CA ADJUSTERS STUDY GUIDE 2025/2026 QUESTIONS AND
ANSWERS GRADED A+
✔✔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.
✔✔A ship has negligently collided with another ship and caused severe damage. What
coverage would apply to cover this claim?
Answer Choices: Select the Correct Answer
Hull insurance with the "running down clause".
Protection and Indemnity.
Inchmaree clause.
Towage clause. - ✔✔Hull insurance with the "running down clause". is correct.
EXPLANATION:
Hull insurance with the "running down clause" would respond to cover this claim.
✔✔A license issued by the Commissioner that contains certain conditions is called:
Answer Choices: Select the Correct Answer
A restricted license.
A temporary license.
A surplus lines license.
A non-restricted license. - ✔✔A restricted license. is correct.
EXPLANATION:
A restricted license is a license that is issued by the Commissioner with reasonable
restrictions on the license and license holder.
✔✔An insured has $500 cash stolen from her home. How much can she collect under a
standard homeowner policy?
Answer Choices: Select the Correct Answer
$500
$200
0
ANSWERS GRADED A+
✔✔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.
✔✔A ship has negligently collided with another ship and caused severe damage. What
coverage would apply to cover this claim?
Answer Choices: Select the Correct Answer
Hull insurance with the "running down clause".
Protection and Indemnity.
Inchmaree clause.
Towage clause. - ✔✔Hull insurance with the "running down clause". is correct.
EXPLANATION:
Hull insurance with the "running down clause" would respond to cover this claim.
✔✔A license issued by the Commissioner that contains certain conditions is called:
Answer Choices: Select the Correct Answer
A restricted license.
A temporary license.
A surplus lines license.
A non-restricted license. - ✔✔A restricted license. is correct.
EXPLANATION:
A restricted license is a license that is issued by the Commissioner with reasonable
restrictions on the license and license holder.
✔✔An insured has $500 cash stolen from her home. How much can she collect under a
standard homeowner policy?
Answer Choices: Select the Correct Answer
$500
$200
0
