Exam (elaborations)
CA Adjusters License PSI.
- Course
- Institution
CA Adjusters License PSI.
[Show more]
Seller
Follow
EXAMQA
Reviews received
Content preview
CA Adjusters License PSIOther structures are excluded from coverage under the HO-3 when they are:
Smaller than 100 square feet or larger than 1,000 square feet
Smaller than 100 square feet or larger than 500 square feet
Used for storage purposes
Used for business purposes - CORRECT ANSWER-Used for business purposes
is correct.
EXPLANATION:
When the other structures are used for business purposes they are not covered
under the homeowner form. This structure and its contents could be covered
under a commercial property policy. An exception would be a detached structure
used to store business property of a non-flammable, non-gaseous nature.
An insurance company must give how many days notice of cancellation for a
vacancy of more than 60 days, when the government has ordered demolition, or
when fixed items are being removed and not replaced?
5
21
10
30 - CORRECT ANSWER-5 is correct.
EXPLANATION:
The cancellation changes endorsement is the "mandatory endorsement" referred
to in the question. In California, the endorsement must be included in every
commercial property policy. It allows cancellation by the insurer with 5 days'
notice for several reasons: vacancy or unoccupancy for 60 or more days;
damages from a prior covered loss haven't been started; the government has
ordered demolition or to vacate; fixed items are being removed and not replaced;
and, utilities are shut off for 30 or more days, or property taxes are more than one
year past due.
Upon request made by the consumer, a person who procures an investigative
consumer report on the consumer must make a complete and accurate
disclosure to the consumer of the nature of the report and investigation within:
,In writing and mailed to the consumer within 30 days of the request.
In writing and mailed to the consumer within 15 days of the request.
In writing and mailed to the consumer within 10 days of the request.
In writing and mailed to the consumer within 5 days of the request. - CORRECT
ANSWER-In writing and mailed to the consumer within 5 days of the request..
EXPLANATION:
This disclosure must be made in writing and mailed or otherwise delivered to the
consumer no later than five days after the date on which the request for the
disclosure was received from the consumer.
The insured has primary bodily injury and property damage liability coverage with
a $100,000 limit, and a $1 million umbrella liability policy with a $5,000
self-insured retention limit. In which one of the following situations would the
insured's umbrella liability policy typically not provide defense coverage?
Answer Choices: Select the Correct Answer
Five people sued the insured for property damage arising out of one occurrence.
One of the cases was settled out of court for $100,000.
The insured was sued for $150,000 in personal injury damages.
The insured was sued for $10,000 in bodily injury damages.
The umbrella liability policy would provide a defense in all three cases. -
CORRECT ANSWER-The correct answer is: The insured was sued for $10,000
in bodily injury damages.
EXPLANATION:
The claim would fall under the underlying coverage and not the umbrella
because the underlying coverage has sufficient limits in place.
Question 5 of 100
The BAP liability exclusion pertaining to pollution removes coverage for each of
the following, except:
Answer Choices: Select the Correct Answer
The cost of governmentally ordered clean-up of pollutants.
The escape of pollutants while being transported by a covered auto.
The escape of pollutants caused by damage to the property containing them
when the damage results from the use of a covered auto.
,The escape of pollutants before they are accepted by the insured for movement
onto a covered auto. - CORRECT ANSWER-The escape of pollutants caused by
damage to the property containing them when the damage results from the use
of a covered auto. is correct.
EXPLANATION:
If the insured's vehicle causes an accident with another vehicle or other property
(owned by a third party) containing the pollutants, the loss is covered.
Which of the following would not be covered under the specified cause of loss
physical damage coverage under the commercial auto form?
Glass breakage
Fire
Lightning
Flood - CORRECT ANSWER-The correct answer is: Glass breakage.
EXPLANATION:
The specified cause of loss form covers the following perils: fire, lighting,
explosion, theft, windstorm, hail, earthquake, flood, vandalism or mischief,
transportation by a conveyance. The coverage does not include glass breakage,
hitting a bird or animal nor falling objects or missiles.
All of the following events are considered acts of terrorism, EXCEPT:
Acts of riot and civil commotion.
Acts considered dangerous to human life, property or infrastructure.
Acts resulting in damage within or outside the United States.
Acts at the premises of any United States mission. - CORRECT ANSWER-The
correct answer is: Acts of riot and civil commotion. .
EXPLANATION:
Acts of riot and civil commotion are not covered by the Act. These are perils that
are covered by property insurance policies.
A company or staff adjuster represents the interests of:
The insurer.
The insured.
The claimant.
, The public. - CORRECT ANSWER-The insurer. is correct.
EXPLANATION:
Company or staff adjusters are individuals employed by a property and casualty
insurance company to settle on its behalf claims brought by insureds. They work
directly for the insurance company as year-round salaried employees. Staff
adjusters evaluate the merits of each claim and make recommendations to the
insurance company.
Under the Personal Auto Policy the Supplementary Payments coverage is:
Answer Choices: Select the Correct Answer
In addition to the limit of liability.
Added by endorsement.
Included in the limit of liability.
Not available under the personal auto policy. - CORRECT ANSWER-In addition
to the limit of liability. is correct.
EXPLANATION:
Supplementary Payments are in addition to the Limits of Liability.
When a first party claim is made, what must be listed on the payment draft?
Answer Choices: Select the Correct Answer
Type of coverage under which payment is made
Details of the accident
Application of the deductible
Drivers license number - CORRECT ANSWER-Type of coverage under which
payment is made is correct.
EXPLANATION:
When a claim payment is made, an indication of the type of coverage under
which the payment is made must be stated on the draft payment.
Under the Commercial Property Policy, the Pro-rata Liability Clause means:
Answer Choices: Select the Correct Answer
Each insurer pays its limits under the policy.
Neither Insurer Pays
Each insurer pays in accordance to the percentage of its coverage bears to the
total amount of insurance.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller EXAMQA. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $7.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
62890 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now