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University of Southern California (Risk
Management and Insurance Program)
State Insurance Claims Adjusters Certification
California Claims Adjuster Exam
Course Title and Number: Claims Adjuster Exam Exam Title: Board Exam Exam Date: Exam 2024- 2025 Instructor: [Insert Instructor’s Name] Student Name: [Insert Student’s Name] Student ID: [Insert Student ID]
Examination
180 minutes
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State Insurance Claims Adjusters Certification 2024- California C.A Adjuster Exam Review Questions and Correct Answers | 100% Pass Guaranteed | Graded A+ | Read All Instructions Carefully and Answer All the Questions Correctly Good Luck: - The process where by a mutual insurer becomes a stock company is called - =Answer>> Demutualization The process whereby a stock company a mutual insurer is called - =Answer>> Mutualization The provision in a property policy which states that the insured has been paid up to their insurable interest is - =Answer>> Valuation clause Business Owner Package (BOP) - =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? - =Answer>> Yes What is the value feature in a BOP? - =Answer>> Replacement Cost What are the two basic types of coverage in a Commercial Package Policy? - =Answer>> Liability and Property coverages Need Writing 🤔Help? We've Got You Covered! ✍️ 100% NO A I or Plagiarism Guaranteed🤔
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- Amusement parks
- Bars, nightclubs, and the like
- Banks and similar institutions
- Manufacturing and servicing businesses (except those specifically eligible)
- Condominium associations (except residential and office). What is the maximum stories for an office building to be eligible for a BOP? - =Answer>> Six stories Major Sections of a BOP? - =Answer>> 1. Property
- Liability
- Common Policy Conditions What is the claim form basis used for BOP liability? - =Answer>> The occurrence form is used, covering damages occurring during the policy term, no matter when the claim is filed. In a BOP, what is the General Aggregate Limit in relation to the per occurrence limit? - =Answer>> The General Aggregate Limit is twice the per occurrence limit. The Business Owners Policy is ... - =Answer>> a type of Commercial Package Policy (CPP) for small to medium sized businesses integrating multiple lines of insurance into one insurance package. In a BOP policy with protective systems, if the system becomes inoperative the insured must notify the insurance Need Writing 🤔Help? We've Got You Covered! ✍️ 100% NO A I or Plagiarism Guaranteed🤔
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company within ... - =Answer>> 48 hours, or the coverage will be suspended and possibly denied. Can inflation guard coverage be added to a BOP at no extra cost? - =Answer>> Yes, so can business income, extra expense, and pollution cleanup as additional coverages with no extra cost. What is accounts receivable coverage in a BOP? - =Answer>> It provides coverage for the money the insured expects to collect, but cannot because of damage to accounting records caused by a covered peril. A BOP provides loss of income coverage on an actual loss sustained basis for how long? - =Answer>> 12 months Can a gas station or convenience store include a car wash in its BOP? - =Answer>> No, a car wash is an excluded operation. Are costs associated with defending and investigating a claim against the insured included as Supplementary Payments? - =Answer>> Yes. What is an anti-concurrent causation (ACC) clause? - =Answer>> The clause effectively eliminates coverage during catastrophic situations where everything seems to happens at once. In catastrophes such as earthquakes or hurricanes, a single excluded cause of loss in the chain of events could lead to denial of coverage. However, California adheres to the effective proximate cause doctrine. Need Writing 🤔Help? We've Got You Covered! ✍️ 100% NO A I or Plagiarism Guaranteed🤔
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Business Auto Policy coverage Symbol # 3 includes: - =Answer>> Owned private passenger vehicles, not trucks, buses, etc. Business Auto Policy coverage Symbol # 4 includes: - =Answer>> Owned vehicles other than passenger: trucks, buses, specialty Business Auto Policy coverage Symbol # 5 includes: - =Answer>> Owned autos subject to no-fault insurance Business Auto Policy coverage Symbol # 8 includes: - =Answer>> Hired Autos Business Auto Policy coverage Symbol # 9 includes: - =Answer>> Non-owned vehicles (liability coverage) Business Auto Policy - new vehicles, what is required for coverage? - =Answer>> Under Symbol # 1 no reporting is required, Under Symbol # 7 (specifically described auto) the insured must report getting the new auto within 30 days in order to be covered. Business Auto Policy coverage # 7 includes: - =Answer>> Specifically described autos According to the Business Auto Policy (BAP) what is not included in the "auto" definition? - =Answer>> Mobile equipment such as tractors or fork-lifts not designed for use on public roads. Need Writing 🤔Help? We've Got You Covered! ✍️ 100% NO A I or Plagiarism Guaranteed🤔
