CALIFORNIA ADJUSTER TEST

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CALIFORNIA ADJUSTER TEST

Actual Qs and Ans Expert-Verified Explanation

This Exam contains:

-Guarantee passing score -87 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation

Question 1: Is a bailee agreement created by parking in a public garage?

Answer:

No Question 2: Errors and Omissions coverage in an Equipment Breakdown Protection policy:

Answer:

Provides coverage for damage that would not otherwise be covered because the insured made a mistake or unintentionally omitted information required by the insurer.Question 3: Garage-Keepers Policy Symbol # 31 includes:

Answer:

Dealers Autos Question 4: Trucker Insurance Policy Symbols include:

Answer:

Symbols 41 through 49

Question 5: Robbery definition:

Answer:

Taking property with violence or the threat of violence.Question 6: Equipment Breakdown Protection Coverage Form is more commonly known as:

Answer:

Boiler and Machinery Insurance

Question 7: 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.Question 8: Are costs associated with defending and investigating a claim against the insured included as Supplementary Payments?

Answer:

Yes.

Question 9: Limited Cooking and Fast Food Restaurant qualifications for a BOP.

Answer:

• 7,500 sq. ft. or fewer

• Max seating of 75 for limited cooking and 150 for fast food

• Beer and wine sales no more than 25% annual income

• No liquor sales

• Has Maintenance of fire extinguishing equipment

Question 10: Base Flood

Answer:

A flood that happens only once in 100 years

Question 11: Adjusting

Answer:

The process of comparing a claimant's losses to the promises made in an insurance policy.Question 12: Garage-Keepers Policy Symbol # 30 includes:

Answer:

Autos left for Service, Repair, Storage,and Safekeeping (mandatory for garages).Question 13: Is equipment buried in the ground covered under Equipment Breakdown Protection Coverage Form?

Answer:

No.

Question 14: What are the four types of Commercial Auto Insurance?

Answer:

• Basic Business Auto Policy (BAP)

• Garage Policy or Garage-keepers Policy

• Trucker's Policy

• Motor Carrier Policy

Question 15: Non-waiver Agreement

Answer:

Claimant agrees that adjuster's words and actions do not bind the insurer. Allows insurer to inspect damages without relying completely on independent adjuster. Usually used in catastrophic situations.Question 16: Business Auto Policy coverage Symbol # 5 includes:

Answer:

Owned autos subject to no-fault insurance Question 17: Motor Carrier is:

Answer:

One who transports goods OR passengers.

Question 18: 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.Question 19: Commercial Crime Insurance covers:

Answer:

Losses caused by outside sources or employees. It includes theft, forgery, fraud, and other illegal activity.

Question 20: 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.

Question 21: 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.Question 22: What is the standard deductible on an Equipment Breakdown Protection Coverage Form?

Answer:

$500

Question 23: SFIP Loss Payment Condition

Answer:

The insurer has 60 days from when it receives a proof of loss to pay the claim.

Question 24: Indemnitor

Answer:

Fourth party in a surety bond who agrees to reimburse the surety for losses sustained if the principal defaults.