CA ADJUSTERS LICENSE EXAM QUESTIONS

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CA ADJUSTERS LICENSE EXAM QUESTIONS

Actual Qs and Ans Expert-Verified Explanation

This Exam contains:

-Guarantee passing score -100 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation Question 1: Which of the following is not an implied warranty under an ocean marine policy?Seaworthiness of the vessel Legality No deviation in the voyage Protection and indemnity

Answer:

The correct answer is: Protection and indemnity.

EXPLANATION:

Protection and indemnity is a form of ocean marine liability coverage and is not an implied warranty.Question 2: The definition of bodily injury includes:

• Death.

II. Sickness.III. Perils of the sea.IV. Slander.I and II only I, II, and III only II, III, and IV only I, II, III, and IV

Answer:

The correct answer is: I and II only.

EXPLANATION:

Bodily injury does not occur as a result of slander, which is a personal injury coverage. Perils of the sea are damages that can occur to property when it is transported across water.Question 3: Which of the following is not "mobile equipment" under the BAP?A self-propelled vehicle with permanently attached street-cleaning equipment.A Caterpillar tractor.A forklift.An electric-powered cart used solely for transportation within a large warehouse.

Answer:

The correct answer is: A self-propelled vehicle with permanently attached street-cleaning equipment.

EXPLANATION:

In the definitions of "mobile equipment" which is usually covered by the CGL policy, a self-propelled vehicle with permanently attached street-cleaning equipment is considered to be an auto and not "mobile equipment".Question 4: The commercial property Business Income Coverage Form covers all of the

following, EXCEPT:

Non-continuing operating expenses.Actions of a civil authority.Loss of business income.Continuing operating expenses.

Answer:

The correct answer is: Non-continuing operating expenses.

EXPLANATION:

The business income forms would not cover those expenses that would discontinue if a loss occurred.Only those expenses that continue are covered. The insured can also elect, in some cases, to exclude ordinary payroll.

Question 5: What is not considered case law?

Law based on new trials yet to be decided Law based on trials that have been decided Law based on higher court rulings Law laid down in the decisions of courts

Answer:

The correct answer is: Law based on new trials yet to be decided.

EXPLANATION:

Case law is law based on prior cases that have been previously decided. It would not apply to new trials yet to be decided.

Question 6: Under Equipment Breakdown coverage, the full replacement cost will be provided if the equipment is repaired within what time period following the loss?

• months

12 months 18 months 24 months

Answer:

The correct answer is: 24 months.

EXPLANATION:

The insured must repair or replace the damaged property within 24 months after the date of the breakdown (unless the time period is extended by the insurer in writing), or recovery of the loss is limited to the lesser of the cost it would have taken to repair the damaged property or the actual cash value of the property at the time of the breakdown.Question 7: In the CGL, which of the following would be included under the definition of a personal injury?A tenant evicted by his landlord sues the landlord for invasion of privacy and wrongful eviction A customer injured in a department store when a sign falls on her and sues the store for medical costs and pain and suffering An employee injured lifting a heavy carton sues his employer for costs An individual fired from her job sues her employer for unemployment benefits

Answer:

The correct answer is: A tenant evicted by his landlord sues the landlord for invasion of privacy and wrongful eviction.

EXPLANATION:

Invasion of privacy and wrongful evictions are part of the personal injury coverage.Question 8: Which of the following most accurately describes the continuing education requirements for a person holding a personal lines license in California?Person lines agents are required to complete 10-hours of continuing education each year.Those licensed prior to January 1, 1992 are exempt from continuing education requirements.Those licensed after January 1, 1992 must, after their first four years of licensure, complete 20 hours of continuing education each year thereafter.Anyone licensed after January 1, 1992 must complete 24 hours of continuing education per year for the first three years of licensure.

Answer:

The correct answer is: Person lines agents are required to complete 10-hours of continuing education each year.

EXPLANATION:

Personal lines agents are required to complete 10-hours of continuing education each year.

Question 9: What is not covered by "extra expense" coverage in commercial property insurance?Rent Payments at a Temporary Location Moving Expenses Overtime Pay Required to Make Repairs Loss of Income

Answer:

The correct answer is: Loss of Income.

EXPLANATION:

Extra Expense Coverage is a form of Business Interruption Coverage. It covers all reasonable extra expenses incurred by the insured in order to continue as nearly as practical the normal operation of a business that has been damaged by an insured peril. It does not cover the loss of income a business may suffer. Other forms like the "loss of income" forms would cover the loss of income.Question 10: What is the loss assessment limit provided by Section II of the homeowner forms?$500

$1,500

$1,000

$2,000

Answer:

The correct answer is: $1,000.

EXPLANATION:

The HO policy under Section II provides $1,000 for loss assessment. This usually occurs when the insured is part of a property owner's association that has suffered a liability loss and assesses the homeowners for part of the loss.Question 11: Which of the following is a not a common exclusion in inland marine insurance?Earth movement Loss of use Unauthorized instructions Dishonest acts by the insured

Answer:

The correct answer is: Earth movement

EXPLANATION:

Common exclusions in commercial inland marine include government action, nuclear hazard, war, loss of use and loss of market, dishonest acts by an insured or its employees, voluntary parting of property by false pretense, and unauthorized instructions to transfer property.