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Garage-Keepers Policy Symbol # 30 includes: - =Answer>> Autos left for Service, Repair, Storage,and Safekeeping (mandatory for garages). Garage-Keepers Policy Symbol # 31 includes: - =Answer>> Dealers Autos A Trucker is: - =Answer>> An individual or business that takes possession of property for the purpose of transport Trucker Insurance Policy Symbols include: - =Answer>> Symbols 41 through 49 Motor Carrier is: - =Answer>> One who transports goods OR passengers. Is a bailee agreement created by parking in a public garage? - =Answer>> No Comprehensive coverage covers: - =Answer>> Damages not caused by collision, such as hail, lightening, fire, and falling objects. Commercial Crime Insurance covers: - =Answer>> Losses caused by outside sources or employees. It includes theft, forgery, fraud, and other illegal activity. What are the two forms of Commercial Crime Insurance? - =Answer>> Loss Sustained Form: covers losses that occur during the policy period. Need Writing 🤔Help? We've Got You Covered! ✍️ 100% NO A I or Plagiarism Guaranteed🤔
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How are losses valued under a Commercial Crime Policy for money, securities, and property? - =Answer>> Money is valued at face value. Securities are valued by their value on the day of the loss. Property is valued at the lesser of cost to repair or replace. Equipment Breakdown Protection Coverage Form is more commonly known as: - =Answer>> Boiler and Machinery Insurance Boiler and Machinery Insurance does not include: - =Answer>> Liability coverage Under Boiler and Machinery Insurance, "breakdown" does not include: - =Answer>> Malfunction due to misalignment, adjustment, calibration. Computer defects, errors, viruses. Leaks from valves, seals, fittings. Damage to structures or foundations that support the covered equipment. Under Boiler and Machinery Insurance, "breakdown" means: - =Answer>> Direct physical damage to covered equipment which necessitates repair or replacement and results from accidental failure. Equipment Breakdown Protection protects "objects." What is an "object"? - =Answer>> A specified piece of equipment covered by the Equipment Breakdown Protection Coverage Form. If a company has 20 baking ovens, each oven is an "object" covered by the policy. Need Writing 🤔Help? We've Got You Covered! ✍️ 100% NO A I or Plagiarism Guaranteed🤔
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Under Equipment Breakdown Protection Spoilage coverage, under what conditions must the spoliation occur and what property is covered? - =Answer>> The spoliation must be due to lack or excess of power, light, heat, steam, or refrigeration. The insured must own or be legally liable for the spoiled property. Is equipment buried in the ground covered under Equipment Breakdown Protection Coverage Form? - =Answer>> No. What does Expediting Expense coverage do under Equipment Breakdown Protection Coverage Form? - =Answer>> Provides indemnification for temporary repairs and costs associated with expediting, or speeding up, permanent repairs or replacement. What is the period of restoration under Equipment Breakdown Coverage? - =Answer>> At the time of the breakdown or 24 hours before notification to the insured, whichever is later. What is the minimum limit on most Equipment Breakdown policies? - =Answer>> $500, Errors and Omissions coverage in an Equipment Breakdown Protection policy: - =Answer>> Provides coverage for damage that would not otherwise be covered because Need Writing 🤔Help? We've Got You Covered! ✍️ 100% NO A I or Plagiarism Guaranteed🤔
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departments of insurance. NFIP is issued by the federal government and claims are handled by the federal government. WYO (Write Your Own) Program - =Answer>> Private Insurers sell and underwrite policies based on federal government guidelines. It is more efficient and now generates 90% of flood policies. NFIP Dwelling Form - =Answer>> For 1 to 4 family dwellings, or 1 to 4 family condo units and residential contents. Flood Coverage D - Increased Cost of Compliance (ICC) - =Answer>> Covers cost of complying with floodplain management law and ordinances concerning repair of reconstruction. Coverage D limit is $30,000. When added to Coverage A, cannot exceed $250,000 for a dwelling or $500,000 for a commercial structure. Standard Flood Insurance Policy (SFIP) Duties - =Answer>> Immediately notify insurer of flood loss Organize damaged property for adjuster's examination Put account books, records, etc. in a safe place for evaluation Submit an NFIP Proof of Loss within 60 days of loss SFIP Loss Payment Condition - =Answer>> The insurer has 60 days from when it receives a proof of loss to pay the claim. What is the Special Loss Settlement under a flood policy? - =Answer>> It pays the lowest of: Need Writing 🤔Help? We've Got You Covered! ✍️ 100% NO A I or Plagiarism Guaranteed🤔
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- The dwelling's replacement cost
- 1.5 times the dwelling's actual cash value
- The policy limit Flood insurance Coverage A covers how much for a detached garage? - =Answer>> It will pay 10% of the policy coverage limit for detached garages. The two forms of excess liability policies are: - =Answer>> Follow Form: follows a base policy to the letter Stand Alone: covers what the base policy covers, but sets its own exclusions and limitations to coverage. What is Self-Insured Retention (SIR)? - =Answer>> It is a deductible in an umbrella policy. If the base policy does not cover the loss, you will have to pay the amount of the base policy as a deductible before the umbrella policy will pay out. Umbrella Policy - =Answer>> Extra liability insurance that is able to "drop down" to fill coverage gaps in underlying policies. Adjusting - =Answer>> The process of comparing a claimant's losses to the promises made in an insurance policy. What is the effect of ambiguity in an insurance contract? - =Answer>> Typically any ambiguity favors the insured because the policy was drafted by the insurer. Need Writing 🤔Help? We've Got You Covered! ✍️ 100% NO A I or Plagiarism Guaranteed🤔
