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CA ADJUSTERS LICENSE EXAM QUESTIONS AND ANSWERS WITH EXPLANATION A+ GRADED
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CA ADJUSTERS LICENSE EXAM QUESTIONS AND ANSWERS WITH EXPLANATION A+ GRADED
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CA ADJUSTERS LICENSE EXAM QUESTIONSAND ANSWERS WITH EXPLANATION A+
GRADED
All of the following people/businesses would have a personal injury
liability exposure that should be covered by insurance, EXCEPT:
The owner of a store in a mall who may follow customers around the
store if he suspects them of shoplifting.
A TV station whose reporters may do feature stories on high profile
persons that might include private information about their personal lives.
A landlord who evicts a tenant for not paying the rent and suspicion of
illegal use of the premises.
The owner of a store in a mall who detains customers he suspects of
shoplifting until the police arrive.
Verified Answer -The correct answer is: The owner of a store in a mall
who may follow customers around the store if he suspects them of
shoplifting.
EXPLANATION:
The owner that follows a person he suspects of shoplifting, but does not
detain them, would not have a personal injury liability exposure unless he
takes some action such as having the suspect falsely arrested, detained or
imprisoned.
Under the HO-3 form, an "insured location" includes all of following,
EXCEPT:
,A furnished garage used as a residence
A hotel room where the insured is temporarily residing
Family cemetery plots
Property in an apartment rented to others away from the insured's
residence premises.
Verified Answer -The correct answer is: Property in an apartment rented
to others away from the insured's residence premises.
EXPLANATION:
An insured location does not include property in an apartment rented to
others that is away from the insured's residence premises.
The Commercial Building and Personal Property Coverage Form
includes an Additional Coverage for property removed from the premises
because of being endangered by an insured peril. The coverage lasts for:
30 days after the property is first moved.
5 days after the property is first moved.
10 days after the property is first moved.
15 days after the property is first moved.
Verified Answer -The correct answer is: 30 days after the property is first
moved.
EXPLANATION:
Property removed is covered for up to 30-days after being removed to
another location. Removed property is covered for any direct physical
loss.
,An insured submits a claim. The adjuster acknowledges receipt of the
claim. Nothing more is heard from the adjuster after repeated attempts
by the claimant to contact the adjuster. This is considered to be:
An unfair trade practice act
An unfair claims practice act
Misrepresentation of the conditions clause in the policy
An act of discrimination
Verified Answer -The correct answer is: An unfair claims practice act
EXPLANATION:
Failing to acknowledge with reasonable promptness pertinent
communications with respect to a claim is considered an unfair claims
practice.
In California an insurance binder:
Can be made orally
Can be made either orally or in writing
Must be made in writing
An agent cannot bind a risk unless approved by the insurer
Verified Answer -The correct answer is: Must be made in writing
EXPLANATION:
The binder can only be in writing and is effective until the policy is
issued. The binders are issued for a period not to exceed 90 days.
, An umbrella policy provision that requires the insured to participate in a
portion of a loss not covered by primary coverage but is covered under
the umbrella is:
Self-insured retention.
Coinsurance clause.
Participation clause.
Deductible.
Verified Answer -The correct answer is: Self-insured retention.
EXPLANATION:
This is called a self-insured retention which acts as a deductible for losses
not covered under the primary coverage but are covered under the
umbrella policy.
Replacement cost coverage is best defined as:
Replacement without deduction for depreciation.
Replacement cost minus tax depreciation.
Original cost minus physical depreciation.
Original cost minus tax depreciation.
Verified Answer -The correct answer is: Replacement without deduction
for depreciation.
EXPLANATION:
With replacement cost coverage, the insured is permitted to replace old
with new at today's cost without a deduction for depreciation.
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