California Insurance Adjuster Exam Test Bank New Latest Version Updated with Questions and 100% Correct Answers
Question : During a storm, heavy winds cause a tree limb to
break and fall onto Paul's house, causing $6,500 in damage.
Paul's insurance company now considers his house:
A Loss
Correct answer: Loss
Question : Which of the following best describes a "risk,"
according to the insurance definition?
Correct answer: A potential for financial loss
Question : A lion at a zoo escaped when a zoo employee
failed to follow protocol. The lion injured a zoo patron. In court, the injured patron's lawyer could invoke the doctrine
of:
Correct answer: Res Ipsa Loquitur.
Question : Which of the following best defines the doctrine of
Res Ipsa Loquitur?
Correct answer: The circumstances of the injury make it
obvious that the defendant is negligent; no proof is needed.
Question : Nina's home is located in a high crime
neighborhood. One day, she comes home from work to find that her garage door had been spray-painted with graffiti.Nina's insurer would consider the act of vandalism to Nina's
garage a:
Correct answer: Peril
Question : An economic device used to protect against the
risk of realizing unforeseen and extraordinary financial loss is
called:
Correct answer: A Peril
Question : Anytown Pediatrics has been having a hard time
finding medical malpractice insurance. The premiums are extraordinarily high, and they get higher every year. Finally,
fed up with the cost of insurance, the directors decide to form their own insurance company, which will serve only Anytown Pediatrics. This way, any profits generated by the insurer will come back to Anytown Pediatrics. What kind of insurance company would this be?
Correct answer: Captive insurer
Question : In an insurance contract, exclusions serve all of the
following purposes, except:
Correct answer: add coverages that need special treatment.
Question : Sam was tired of the neighbor's trees along the
fence line poking through the fence and dropping leaves in his yard, so he reached across the fence with his pole saw and cut down the neighbor's tree. Sam's neighbor was upset and sued him for the damages. Sam is ordered to pay $500 for the tree.Under which category of damage would this fall?
Correct answer: Compensory Damage
Question : Jackie recently inherited a life-sized marble statue
of her great-grandfather. It is an irreplaceable antique, and it
is nearly impossible to determine the ACV. Which type of policy would best indemnify Jackie in the event that the statue was ever damaged?
Correct answer: Agreed Value Policy
Question : ABC Consulting has a CGL policy and an
Umbrella policy, but the CGL runs from January 1 to December 31 and the Umbrella policy runs from June 1 to May 31. This difference in inception and expiration dates creates confusion when settling claims. This condition is
known as:
Correct answer: Nonconcurency
Question : A power surge sparks a small electrical fire in an
office building. The electrical fire triggers the automatic sprinkler system. The water from the sprinklers soaks the carpets and shorts-out all the computers, causing thousands of dollars in damage. The office must close for two months during repairs. The sprinklers soaking the office would be