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Absolute risk(liability) is imposed - =Answer>> When there is negligence whether proven or not X is in an accident with Y. X suffers $5000 of damage but it is determined that X is 60% responsible for the accident. How much would X receive under CONTRIBUTORY negligence rules? - =Answer>> $ what is the main purpose of tort law - =Answer>> to determine financial responsibility for damage what of the following is not considered an intentional tort? - =Answer>> Auto accident Which of the following statements is true regarding compensatory damages? - =Answer>> There is usually no direct correlation between the amount of general and special damages awarded to the victim The insurer decides not to renew an insured's personal auto policy. How much notice must the insurer provide to the insured - =Answer>> 30 days an insured's loss reserve for a claim is an estimate of the amount insurer will pay for present and future loss, which of the following is an example of loss prevention - =Answer>> a homeowner decides not to install a pool in the backyard which of the following describes the act of making a false entry in any book statement of report of any insurer with Need Writing 🤔Help? We've Got You Covered! ✍️ 100% NO A I or Plagiarism Guaranteed🤔
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the intent to device any examiner lawfully appointed to examine the insured's - =Answer>> an unfair practice a person can base his/her claim for liability on the basis of all of the following EXCEPT - =Answer>> breach of liability the term "assignment" refers to - =Answer>> the transfer of the insured's interest in a policy to another party the term "subrogation" refers to - =Answer>> the insured's right to recover payment from a responsible 3rd party insurer's right to recover the payment of the claim after they paid the insured for their property losses a negligent 3rd party is know as, - =Answer>> subrogation an insurance deductible is - =Answer>> the amount of covered expense that the insured pays before the insurer pays, all of the following are requirements for a notice by mail to an insured by insurer except - =Answer>> notice must be sent with return receipt required which of the following is considered special damages - =Answer>> Compensation for time away from work Which advisory organization(s) develop forms for the standard market? - =Answer>> Insurance service office and American association of insurances Need Writing 🤔Help? We've Got You Covered! ✍️ 100% NO A I or Plagiarism Guaranteed🤔
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The amount to replace property with " like property of the same quality and construction" is the properties - =Answer>> Replacement value All of the following are considered intentional torts - =Answer>> except, Assult What is the difference between per accident limit in a split limit policy and single limits - =Answer>> There is no difference The intentional relinquishment of known right is - =Answer>> Waivier Which type of loss is a business retirement or disability of key employee, exposed to death retirement or disability of key employee, - =Answer>> Personnel loss exposure The amount to replace an insured's damaged property - =Answer>> less depreciation, is know as the, Actual cash value The commercial property conditions included a condition called " liberalization". The effect of this condition is - =Answer>> To automatically apply broader coverage to the commercial property coverage part if a policy form revision would broaden coverage without an addition premium In a commercial lines program policy common policy condition do not include which of the following as a condition?, - =Answer>> Perils insured Need Writing 🤔Help? We've Got You Covered! ✍️ 100% NO A I or Plagiarism Guaranteed🤔
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A possibility of financially loss resulting from the ownership of property is know as - =Answer>> insurable interest Laura is driving her own car on behalf of her employer Laura's negligent operation of her car injures a member of public. The employer may be held liable because of what is called., - =Answer>> Vicarious liability Type of exposure can be best defined as a condition or situation where the exposure to financial loss is presented to a business owner by the injury - =Answer>> disability, death, sickness, of valuable employee, Personnel loss exposure Which of the following is also know as a human loss exposure - =Answer>> Personal loss exposure Which of the following best characterize a speculative risk? - =Answer>> A situation that offers the possibility for a loss or gain In the state of CA no rate will remain in effect if it is considered to be any of the following, EXCEPT - =Answer>> Impartial What course of action does a party to a contract have if the other party is found to be breach of that contract - =Answer>> Damage for breach, reasonable attorney fee and cost Need Writing 🤔Help? We've Got You Covered! ✍️ 100% NO A I or Plagiarism Guaranteed🤔
