Download California C.A Adjuster License Exam Review Questions and Answers and more Exams Insurance law in PDF only on Docsity!
University of Southern California (Risk
Management and Insurance Program)
State Insurance Claims Adjusters Certification
California C.A 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
Instructions:
- Read each question carefully.
- Answer all questions.
- Use the provided answer sheet to mark your responses.
- Ensure all answers are final before submitting the exam.
- Please answer each question below and click Submit when you have completed the Exam.
- This test has a time limit, The test will save and submit automatically when the time expires
- This is Exam which will assess your knowledge on the course Learning Resources.
Good Luck!
🤔 Hybridgrades101@gmail.com
State Insurance Claims Adjusters Certification 2024- California C.A Adjuster License Exam Review Questions and Answers with Explanations | 100% Pass Guaranteed | Graded A+ | Read All Instructions Carefully and Answer All the Questions Correctly Good Luck: - Which of the following dwelling forms provides coverage for loss of rental income?
- The Basic, Broad and Special Form
- The Basic and Broad Forms only
- The Broad and Special Forms only
- The Special Form only = The =Answer>> is: The Basic, Broad and Special Form. EXPLANATION: All of t he forms provide for rental value coverage. In the DP- 2 and DP-3, it is 20% of the Coverage A limit and is additional coverage. With the DP-1, the 20% coverage reduces the available Coverage A amount on the dwelling. (Note: in North Carolina the percentage is 10%.) The BOP has limitations on the square footage in regard to eligible risks. What is the maximum square footage a building can contain and still be eligible for the policy? 15,000 square feet 20,000 square feet 35,000 square feet 30,000 square feet = The =Answer>> is: 35,000 square feet. Need Writing 🤔Help? We've Got You Covered! ✍️ 100% NO A I or Plagiarism Guaranteed🤔
🤔 Hybridgrades101@gmail.com
kitchen fire made a house untenable, causing the occupants to incur hotel charges EXPLANATION: An indir ect loss is the temporary loss of use caused by a direct property loss. A kitchen fire is a direct loss. If that loss is severe enough to make the house unfit to be used, the insured will need to temporarily find an alternative place to live in until repairs to the house are completed. The cost of that temporary replacement - the hotel charge - is the indirect loss. The "claims-made" form of a CGL policy provides coverage for bodily injury and property damage: That occurs during the policy period regardless of when claim is made. That occurs during the policy period as long as claim is made during the policy period. When damages are first claimed during the policy period regardless of when the occurrence happened, subject to the retroactive date in the policy. All of the responses are true = The =Answer>> is: When damages are first claimed during the policy period regardless of when the occurrence happened, subject to the retroactive date in the policy. EXPLANATION: The clai ms made policy pays for claims made during the policy period regardless of when the damages occur subject, of course, to the retroactive date in the policy. Need Writing 🤔Help? We've Got You Covered! ✍️ 100% NO A I or Plagiarism Guaranteed🤔
🤔 Hybridgrades101@gmail.com
Business Income Protection is designed to: Provide continued income to the policyholder after a covered loss. Provide the same income the business would have received if there had been no loss. Pay what the net profit or loss before income taxes would have been. All of the responses are correct. = The =Answer>> is: All of the responses are correct. EXPLANATION: All of t he responses are correct. This coverage is designed to provide for the policyholder, during the period of business interruption caused by a covered peril, what the business would have produced had no loss occurred. Coverage provides for net income (net profit or loss before income taxes) that would have been earned or incurred and continuing normal operating expenses incurred, including payroll. Which of the following statements is correct? I. Both DP-2 and DP-3 settle losses to covered personal property at actual cash value (ACV). II. Both DP-2 and DP-3 settle partial losses to covered dwellings at replacement value in all situations. I only II only Both I and II Neither I nor II = The =Answer>> is: I only. Need Writing 🤔Help? We've Got You Covered! ✍️ 100% NO A I or Plagiarism Guaranteed🤔
🤔 Hybridgrades101@gmail.com
EXPLANATION:
An innoc ent bystander would not be covered since they are not an employee. Also employees are excluded for injury if they are intoxicated while at work. To receive workers compensation benefits, an employee's bodily injury by disease must be caused by: The conditions of employment An industrial injury Conditions that also exist directly outside the workplace Bodily injury by disease is not covered. = The =Answer>> is: The conditions of employment EXPLANATION: To be co vered, a disease contracted by an employee must arise from the conditions of employment and in the course of employment. This means the disease must be identified with the occupation or place of employment the employee was working in, at the time of exposure. You and your son, who lives with you, are crossing the street when both of you are struck by a drunk driver. The Medical Payments coverage under your auto policy will: Provide coverage for you, but not your son Provide coverage for both you and your son Will not apply as you were pedestrians when struck Will be deferred to the driver of the vehicle that struck you = The =Answer>> is: Provide coverage for both you and your son Need Writing 🤔Help? We've Got You Covered! ✍️ 100% NO A I or Plagiarism Guaranteed🤔
🤔 Hybridgrades101@gmail.com
EXPLANATION:
