CA ADJUSTERS EXAMINATION TEST 2025/2026
QUESTIONS AND ANSWERS GRADED A+
✔✔Comparative Negligence - ✔✔Plaintiff's responsibility affects judgment in civil
lawsuits.
✔✔Compensatory Damages - ✔✔Money awarded for tangible and intangible damages.
✔✔Damages - General - ✔✔Compensatory damages for emotional losses post-trial.
✔✔Damages - Special - ✔✔Compensatory damages for physical damage pre-trial.
✔✔Competence - ✔✔All parties in a contract must be legally and mentally capable.
✔✔Complaint - ✔✔Civil lawsuit initiation for financial relief from damages.
✔✔Computer Fraud Coverage Form - ✔✔Commercial crime policy covering theft via
computer.
✔✔Concealment - ✔✔Withholding material facts from an insurer.
✔✔Common Policy Misrepresentation and Fraud Provision - ✔✔Insurer can void policy
for false information.
✔✔Renewable Policy - ✔✔Insurer can cancel coverage based on specified conditions.
✔✔Conditions - ✔✔Policy section limiting insurer's promise to pay.
✔✔Commercial Condominium Coverage Form - ✔✔Property coverage for condo
buildings and business items.
✔✔Consideration - ✔✔All parties must offer something of value in a contract.
✔✔Contract - ✔✔Voluntary agreement creating legal obligations.
✔✔Contract Law - ✔✔Regulates agreement making and enforcement.
✔✔Contribution by Equal Shares - ✔✔Insurers share loss equally up to policy limits.
✔✔Contributory Negligence - ✔✔Plaintiff not compensated if responsible for loss.
✔✔Controlled Line Floaters - ✔✔Standardized forms disclosing rates for property
coverage.
,✔✔Copayment - ✔✔Amount policyholder pays per health insurance claim.
✔✔Cost and Freight (CFR) - ✔✔Seller pays shipping, buyer pays insurance for goods.
✔✔Cost, Insurance, and Freight (CIF) - ✔✔Seller pays freight and insurance until goods
reach buyer.
✔✔Coverages - ✔✔Extent of protection provided by an insurance policy.
✔✔Crime - ✔✔Offense against government requiring public satisfaction.
✔✔Criminal - ✔✔Convicted individual of a criminal act.
✔✔Crop Hail Insurance - ✔✔Private crop yield insurance without government subsidy.
✔✔Crop Insurance - ✔✔Protects farmer's financial investment in crops.
✔✔Crop Revenue Insurance - ✔✔Combines crop-yield and price insurance for crop
value protection.
✔✔Crop Yield Insurance - ✔✔Covers physical losses to actual crops.
✔✔Customer Representative (Insurance) - ✔✔Salaried employee assisting agents in
client transactions.
✔✔Customized Equipment Personal Auto Endorsement - ✔✔PAP endorsement for
additional coverage on valuable equipment.
✔✔Cyber and Privacy Professional Liability Insurance - ✔✔Coverage for data breach
losses, privacy breach costs.
✔✔Dangerous Instrumentality Doctrine - ✔✔Holds users of dangerous products 100%
liable for damages.
✔✔Declarations Page - ✔✔First page summarizing policy details.
✔✔Declaratory Judgement Action - ✔✔Court clarifies legal relationship and rights of
parties.
✔✔Default Judgement - ✔✔Court decision in favor of plaintiff due to defendant's
absence.
✔✔Depreciation - ✔✔Property value decline due to wear or loss of usefulness.
, ✔✔Depreciation - Accumulated - ✔✔An item's replacement cost divided by the number
of years in its expected lifespan.
✔✔Depreciation - Annual - ✔✔An item's replacement cost divided by the number of
years in its expected lifespan.
✔✔Diligence and Dispatch - ✔✔Adjuster's obligation to act promptly and carefully in
settling claims to avoid disciplinary action.
✔✔Direct Writing Agents - ✔✔Insurance agents employed by a single agency to sell
insurance directly to customers.
✔✔Disclosure - ✔✔An adjuster's duty to reveal any financial interests related to an
adjusting transaction.
✔✔Discoverable - ✔✔Information that can be demanded as evidence in a court of law.
✔✔Discovery Form - ✔✔A commercial crime form covering losses discovered during
the policy period.
✔✔Doctrine of Reasonable Expectations - ✔✔Contract must provide coverage
expected by the policyholder, regardless of policy language.
✔✔DP-1 - ✔✔Basic Dwelling Policy covering direct physical loss by fire, lightning, and
internal explosion.
✔✔DP-2 - ✔✔Broad Dwelling Policy covering DP-1 perils and additional Extended and
Broad Form perils.
✔✔DP-3 - ✔✔Special Dwelling Policy offering open-peril coverage for structures and
named peril for personal property.
✔✔Dwelling Policy (DP) - ✔✔Property coverage for those ineligible for homeowners
insurance.
✔✔Electronic Data Processing (EDP) - ✔✔Endorsement covering loss of computer
equipment, data systems, and related expenses.
✔✔Eligibility - ✔✔Conditions in insurance policies for policyholders to qualify for
coverage.
✔✔Employee Theft Coverage Form - ✔✔Commercial crime coverage for losses from
theft by employees.
