2023 California Adjuster License Exam Updated 2023-2024 New Latest Version with All 110+, Exams of Nursing

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1. Which ISO form is known as the "Condominium Form"?: Homeowners 6
2. Symbol # 4 for a Business Auto Policy is for what type vehicles?: All owned autos that are not passenger vehicles.
3. Symbol # 5 for a Business Auto Policy is for what type vehicles?: All owned autos subject to a no-fault insurance law.
4. Symbol # 6 for a Business Auto Policy is for what type vehicles?: All owned autos subject to a compulsory uninsured motorist law.
5. If a hearing for suspension or revocation of a license is scheduled in response to a violation by an adjuster, how many days notice must be given to the adjuster prior to the hearing?: 10 days
6. In auto insurance, what does 25/50/10 stand for in coverage?: $25,000 max for one person's injuries / $50,000 max for all injuries in one accident / $10,000 max for all property damage
7. How many days after notice before an insurer must begin investigating a claim?: 15 calendar days
8. An insurer must respond to claim inquiries from the Dept. of Insurance within how many days?: 21 calendar days
9. In a Commercial Auto Policy, what does an individual named insured en- dorsement add to the policy?: It adds an insured's personal auto to the policy.
10. In a Commercial Auto Policy, what does a "Drive Other Car" endorsement add to the policy?: It adds named people and their spouses for the use of cars that they do not own.
11. What are the California minimum auto insurance requirements?: 15/30/5 - $15,000 bodily limit per person / $30,000 bodily injury max in one accident / $5, property damage
12. How many days notice must a California insurer give before cancelling a policy for non-payment of premiums?: At least 10 days
13. How many days notice must a CA insurer give before cancelling a policy for all other reasons other than non-payment?: At least 20 days before coverage ends, and mailing the notice counts as beginning of notice.
14. In a Workers' Compensation policy, Part 2 - Employer Liability the coverage is for ...: when employees claim injuries not subject to WC insurance, such as injuries caused by employer's negligence and claims by employee's relatives for consequential damages.
15. In a commercial property policy, Debris Removal coverage usually pays up to what percentage of the total claim for property damage?: 25%
16. After a personal auto policy loss is it a duty of the policy holder to complete a driving safety course?: No

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17. What type of hazard is an insured moving his car outside when there is an approaching hail storm so that he can make an insurance claim and get his car repainted?: a moral hazard
18. Does a Crop-Hail insurance policy cover flooding?: No
19. What is a morale hazard?: An indifference to risk when it is known that property is covered by insurance.
20. Under a Dwelling Form flood policy, what is the coverage for detached garages?: Covered up to 10% of Coverage A limit (and all other detached structures are excluded).
21. How many days does an insured have to add newly acquired autos to a policy?: 14 days to report newly acquired autos. However, if it to include collision coverage, it must be reported within 4 days.
22. What is the out of state coverage provision in a PAP?: If you meet your home state's requirements, it is assumed you meet the requirements of any other state.
23. What is the Dwelling Policy coverage for DP-1?: It is the basic form and covers fire, lightening, and internal explosion. Endorsements are available for wind, civil commotion, smoke, hail, aircraft, vehicles, volcanic, external explosion, and riot.
24. What is the Dwelling Policy coverage for DP-2?: It is the broad form coverage. Covers everything is basic form plus most of the available endorsements for basic form.
25. What is DP- 3 coverage?: Dwelling "special form" coverage that is open-peril coverage for structures, and if a peril is not excluded, it is covered.
26. A Personal Auto Policy will cover Medical Payments up to how many years after the date of the accident?: 3 years
27. How many days does an adjuster have to notify the commissioner of insurance of a change in address?: 30 days
28. What does a WC Voluntary Compensation Endorsement do?: It adds cover- age for employees who aren't legally required to be covered, such as volunteers.
29. Does coverage for trees, shrubs, and other plants exist in the DP- 2 or DP- 3 coverage?: Yes, for covered perils, but does not include windstorm or hail.
30. What is the purpose of the Insuring Agreement portion of an insurance policy?: To specify the coverages of the policy.
31. Does homeowner's coverage include flood damage?: No
32. In CA, when may an insurer require an insured to submit a claim notice of proof of loss within a specific time frame?: Only when it is outlined in the policy.
33. Part Four of a Workers' Compensation policy contains what?: The employ- er's duty in case of an accident, such as making sure the injured employee receives immediate medical care.

