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HAWAII PUBLIC ADJUSTER EXAM
with complete solutions latest version
In a homeowners policy, Coverage D- Loss of Use will NOT cover:
* Meals out when a home is damaged and not habitable
* loss of rental income if a renter can't stay in the apartment until damages are repaired
* hotel expenses when damage prevents the insured from living in the home
* loss of rental income after damage to a rental unit has been fixed, but no new renter
has been found - CORRECT ANSWER-* loss of rental income after damage to a rental
unit has been fixed, but no new renter has been found
The limit of liability for Coverage B - Other Structures is typically:
* chosen by the insured
* 10% of Coverage A.
* 50% of Coverage A.
* 20% of Coverage A. - CORRECT ANSWER-10% of Coverage A
Dewayne is helping Pat restore his 1967 Mustang. While working in Pat's detached
garage, Dewayne accidentally backs into a rickety storage unit, knocking it over and
causing several tools and cans of paint to come crashing down on himself. Which
homeowners policy coverage will pay for Dewayne's injuries?
* Pat's Liability coverage
* Pat's Other Structures coverage
* Dewayne's Dwelling coverage
* Dewayne's Liability coverage - CORRECT ANSWER-Pat's Liability coverage
An HO-3 policy is intended for - CORRECT ANSWER-an individual
Jerry has a $125,000 DP-2 policy on a house he's currently renting to Stephanie for
$1,700 a month. Jerry pays $200 in utilities each month out of the $1,700 he receives
from Stephanie. One winter day, a heavy snowfall causes part of Jerry's roof to cave in,
causing $12,000 in damage to the dwelling. During the two months it takes to repair the
damage, Jerry suspends utility services to the house and Stephanie goes to stay with
her sister. How much can Jerry receive under Coverage D - Loss of Use? - CORRECT
ANSWER-$3,000
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Andrew's house is struck by lightning. The power surge fries two of the family's laptop
computers, and starts a fire that damages his roof, two living room walls, and a leather
sofa. Which of these damages would fall under Coverage C of Andrew's Homeowners 3
policy? - CORRECT ANSWER-The sofa and laptop computers
Which ISO form is known as the "Condominium Form"? - CORRECT ANSWER-HO-6
Which of the following is NOT an endorsement commonly added to a Dwelling Policy?
* Dwelling Under Construction
* Annual Depreciation
* Theft
* Liability - CORRECT ANSWER-Annual Depreciation
A typical homeowners policy with a $250,000 limit for Coverage A - Dwelling will
automatically have how much coverage for Other Structures (assuming there are no
endorsements)? - CORRECT ANSWER-$25,000
Simon just bought his first home-a cheap fixer-upper in a town where average snowfall
exceeds 80 inches per year. It may be an old house in a run-down neighborhood, but he
still wants to protect his initial investment. What is the cheapest policy option that would
protect Simon's financial interest in his home, even in the brutal winters? - CORRECT
ANSWER-HO-2
A gas line explodes outside of Sarah's Sewing Shop, ruining her new landscaping.
Which coverage extension on her commercial property policy can help Sarah cover the
cost of replacing her damaged trees and shrubs? - CORRECT ANSWER-The Outdoor
Property extension provides up to $1,000 in coverage for damage to television and
radio antennae, detached signs, and trees, plants, or shrubs. Trees, plants, and shrubs
are subject to a maximum of $250 coverage per unit.
In a commercial property policy, which of the following would be paid under the
Business Income Form? - CORRECT ANSWER-Coverage for continuing operating
expenses while damaged property is being repaired.
Lillian owns an antiques shop and Sandy works part time for her. One afternoon, while
Sandy is decorating the window display, she loses her balance and falls backward off a
step stool, breaking some very expensive lamps in the process. What policy condition in
Lillian's commercial property policy provides evidence that this loss may be covered? -
CORRECT ANSWER-Control of Property
Lucille owns her own pottery business, making custom items such as bowls, vases, and
artwork. A fire destroys her entire operation and Lucille files a claim with her insurer.
Which of the following would be covered under Coverage C of the Building and
Personal Property Coverage Form in her commercial property policy? - CORRECT
ANSWER-Lucille's employee's personal belongings stored in her lockerr
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Which of the following perils would NOT be covered by a commercial property policy
with a Causes of Loss - Special Form attached to the Building and Personal Property
Coverage Form?
