California Adjuster Test Questions With
Correct Answers
Business Owner Package (BOP) - CORRECT ANSWER✔✔-bundles property,
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liability, and income protection in a single package. Sometimes referred to as
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homeowner's insurance for businesses. | | |
Is inflation coverage (guard) feature typically found in a BOP? - CORRECT
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ANSWER✔✔-Yes
What is the value feature in a BOP? - CORRECT ANSWER✔✔-Replacement Cost
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What are the two basic types of coverage in a Commercial Package Policy? -
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CORRECT ANSWER✔✔-Liability and Property coverages
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What is a surety bond? - CORRECT ANSWER✔✔-A contract establishing liability
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including at least 3 parties:
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1. The PRINCIPAL who agrees to fulfill an obligation, 2. the OBLIGEE to whom the
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principal owes the obligation, and 3. the SURETY who guarantees to pay the
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obligee if the principal defaults.
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Surety - CORRECT ANSWER✔✔-The party that becomes legally liable for debt,
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failure or default of another party.
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, Indemnitor - CORRECT ANSWER✔✔-Fourth party in a surety bond who agrees to
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reimburse the surety for losses sustained if the principal defaults.
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Limited Cooking and Fast Food Restaurant qualifications for a BOP. - CORRECT
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ANSWER✔✔-1. 7,500 sq. ft. or fewer | | | | | |
2. Max seating of 75 for limited cooking and 150 for fast food
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3. Beer and wine sales no more than 25% annual income
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4. No liquor sales
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5. Has Maintenance of fire extinguishing equipment
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Self Storage Facilities qualifications for a BOP. - CORRECT ANSWER✔✔-1.
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Maximum of two stories | | |
2. No storage of pollutants, waste, chemicals, or industrial materials.
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What types of businesses are NOT qualified for a BOP? - CORRECT ANSWER✔✔-
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1. Car dealerships, service stations, repair shops
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2. Parking lots, garages
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3. Amusement parks
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4. Bars, nightclubs, and the like
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5. Banks and similar institutions
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6. Manufacturing and servicing businesses (except those specifically eligible)
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7. Condominium associations (except residential and office).
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What is the maximum stories for an office building to be eligible for a BOP? -
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CORRECT ANSWER✔✔-Six stories | |
Correct Answers
Business Owner Package (BOP) - CORRECT ANSWER✔✔-bundles property,
| | | | | | | |
liability, and income protection in a single package. Sometimes referred to as
| | | | | | | | | | | |
homeowner's insurance for businesses. | | |
Is inflation coverage (guard) feature typically found in a BOP? - CORRECT
| | | | | | | | | | | |
ANSWER✔✔-Yes
What is the value feature in a BOP? - CORRECT ANSWER✔✔-Replacement Cost
| | | | | | | | | | |
What are the two basic types of coverage in a Commercial Package Policy? -
| | | | | | | | | | | | | |
CORRECT ANSWER✔✔-Liability and Property coverages
| | | |
What is a surety bond? - CORRECT ANSWER✔✔-A contract establishing liability
| | | | | | | | | | |
including at least 3 parties:
| | | |
1. The PRINCIPAL who agrees to fulfill an obligation, 2. the OBLIGEE to whom the
| | | | | | | | | | | | | | |
principal owes the obligation, and 3. the SURETY who guarantees to pay the
| | | | | | | | | | | | |
obligee if the principal defaults.
| | | |
Surety - CORRECT ANSWER✔✔-The party that becomes legally liable for debt,
| | | | | | | | | | |
failure or default of another party.
| | | | |
, Indemnitor - CORRECT ANSWER✔✔-Fourth party in a surety bond who agrees to
| | | | | | | | | | | |
reimburse the surety for losses sustained if the principal defaults.
| | | | | | | | |
Limited Cooking and Fast Food Restaurant qualifications for a BOP. - CORRECT
| | | | | | | | | | | |
ANSWER✔✔-1. 7,500 sq. ft. or fewer | | | | | |
2. Max seating of 75 for limited cooking and 150 for fast food
| | | | | | | | | | | | |
3. Beer and wine sales no more than 25% annual income
| | | | | | | | | | |
4. No liquor sales
| | | |
5. Has Maintenance of fire extinguishing equipment
| | | | | |
Self Storage Facilities qualifications for a BOP. - CORRECT ANSWER✔✔-1.
| | | | | | | | | |
Maximum of two stories | | |
2. No storage of pollutants, waste, chemicals, or industrial materials.
| | | | | | | | |
What types of businesses are NOT qualified for a BOP? - CORRECT ANSWER✔✔-
| | | | | | | | | | | |
1. Car dealerships, service stations, repair shops
| | | | | |
2. Parking lots, garages
| | |
3. Amusement parks
| |
4. Bars, nightclubs, and the like
| | | | |
5. Banks and similar institutions
| | | |
6. Manufacturing and servicing businesses (except those specifically eligible)
| | | | | | | |
7. Condominium associations (except residential and office).
| | | | | |
What is the maximum stories for an office building to be eligible for a BOP? -
| | | | | | | | | | | | | | | |
CORRECT ANSWER✔✔-Six stories | |