Auto med ical payments cover the insured and members of the household who are relatives. Under a CGL policy, personal and advertising injury liability coverage does NOT apply to damages resulting from: Slanderous statements made by an advertising firm. Copyright infringement by a department store. Harmful, truthful information published by a realtor. Invasion of an individual's privacy. = The =Answer>> is: Slanderous statements made by an advertising firm. EXPLANATION: An offen se committed by an insured whose business is advertising, broadcasting, publishing or telecasting is specifically excluded by the policy. Which of the following is not excluded under Section II- Liability of the BOP? Aircraft, auto or watercraft bodily injury Professional services bodily injury Pollution property damage Valet parking bodily injury = The =Answer>> is: Valet parking bodily injury. EXPLANATION: Coverage is included for valet parking bodily injury claims. However, the coverage only applies to the ways and means of the insured's premises that are owned or rented. The vehicle must be one that is not owned, rented or loaned to Need Writing 🤔Help? We've Got You Covered! ✍️ 100% NO A I or Plagiarism Guaranteed🤔
🤔 Hybridgrades101@gmail.com
Injury to an employee working after working too much overtime = The =Answer>> is: The spouse of the injured employee sues the employer for loss of consortium. EXPLANATION: Employer 's Liability Insurance under a standard workers compensation policy excludes coverage for injuries outside the coverage territory, employment practices and contractual liability. Coverage would apply, however, to a claim against the employer brought by a related third party, alleging loss-of-services due to a work-related injury to an employee. Who is eligible to submit applications under the California Fair Access to Insurance Requirements? All insurers authorized to transact basic property insurance in California are able to participate. Only agents endorsed by the Plan may participate. Only agents employed by the FAIR Plan may submit applications. Only domestic insurers are able to participate. = The =Answer>> is: All insurers authorized to transact basic property insurance in California are able to participate. EXPLANATION: All insu rers authorized to transact basic property insurance in California are able to participate in the FAIR Plan. A policy has replacement cost for damaged carpet and countertops. If replacement will not match up in quality and Need Writing 🤔Help? We've Got You Covered! ✍️ 100% NO A I or Plagiarism Guaranteed🤔
🤔 Hybridgrades101@gmail.com
appearance with the undamaged property, what must the adjuster do? Replace the damaged carpet and countertops and some of the undamaged property within reasonable site lines. Pay only for the damaged carpet and countertops Replace the carpet throughout the entire building Give the insured credit on the deductible for the mismatched carpet or countertops = The =Answer>> is: Replace the damaged carpet and countertops and some of the undamaged property within reasonable site lines. EXPLANATION: Replace the damaged carpet and countertops and some of the undamaged property within reasonable site lines. What is the percentage that the insured can apply to coverage A of the DP-2 and DP-3 dwelling forms for ordinance or law coverage? 10%. 5%. 20%. 15%. = The =Answer>> is: 10%. EXPLANATION: Up to 10 % of the Coverage A limit may be used to cover increased costs of repair/rebuilding after a covered loss occurs due to the enforcement of any ordinance or law regulating construction, demolition, remodeling, etc. Need Writing 🤔Help? We've Got You Covered! ✍️ 100% NO A I or Plagiarism Guaranteed🤔
🤔 Hybridgrades101@gmail.com
I. $500,000 worth of damage to the property. II. $10,000 damage to the property of another in the insured's care. III. $5,000 in legal fees to defend the insured in this case. The policy will pay a total of: $505,000. $500,000. $510,000. $515,000. = The =Answer>> is: $505,000. EXPLANATION: The maxi mum that can be paid is the limit of the policy. Legal expenses are in addition to the limit of coverage. The insured is insured under a DP-3 dwelling form and is remodeling the dwelling. He does not have a place to store the materials. His next door neighbor permits the insured to store the materials in his garage. The garage is destroyed by fire and the materials are also destroyed. Which of the following applies?
- The policy has a special limit under an extension of coverage that applies.
- Coverage is included under the building coverage and would apply since the materials are next to the insured's premises.
- The policy would not pay the claim since the materials were off the insured's residence premises.
- The materials must be in an enclosed structure for coverage to apply. = The =Answer>> is: Coverage is Need Writing 🤔Help? We've Got You Covered! ✍️ 100% NO A I or Plagiarism Guaranteed🤔
🤔 Hybridgrades101@gmail.com
included under the building coverage and would apply since the materials are next to the insured's premises. EXPLANATION: The poli cy would respond to pay the loss because the policy covers building materials located on or next to the insured premises. All of the following are necessary for Liability coverage to apply under the PAP, except: The insured must not have been drinking. The person liable must be an insured person. The insured must be legally liable for the accident. The damage or injury must be the result of an auto accident. = The =Answer>> is: The insured must not have been drinking. It is not necessary that the insured not have been drinking alcohol at the time of the accident. Coverage would still apply. Under an equipment dealer's form, which of the following would not be covered? Inventory Serviced items Customer's property on the insured's premises Vehicles for highway use = The =Answer>> is: Vehicles for highway use. EXPLANATION: Need Writing 🤔Help? We've Got You Covered! ✍️ 100% NO A I or Plagiarism Guaranteed🤔
🤔 Hybridgrades101@gmail.com
EXPLANATION:
Per the California DOI, adjusting firms must maintain files for the current policy year and the preceding four years, at the company's principal place of business. An adjuster, acting as a fiduciary agent, should do which of the following?