* LuLu's Fine Jewelry must shut down for a month to repair flood damage.
* When a riot breaks out in the town square, Sam's Boutique is looted and vandalized in
the commotion
* Izzy's Furniture loses an entire warehouse in a fire caused by a lightning strike at a
nearby power plant
* A tornado whips through town, leveling a warehouse belonging to Built Industries -
CORRECT ANSWER-LuLu's Fine Jewelry must shut down for a month to repair flood
damage. Flooding is one of the universal exclusions in the commercial property policy
In which situation would Utility Service - Direct Damage coverage apply?
* John's Car Repair loses power for two days after a hurricane. The resulting loss of
business costs the company $5,000 in lost income
* Brenda's bakery loses power during a snowstorm. When the utility company restores
electricity, there is a power surge that fries Brenda's computer and cash registers.
* Eddies Tractor Supply loses an entire warehouse to a fire when lightning strikes the
roof
* After a tornado knocks out the power in her main office, Josephine the tailor has to
close her doors for a week and loses 5 days of income. - CORRECT ANSWER-Utility
Services - Direct Damage covers losses caused by the interruption of water,
communications, or power services when a utility provider is damaged by a covered
peril. In Brenda's situation, this coverage would apply.
A "risk" in a Boiler & Machinery insurance policy is most commonly referred to as a/an: -
CORRECT ANSWER-Object
DEC Construction is completely remodeling Randall's department store. DEC
Construction is in charge of the project, but hires Mac Electric (an independent
contractor) to complete the electrical work, and requires Mac to have Owners &
Contractors Protective Liability for the job. Who retains ultimate control over this policy?
- CORRECT ANSWER-DEC Construction
Insurance policies are aleatory contracts. This means: - CORRECT ANSWER-
Something is dependent on an uncertain event, a chance occurrence.
Which of the following drivers is MOST likely to purchase insurance through a residual
market program? - CORRECT ANSWER-A driver with a recent arrest for driving while
intoxicated
Which of the following adjusters is acting improperly as a fiduciary agent? - CORRECT
ANSWER-Marjorie is trying to calm a claimant who is very upset, so she tells him that
she is sure the loss is covered, even though she has not yet determined the cause of
loss.
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HAWAII PUBLIC ADJUSTER EXAM
with complete solutions latest version
In a homeowners policy, Coverage D- Loss of Use will NOT cover:
* Meals out when a home is damaged and not habitable
* loss of rental income if a renter can't stay in the apartment until damages are repaired
* hotel expenses when damage prevents the insured from living in the home
* loss of rental income after damage to a rental unit has been fixed, but no new renter
has been found - CORRECT ANSWER-* loss of rental income after damage to a rental
unit has been fixed, but no new renter has been found
The limit of liability for Coverage B - Other Structures is typically:
* chosen by the insured
* 10% of Coverage A.
* 50% of Coverage A.
* 20% of Coverage A. - CORRECT ANSWER-10% of Coverage A
Dewayne is helping Pat restore his 1967 Mustang. While working in Pat's detached
garage, Dewayne accidentally backs into a rickety storage unit, knocking it over and
causing several tools and cans of paint to come crashing down on himself. Which
homeowners policy coverage will pay for Dewayne's injuries?
* Pat's Liability coverage
* Pat's Other Structures coverage
* Dewayne's Dwelling coverage
* Dewayne's Liability coverage - CORRECT ANSWER-Pat's Liability coverage
An HO-3 policy is intended for - CORRECT ANSWER-an individual
Jerry has a $125,000 DP-2 policy on a house he's currently renting to Stephanie for
$1,700 a month. Jerry pays $200 in utilities each month out of the $1,700 he receives
from Stephanie. One winter day, a heavy snowfall causes part of Jerry's roof to cave in,
causing $12,000 in damage to the dwelling. During the two months it takes to repair the
damage, Jerry suspends utility services to the house and Stephanie goes to stay with
her sister. How much can Jerry receive under Coverage D - Loss of Use? - CORRECT
ANSWER-$3,000
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Andrew's house is struck by lightning. The power surge fries two of the family's laptop
computers, and starts a fire that damages his roof, two living room walls, and a leather
sofa. Which of these damages would fall under Coverage C of Andrew's Homeowners 3
policy? - CORRECT ANSWER-The sofa and laptop computers
Which ISO form is known as the "Condominium Form"? - CORRECT ANSWER-HO-6
Which of the following is NOT an endorsement commonly added to a Dwelling Policy?