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34. What does inland marine insurance protect?: Property related to transporta- tion and property being transported.
35. What is a Sue and Labor provision in ocean marine insurance?: The insured party is required to attempt to protect and prevent against further losses once damage occurs.
36. What does Coverage A cover for Building and Personal Property Coverage Form?: Buildings and Structures - as listed on the dec page as well as additions and additions under construction, machinery inside the building, and construction equipment within 100 feet of the insured property.
37. What does Coverage B cover for Building and Personal Property Coverage Form?: Business Personal Property - property not affixed to the building including business owned personal property, inventory, labor, services, and material furnished on the property of others.
38. What does Coverage C cover for Building and Personal Property Coverage Form?: Personal Property of Others - at $2,500 limit and applies only to locations included on the dec page.
39. What is HO- 4 insurance?: Known as renter's insurance and only covers per- sonal property and does not insure the house or other structures. Think "4-Rent."
40. Can a CA insurer require an insured to submit a claim or proof of loss within a specific time frame?: No, unless it is outlined in the policy.
41. Which part of a homeowners policy provides coverage for the medical expenses of third parties who are injured on your property?: Coverage F
42. The limit of liability for Coverage B - Other Structures is typically:: 10% of Coverage A
43. What is Non-Owner PAP coverage?: Provides liability coverage for people who drive other people's vehicles.
44. What are the three parties to a Surety Bond Contract?: Principal (Obligor), Obligee, and Surety (Guarantor).
45. After an initial earthquake, how many hours must elapse before another earthquake is considered another, additional earthquake?: 72 hours
46. Must an out of state adjuster comply with CA continuing education require- ments?: No, as long as they are in compliance with their state's CE requirements.
47. Do homeowner policies cover property damage caused by water?: No
48. What is the formula for finding coverage for underinsured policy cover- age?: Amount of insurance one has (say $80,000) / the coinsurance requirement (say 80% usually) x the property value (say $200,000) x the covered loss (say the loss is $20,000) so ... $80,000/the coinsurance requirement (80% of the property value of $200,000 is $160,000) is 0.5 (80/160). 0.5 x $20,000 is $10,000. So, $10, is the covered loss on a $20,000 loss because of underinsured status.

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49. On a farm policy, how much is a light pole worth (limit)?: $
50. What is "T-yield" or "transitional yield"?: The average yield of other farms in the county, used to calculate a farmer's APH when the farmer does not have the 4 years of production records.
51. Who purchases Workers' Compensation (WC) insurance?: Employers
52. Does WC insurance cover both medical costs and lost wages?: Yes
53. Doctrine of contributory negligence: Any contributory negligence by the in- jured, however minor, can be a bar to recovery from a defendant.
54. Doctrine of comparative negligence: Compares the negligent component of each negligent party, and each is responsible for their negligence as a percentage of the whole negligent occurrence.
55. Is California's WC law elective or compulsory?: It is compulsory.
56. Is California's WC law monopolistic or competitive?: It is competitive, allow- ing private insurers to compete with the state fund.
57. In California WC, an employee includes all persons whether lawfully or unlawfully employed, except:: Unpaid workers such as volunteers, unpaid student athletes, disaster service workers, and certain law enforcement from adjoining states working in CA. Independent contractors do not need to be covered by WC.
58. Voluntary Compensation Endorsement: This endorsement adds WC cover- age for certain employees not otherwise covered, such as independent contractors, volunteers, and family members.
59. WC as an "exclusive remedy" means:: An injured party covered by WC may not sue the employer for further damages.
60. What will WC not cover?: Injuries caused by intoxication, self-inflicted, alter- cation in which the injured employee is the initial physical aggressor, caused by commission of a felony, or arising from voluntary involvement in an off-duty activity.
61. General or punitive damages in WC?: No, usually not available in WC plans.
62. How many parts to the WC plan?: Six. Part One - Available Benefits; Part Two

• Employers' Liability; Part Three - Out of State Coverage; Part Four - Employer's Duties; Part Five - Premiums; Part Six - Conditions.

63. What is the Average Weekly Wage (AWW) used for in WC?: The amount of disability benefits are based on the AWW. It is calculated based on average income for 52 weeks prior to injury or illness. Currently not less than $169 a week, nor more than $1,128 a week.
64. What is the WC term Maximum Medical Improvement (MMI)?: The term refers to the date after which there is unlikely to be any further improvement or recovery to a person's injury. "Permanent and Stationary" is the term used to describe workers who have reached MMI.

