$100,000 minimum coverage, pays insureds legal defense.
✔✔Coverage F - ✔✔Medical Payments. No fault coverage, for medical expenses
incurred by third-party due to accident. Only necessary, reasonable medical charges,
$1,000 minimum limit.
✔✔Property of Others - ✔✔Pays for damages to other's property if insured causes it.
✔✔First Aid - ✔✔Necessary costs of aid to another.
✔✔Claims Expense - ✔✔Cost to investigate, expenses incurred by the insured, interest
on judgements that accrue after the judgement, premiums for bonds required in a suit
defended by insurer.
✔✔Loss Assessment - Additional Coverages - LIABILITY - ✔✔Up to $1,000 for property
association member. Act committed by an elected director or officer, not a paid
employee for the association.
✔✔Sewer Backup - ✔✔$5,000 coverage, $250 deductible
✔✔Water Back-up and Sump Discharge/Overflow - ✔✔$250 deductible. Does not cover
the equipment.
✔✔Ordinance of Law Endorsement - ✔✔Up to $5,000
✔✔Identity Fraud Expense Endorsement - ✔✔Up to $15,000
✔✔Earthquake Endorsement - ✔✔Up to $5,000 and $250 deductible. Including all
shocks in a 72 hour period. Deductible between 2% and 25%
✔✔Hurricane Endorsement - ✔✔Removes coverage for windstorm, hurricane and hail
losses
, ✔✔Replacement Cost, Inflation Guard and Scheduled Personal Property -
✔✔Replacement cost rather than ACV
Automatic increase in limits
Coverage for jewelry, furs and collectibles.
✔✔DP-1 - ✔✔Basic Form. Named peril. Only covers fire, lightning, and internal
explosion. Endorsements can be added.
✔✔DP-2 - ✔✔Broad Form. Same perils as basic plus more.
✔✔DP-3 - ✔✔Special Form. Open peril. If a peril is not excluded, it is covered.
✔✔DP-3 Exclusions - ✔✔Settling, cracking, shrinking and bulging of patios/foundations
Damage from birds/insects/vermin/domestic animals
Wind or hail damage to antennas/lawns/trees
Ice/Snow damage to awnings, fences, outdoor structures, foundations
Theft of anything not part of the structure
Pollutants
Gradual/Expected loss from wear and tear
Mechanical Breakdown
Inherent vice
Smoke from agricultural or industrial operations
✔✔Coverage A - Dwelling - ✔✔Principal dwelling, attached structures, service
machinery, building materials.
✔✔Coverage B - Dwelling - ✔✔Appurtenant Physical Structures (APS) are structures
that are not attached. Detached garage, guesthouse, shed, gazebo, fence, mailbox,
lamppost.
10% of Coverage A
DP-1, 10% is included in Coverage A
DP-2/3 10% is added to Coverage A
✔✔Coverage B Exclusions - Dwelling - ✔✔Other Structures. Buildings used for
business or farming. Buildings rented to someone who is not a tenant of principal
dwelling. Gravestones/plots/mausoleums.
✔✔Coverage C - Dwelling - ✔✔Personal Property on premises.
Property Off Premises - 10% of coverage C limit.
✔✔Coverage C Exclusions - Dwelling - ✔✔Animals, vehicles, aircraft, hovercraft, boats
(other than rowboats and canoes on-premises), paper/electronic data, credit/debit
cards, money, grave markers, water/steam
✔✔Coverage D - Dwelling - ✔✔Fair Rental Value (FRV)
AND ANSWERS GRADED A+
✔✔Additions and Alterations - ✔✔For HO-4 and HO -6 (Renters and condos). Covers
structural changes made at renter's or unit owner's own expense.
✔✔Grave Markers - ✔✔Damage to plots due to covered perils, up to $5,000.
✔✔Coverage E - ✔✔Personal Liability. Pays for bodily injury and property damage to a
third party if insured is negligent.
$100,000 minimum coverage, pays insureds legal defense.
✔✔Coverage F - ✔✔Medical Payments. No fault coverage, for medical expenses
incurred by third-party due to accident. Only necessary, reasonable medical charges,
$1,000 minimum limit.
✔✔Property of Others - ✔✔Pays for damages to other's property if insured causes it.
✔✔First Aid - ✔✔Necessary costs of aid to another.
✔✔Claims Expense - ✔✔Cost to investigate, expenses incurred by the insured, interest
on judgements that accrue after the judgement, premiums for bonds required in a suit
defended by insurer.
✔✔Loss Assessment - Additional Coverages - LIABILITY - ✔✔Up to $1,000 for property
association member. Act committed by an elected director or officer, not a paid
employee for the association.
✔✔Sewer Backup - ✔✔$5,000 coverage, $250 deductible
✔✔Water Back-up and Sump Discharge/Overflow - ✔✔$250 deductible. Does not cover
the equipment.
✔✔Ordinance of Law Endorsement - ✔✔Up to $5,000
✔✔Identity Fraud Expense Endorsement - ✔✔Up to $15,000
✔✔Earthquake Endorsement - ✔✔Up to $5,000 and $250 deductible. Including all
shocks in a 72 hour period. Deductible between 2% and 25%
✔✔Hurricane Endorsement - ✔✔Removes coverage for windstorm, hurricane and hail
losses
, ✔✔Replacement Cost, Inflation Guard and Scheduled Personal Property -
✔✔Replacement cost rather than ACV
Automatic increase in limits
Coverage for jewelry, furs and collectibles.
✔✔DP-1 - ✔✔Basic Form. Named peril. Only covers fire, lightning, and internal
explosion. Endorsements can be added.
✔✔DP-2 - ✔✔Broad Form. Same perils as basic plus more.
✔✔DP-3 - ✔✔Special Form. Open peril. If a peril is not excluded, it is covered.
✔✔DP-3 Exclusions - ✔✔Settling, cracking, shrinking and bulging of patios/foundations
Damage from birds/insects/vermin/domestic animals
Wind or hail damage to antennas/lawns/trees
Ice/Snow damage to awnings, fences, outdoor structures, foundations
Theft of anything not part of the structure
Pollutants
Gradual/Expected loss from wear and tear
Mechanical Breakdown
Inherent vice
Smoke from agricultural or industrial operations
✔✔Coverage A - Dwelling - ✔✔Principal dwelling, attached structures, service
machinery, building materials.
✔✔Coverage B - Dwelling - ✔✔Appurtenant Physical Structures (APS) are structures
that are not attached. Detached garage, guesthouse, shed, gazebo, fence, mailbox,
lamppost.
10% of Coverage A
DP-1, 10% is included in Coverage A
DP-2/3 10% is added to Coverage A
✔✔Coverage B Exclusions - Dwelling - ✔✔Other Structures. Buildings used for
business or farming. Buildings rented to someone who is not a tenant of principal
dwelling. Gravestones/plots/mausoleums.
✔✔Coverage C - Dwelling - ✔✔Personal Property on premises.
Property Off Premises - 10% of coverage C limit.
✔✔Coverage C Exclusions - Dwelling - ✔✔Animals, vehicles, aircraft, hovercraft, boats
(other than rowboats and canoes on-premises), paper/electronic data, credit/debit
cards, money, grave markers, water/steam
✔✔Coverage D - Dwelling - ✔✔Fair Rental Value (FRV)