- Not represent interests which are adverse to those of the principal
- All of the responses are correct
- Not seek profit from an outside source as a consequence of actions for and behalf of the principal
- Act with a high degree of fidelity and loyalty to the interests of the principal = The =Answer>> is: All of the responses are correct. EXPLANATION: A fiduci ary agent represents a principal, and therefore must place the principal's financial interests above any other and act with the utmost degree of care to protect the principal's financial interests. Which of the following situations would be covered under bodily injury (BI) liability coverage? Physical Impairment False Arrest Libel Suicide = The =Answer>> is: Physical Impairment Need Writing 🤔Help? We've Got You Covered! ✍️ 100% NO A I or Plagiarism Guaranteed🤔
🤔 Hybridgrades101@gmail.com
EXPLANATION:
Libel, s lander, and suicide are not covered within the definition of bodily injury. Physical impairment is a form of bodily injury. Libel and slander are forms of "personal injury" coverage. Which of the following is a valid reason to deny coverage or charge a higher premium for an automobile policy? Race or religion Adverse driving history or motor vehicle record Sexual orientation Ancestry = The =Answer>> is: Adverse driving history or motor vehicle record EXPLANATION: Adverse driving history or motor vehicle record is the only valid reason of those listed to deny coverage or charge a higher premium. Cars driven by Sue Trent and Jim Higgins were involved in an automobile accident. Ms. Trent's car was a total loss, and she obtained a settlement of $25,000 for her injuries. Scott Finley, Ms. Trent's passenger, was injured and incurred $6,000 in medical expenses. Mr. Higgins, the responsible party, carries Bodily Injury coverage with limits of $15, per person and $30,000 per accident, and Property Damage coverage of $5,000. His policy will pay a maximum of: $26, $29, $35, Need Writing 🤔Help? We've Got You Covered! ✍️ 100% NO A I or Plagiarism Guaranteed🤔
🤔 Hybridgrades101@gmail.com
EXPLANATION:
The DP-3 form provides "open-peril" (all risk of loss) for the dwelling and other structures. The other forms provide "named peril" coverage. Mary intentionally trips her neighbor while the neighbor is trespassing on the insured's property. Although the neighbor is not injured, Mary gives the neighbor $500 in cash to settle any potential liability claim. How will Mary's insurance company most likely respond in this situation? The insurer will reimburse Mary for the entire $500. The insurer will reimburse Mary for $500, less any applicable deductible. The insurer will sue the neighbor for the return of the $ because the neighbor was not injured. The insurer will deny liability coverage because Mary's action was intentional. = The =Answer>> is: The insurer will deny liability coverage because Mary's action was intentional. EXPLANATION: Intentio nal acts are excluded and the company will deny the claim. The only exception to this exclusion is when the insured is attempting to use reasonable force to protect themselves or their property. The insured is liable for $500,000 in damages for a personal injury claim that is covered under the insured's primary liability policy. The primary liability policy has a $300, limit per occurrence. The insured also has a $1 million Need Writing 🤔Help? We've Got You Covered! ✍️ 100% NO A I or Plagiarism Guaranteed🤔
🤔 Hybridgrades101@gmail.com
umbrella liability policy with a $3,000 self insured retention limit. How would this case likely be settled?
- The primary policy would pay $300,000 and the insured would pay $200,000.
- The primary policy would pay $300,000, the insured would pay $3,000, and the umbrella policy would pay $197,000.
- The primary policy would pay nothing; the umbrella policy would pay the full $500,000.
- The primary policy would pay $300,000 and the umbrella policy would pay $200,000. = The =Answer>> is: The primary policy would pay $300,000 and the umbrella policy would pay $200,000. EXPLANATION: Since it is a covered claim under the underlying coverage, the umbrella policy picks up and pays the remaining portion of the claim. An inland marine coverage which covers a store that has an average inventory of $250,000 or less of jewelry would need: A jewelers block policy. Commercial articles floater. Floor plan merchandise coverage form. Bailee's customers policy. = The =Answer>> is: A jewelers block policy EXPLANATION: A jewele rs block policy is designed to cover a store that has an average inventory of $250,000 or less. Need Writing 🤔Help? We've Got You Covered! ✍️ 100% NO A I or Plagiarism Guaranteed🤔