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65. What is the benefit waiting period in WC?: The employee must begin getting paid no later than 14 days after the injury takes place. The injured employee cannot begin receiving payments for the first 3 days, unless the injury causes loss of work for 14 days, or requires hospitalization.
66. Temporary Total Disability benefits (TTD): If unable to perform regular work, pays 2/3 of the injured worker's weekly wage.
67. Temporary Partial Disability benefits (TPD): Pays 2/3 of the difference be- tween employee's pre-injury wage and amount earned each week after the injury. Lasts up to 104 weeks in 2 years, or under certain illnesses or accidents up to 240 weeks in 5 year period.
68. Permanent Total Disability benefits (PTD): Pays 2/3 of the employee's pre-in- jury Average Working Wage and last s for the employee's lifetime. Loss of both eyes, hands, total paralysis, and permanent mental incapacity all automatically result in PTD.
69. What is the difference between speculative risk and pure risk?: Speculative risk is made by choice, there is no certainty of loss or gain, and cannot be insured. Pure risk has no chance of gain, only results in loss or no loss, and can be insured.
70. WC medical benefits: No dollar limit, no time limit, except for chiropractic care, occupational therapy, and physical therapy which are limited to 24 visits per injury.
71. WC Death Benefits: Burial costs, based on injury/disease dates of $2, before Jan. 1, 1991; $5,000 from 1991 to 2013; and $10,000 after Jan. 1 2013. Death benefit of $290,000 to $320,00 paid out over weekly payments of no less than $224 a week.
72. Situations where WC does not protect employer: Physical assault by employ- er, fraudulent concealment of employee's injury, and defective product manufactured by employer.
73. WC covers out of state employees if ...: Employee was hired in CA, or the work takes place principally in CA
74. Employer's duties under WC: Make sure employee received immediate med- ical care if injured, report the injury immediately, and cooperate with the investiga- tion, settlement, and/or defense of the claim. 75. What is the requirement for new employees for anti-fraud training in CA?- : All newly hired employees should receive anti-fraud orientation within 90 days of beginning their job.
75. Who does FELA cover? (Federal Employers Liability Act): Interstate railroad workers and their families.
76. Under the HO Broad Form, what are two exclusions that apply to perils of hail and windstorm?: 1) Watercraft and their trailers and equipment are covered only if in a fully enclosed building, and 2) personal property inside a building is only

Version with All 110+ Questions from Actual Past Exam and 100% Correct Answers covered due to damage by rain, sand , sleet, snow, or dust if these entered due to damage by hail or wind.

78. What is the HO2 policy?: It is a named peril policy that insures against all 17 broad form perils.
79. What is the advantage of the HO- 8 "Modified Coverage Form"?: It is cheap- er, since it is a named peril form that covers fewer perils at ACV.
80. What are the employers duties under Part Four: Employer's Duties in the WC policy?: 1) Make sure the employee receives immediate medical care, 2) Report the injury right away, and 3) Cooperate with the investigation of the accident and settlement and/or defense of the claim.
81. What is Part Three of the WC policy?: Out of state coverage.
82. Under Part Two of a WC policy (Employer's Liability), what are the situa- tions where an employee can sue?: 1) Injury of death was caused by physical assault by the employer, 2) The employer fraudulently conceals the employee's injury and concealment aggravates the existing injury, and 3) Injury or death was proximately caused by a defective product manufactured by the employer.
83. What is the implied warranty of Seaworthiness in an Ocean Marine Con- tract?: The vessel must be in seaworthy condition, fit for the voyage (not over- loaded), and have a competent captain and crew.
84. What is the implied warranty of Legality of an Ocean Marine Contract?: The voyage must be legal and not involve any contraband or smuggling. Such illegal activity will void the insurance contract.
85. What is the voyage implied warranty of an Ocean Marine Contract?: There must be no deviation in the voyage. It must be clearly stated and followed.
86. What time frame and what requirement for notice of cancellation of a Ocean Marine Premium?: The insurer must give a 15 day advance written notice of cancellation to the insured.
87. What are the four types of Ocean Marine Insurance policies?: 1) Hull Cov- erage, 2) Cargo Coverage, 3) Freight Insurance, 4) Protection & Indemnity (P&I).
88. What is the Unvalued basis of an Ocean Marine Policy?: The amount of payment is determined after the loss.
89. What are the commonly covered perils of an Ocean Marine Policy?: Fire, lightning, piracy. Sometimes Piracy and fighting and earthquakes are included. Hull policies typically exclude employee strikes, confiscation, and damage due to acts of war.
90. Under hull deductibles, what is a Franchise Deductible?: If the damage exceeds the deductible, the insurer pays the full cost for damages. If the damage is less than the deductible, the insured pays for all damages.

