CALIFORNIA ADJUSTER LICENSE EXAM QUESTIONS AND ANSWERS LATEST UPDATE

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 correct answer is: Vehicles for highway use.

EXPLANATION:
Inland marine forms provide coverage for the insured's goods as well as property of others, but they do not cover automobiles.

Which of the following components MUST be included in the definition of a hostile fire:

I. Rapid oxidation accompanied by a flame or at least a glow.
II. Must be sudden and unexpected.
III. Must have been intentionally set by the insured.
IV. Must spread beyond its intended place.

I, II and IV only
I, II, III and IV
I and II only
I, III and IV only
The correct answer is: I, II and IV only.

EXPLANATION:
This definition must include three of the four components expressed here. In addition, a hostile fire is one that is spread beyond its intended place or a place not intended for it.

For how long must an adjusting firm maintain its claim files?

For as long as any statute of limitations
For the current year and 10 prior years
For the current year and 4 prior years
For the current year only
The correct answer is: For the current year and 4 prior years.

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 correct answer is: All of the responses are correct .

EXPLANATION:
A fiduciary 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 correct answer is: Physical Impairment

EXPLANATION:
Libel, slander, 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 correct answer is: Adverse driving history or motor vehicle record