* Dwelling Under Construction
* Annual Depreciation
* Theft
* Liability - CORRECT ANSWER-Annual Depreciation
A typical homeowners policy with a $250,000 limit for Coverage A - Dwelling will
automatically have how much coverage for Other Structures (assuming there are no
endorsements)? - CORRECT ANSWER-$25,000
Simon just bought his first home-a cheap fixer-upper in a town where average snowfall
exceeds 80 inches per year. It may be an old house in a run-down neighborhood, but he
still wants to protect his initial investment. What is the cheapest policy option that would
protect Simon's financial interest in his home, even in the brutal winters? - CORRECT
ANSWER-HO-2
A gas line explodes outside of Sarah's Sewing Shop, ruining her new landscaping.
Which coverage extension on her commercial property policy can help Sarah cover the
cost of replacing her damaged trees and shrubs? - CORRECT ANSWER-The Outdoor
Property extension provides up to $1,000 in coverage for damage to television and
radio antennae, detached signs, and trees, plants, or shrubs. Trees, plants, and shrubs
are subject to a maximum of $250 coverage per unit.
In a commercial property policy, which of the following would be paid under the
Business Income Form? - CORRECT ANSWER-Coverage for continuing operating
expenses while damaged property is being repaired.
Lillian owns an antiques shop and Sandy works part time for her. One afternoon, while
Sandy is decorating the window display, she loses her balance and falls backward off a
step stool, breaking some very expensive lamps in the process. What policy condition in
Lillian's commercial property policy provides evidence that this loss may be covered? -
CORRECT ANSWER-Control of Property
Lucille owns her own pottery business, making custom items such as bowls, vases, and
artwork. A fire destroys her entire operation and Lucille files a claim with her insurer.
Which of the following would be covered under Coverage C of the Building and
Personal Property Coverage Form in her commercial property policy? - CORRECT
ANSWER-Lucille's employee's personal belongings stored in her lockerr
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Which of the following perils would NOT be covered by a commercial property policy
with a Causes of Loss - Special Form attached to the Building and Personal Property
Coverage Form?
* LuLu's Fine Jewelry must shut down for a month to repair flood damage.
* When a riot breaks out in the town square, Sam's Boutique is looted and vandalized in
the commotion
* Izzy's Furniture loses an entire warehouse in a fire caused by a lightning strike at a
nearby power plant
* A tornado whips through town, leveling a warehouse belonging to Built Industries -
CORRECT ANSWER-LuLu's Fine Jewelry must shut down for a month to repair flood
damage. Flooding is one of the universal exclusions in the commercial property policy
In which situation would Utility Service - Direct Damage coverage apply?
* John's Car Repair loses power for two days after a hurricane. The resulting loss of
business costs the company $5,000 in lost income
* Brenda's bakery loses power during a snowstorm. When the utility company restores
electricity, there is a power surge that fries Brenda's computer and cash registers.
* Eddies Tractor Supply loses an entire warehouse to a fire when lightning strikes the
roof
* After a tornado knocks out the power in her main office, Josephine the tailor has to
close her doors for a week and loses 5 days of income. - CORRECT ANSWER-Utility
Services - Direct Damage covers losses caused by the interruption of water,
communications, or power services when a utility provider is damaged by a covered
peril. In Brenda's situation, this coverage would apply.
A "risk" in a Boiler & Machinery insurance policy is most commonly referred to as a/an: -
CORRECT ANSWER-Object
DEC Construction is completely remodeling Randall's department store. DEC
Construction is in charge of the project, but hires Mac Electric (an independent
contractor) to complete the electrical work, and requires Mac to have Owners &
Contractors Protective Liability for the job. Who retains ultimate control over this policy?
- CORRECT ANSWER-DEC Construction
Insurance policies are aleatory contracts. This means: - CORRECT ANSWER-
Something is dependent on an uncertain event, a chance occurrence.
Which of the following drivers is MOST likely to purchase insurance through a residual
market program? - CORRECT ANSWER-A driver with a recent arrest for driving while
intoxicated
Which of the following adjusters is acting improperly as a fiduciary agent? - CORRECT
ANSWER-Marjorie is trying to calm a claimant who is very upset, so she tells him that
she is sure the loss is covered, even though she has not yet determined the cause of
loss.
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