QUESTIONS AND ANSWERS GRADED A+
✔✔Comparative Negligence - ✔✔Plaintiff's responsibility affects judgment in civil
lawsuits.
✔✔Compensatory Damages - ✔✔Money awarded for tangible and intangible damages.
✔✔Damages - General - ✔✔Compensatory damages for emotional losses post-trial.
✔✔Damages - Special - ✔✔Compensatory damages for physical damage pre-trial.
✔✔Competence - ✔✔All parties in a contract must be legally and mentally capable.
✔✔Complaint - ✔✔Civil lawsuit initiation for financial relief from damages.
✔✔Computer Fraud Coverage Form - ✔✔Commercial crime policy covering theft via
computer.
✔✔Concealment - ✔✔Withholding material facts from an insurer.
✔✔Common Policy Misrepresentation and Fraud Provision - ✔✔Insurer can void policy
for false information.
✔✔Renewable Policy - ✔✔Insurer can cancel coverage based on specified conditions.
✔✔Conditions - ✔✔Policy section limiting insurer's promise to pay.
✔✔Commercial Condominium Coverage Form - ✔✔Property coverage for condo
buildings and business items.
✔✔Consideration - ✔✔All parties must offer something of value in a contract.
✔✔Contract - ✔✔Voluntary agreement creating legal obligations.
✔✔Contract Law - ✔✔Regulates agreement making and enforcement.
✔✔Contribution by Equal Shares - ✔✔Insurers share loss equally up to policy limits.
✔✔Contributory Negligence - ✔✔Plaintiff not compensated if responsible for loss.
✔✔Controlled Line Floaters - ✔✔Standardized forms disclosing rates for property
coverage.
,✔✔Copayment - ✔✔Amount policyholder pays per health insurance claim.
✔✔Cost and Freight (CFR) - ✔✔Seller pays shipping, buyer pays insurance for goods.
✔✔Cost, Insurance, and Freight (CIF) - ✔✔Seller pays freight and insurance until goods
reach buyer.
✔✔Coverages - ✔✔Extent of protection provided by an insurance policy.
✔✔Crime - ✔✔Offense against government requiring public satisfaction.
✔✔Criminal - ✔✔Convicted individual of a criminal act.
✔✔Crop Hail Insurance - ✔✔Private crop yield insurance without government subsidy.
✔✔Crop Insurance - ✔✔Protects farmer's financial investment in crops.
✔✔Crop Revenue Insurance - ✔✔Combines crop-yield and price insurance for crop
value protection.
✔✔Crop Yield Insurance - ✔✔Covers physical losses to actual crops.
✔✔Customer Representative (Insurance) - ✔✔Salaried employee assisting agents in
client transactions.
✔✔Customized Equipment Personal Auto Endorsement - ✔✔PAP endorsement for
additional coverage on valuable equipment.
✔✔Cyber and Privacy Professional Liability Insurance - ✔✔Coverage for data breach
losses, privacy breach costs.
✔✔Dangerous Instrumentality Doctrine - ✔✔Holds users of dangerous products 100%
liable for damages.
✔✔Declarations Page - ✔✔First page summarizing policy details.
✔✔Declaratory Judgement Action - ✔✔Court clarifies legal relationship and rights of
parties.
✔✔Default Judgement - ✔✔Court decision in favor of plaintiff due to defendant's
absence.
✔✔Depreciation - ✔✔Property value decline due to wear or loss of usefulness.
, ✔✔Depreciation - Accumulated - ✔✔An item's replacement cost divided by the number
of years in its expected lifespan.
✔✔Depreciation - Annual - ✔✔An item's replacement cost divided by the number of
years in its expected lifespan.
✔✔Diligence and Dispatch - ✔✔Adjuster's obligation to act promptly and carefully in
settling claims to avoid disciplinary action.
✔✔Direct Writing Agents - ✔✔Insurance agents employed by a single agency to sell
insurance directly to customers.
✔✔Disclosure - ✔✔An adjuster's duty to reveal any financial interests related to an
adjusting transaction.
✔✔Discoverable - ✔✔Information that can be demanded as evidence in a court of law.
✔✔Discovery Form - ✔✔A commercial crime form covering losses discovered during
the policy period.
✔✔Doctrine of Reasonable Expectations - ✔✔Contract must provide coverage
expected by the policyholder, regardless of policy language.
✔✔DP-1 - ✔✔Basic Dwelling Policy covering direct physical loss by fire, lightning, and
internal explosion.
✔✔DP-2 - ✔✔Broad Dwelling Policy covering DP-1 perils and additional Extended and
Broad Form perils.
✔✔DP-3 - ✔✔Special Dwelling Policy offering open-peril coverage for structures and
named peril for personal property.
✔✔Dwelling Policy (DP) - ✔✔Property coverage for those ineligible for homeowners
insurance.
✔✔Electronic Data Processing (EDP) - ✔✔Endorsement covering loss of computer
equipment, data systems, and related expenses.
✔✔Eligibility - ✔✔Conditions in insurance policies for policyholders to qualify for
coverage.
✔✔Employee Theft Coverage Form - ✔✔Commercial crime coverage for losses from
theft by employees.