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91. What are the three types of Cargo Coverage?: 1) Single risk form, 2) Floating, Open, or Long Term, 3) Warehouse to warehouse.
92. BOP is available in two forms, what is the Standard Form?: The Standard Form covers named perils, including Fire, Lightning, Windstorm/Hail, Smoke, Air- craft/Vehicles, Riot or Civil Commotion, Vandalism, Sprinkler leakage, Sinkhole, Volcano, Property while being transported.
93. BOP is available in two forms, what is the Special Form?: Special Form covers open perils, but can have many exclusions.
94. BOP Standard Form and Special Form exclusions are?: Ordinance and law, earth movement, government action, nuclear, power failure, war, water.
95. What is a Bailee, and what is a No Benefit to Bailee clause?: A Bailee is a business that holds the property of others for the purpose of repair, storage, or servicing. The clause means that coverage does not apply to a company's property when it is being held or used by a third party.
96. Commercial vacancy definition:: Building is closed for 60 days, less than 31% of the building's available floor space is occupied for 60 days.
97. What are the requirements for legal action against an insurer?: Insured must comply with all policy obligations, and must file a lawsuit within 2 years of date of loss.
98. Unique features of Commercial Coverage for Building and Property Cov- erage A?: Requires that each structure, including pools, docks, and fences, must be stated separately on the dec page.
99. What is the effect of vacancy on a Commercial Policy coverage?: Coverage for vandalism, sprinkler leakage, glass breakage, water damage, and theft is sus- pended. All other coverage reduced by 15%.
100. What right does a mortgagee have under a Commercial Mortgage Clause regarding payments of premiums?: The mortgagee may pay the premiums to keep the policy active without the consent of the insured in order to continue protection.
101. What is Coverage L in the Personal Liability Supplement of dwelling policies?: It covers bodily injury and property damage to a 3rd party. It pays for legal defense and the minimum coverage limit is $100,000. It works the same as Coverage E in a homeowner's policy.
102. What is Coverage M in the Personal Liability Supplement of dwelling insurance?: It provides no fault coverage for necessary medical expenses for a third party injured on the insured's premises. Like Coverage F in a homeowner's policy. The minimum coverage limit is $1,000.

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103. What is a fidelity bond?: It is a guarantee that the principal (employee) will not do something. Similar to Commercial Crime Insurance, it is written on a "Employee Theft and Forgery Policy" form.
104. How can fidelity bonds be written?: On a scheduled (named specific em- ployees) or a blanket (all employees) basis.
105. What is Standard Form 24?: It is a fidelity bond used by financial institutions and is the most common fidelity bond.
106. What is Standard Form 25?: It is a fidelity bond used by insurance companies to cover insurance agreements for fraud, employee dishonest acts, forgery, etc.
107. What is a "Follow Form" excess liability policy?: It pays on liability in excess of the base policy, and follows the base policy to the letter.
108. What is the "Stand Alone" excess liability policy?: It pays on liability in excess of the base policy, but sets its own limitations and exclusions.
109. What is self-insured retention?: When an umbrella policy covers something that is not included in the primary policy.
110. What is an "actual total loss"?: As an example, a vessel that sinks and is not recovered is an actual total loss. Any items that disappear and have no salvage.
111. What is "Cost, Insurance, Freight"?: The seller or exporter is responsible to insure the cargo until it reaches its destination.
112. What is "Cost and Freight"?: The buyer or importer must insure the cargo throughout the shipment.
113. General Average Clause: All insurers participate in the coverage of loss of cargo when a captain must sacrifice cargo via jettison to save the ship.
114. Free of Particular Average Clause: Excludes coverage for all partial or acci- dental losses, except for stranding, sinking, burning, collision. Acts like a deductible as insurer only pays when losses exceed a certain percentage, such as 10%.
115. Inland marine Jeweler's Block: A Jewelers Block covers the policyholder's stock in trade, including jewelry, precious and semi-precious gems, metals and alloys, and other stock used in the jeweler's business. This also includes jewelry that has been sold, by not yet delivered. The Jewelers Block also covers similar property of others in the insured's care, custody, or control, whether or not such property is in the jewelry trade. However, if it is in the jewelry trade, it is covered only to the extent that the insured has already paid for the item.