Adjuster Exam (Arizona) Questions &
Answers
Commercial Automobile Insurance Procedure (Arizona) - ANSWERSSimilarly, high-risk
commercial consumers who have trouble finding automobile insurance in the voluntary
market may find coverage through the Commercial Automobile Insurance Plan (CAIP).
Coverages available under CAIP are more limited than those available to drivers of
private passenger vehicles. Under this plan, commercial consumers may only obtain
Bodily Injury and Property Damage Liability with basic limits, unless higher limits are
required by law. Physical Damage Coverage is only available for light pick-up trucks
and motorcycles. Like private drivers, commercial drivers apply for this coverage
through the WAAIP.
Coverage E (HO) - ANSWERSPersonal Liability-
Pays for bodily injury and property damage to third party.
Applies even if the insured property causes a third party damages. never pays the
insured.
100,000 min coverage.
Coverage F (HO) - ANSWERSMedical Payments- No fault coverage.
Medical expenses incurred by third party due to an accident on insured premises. Only
necessary, reasonable medical charges.
1000 minimum limit.
Additional Coverages section 2 (HO) - ANSWERSProperty to others
First Aid
Claim Expenses
Loss Assessment
Limited Fungi, Wet or Dry Rot, or Bacteria Coverage - ANSWERSThis endorsement
defines fungi as "any type or form of fungus, including mold or mildew, and any
mycotoxins, spores, scents or byproducts produced or released by fungi."
It also provides a specified amount of additional coverage for loss caused by fungi.
This liability coverage has its own sub-limit within the total Coverage E limit.
Home Day Care - ANSWERSThis endorsement may provide both property and liability
coverage as long as the business is conducted by the insured on their residence
premises and scheduled in the endorsement.
,Watercraft Liability - ANSWERSSpecifically, this endorsement is intended for watercraft
powered by motors with more than 25 horsepower and sailing vessels 26 feet or more
in length.
This coverage does not apply to watercraft being operated in racing activities (except for
sailing vessels), craft that are being rented to others, or to craft used to carry people for
a fee
Dwelling policy - ANSWERSIs for people and business who are not eligible for
homeowners insurance.
Covers property only, not liability
Dwelling vs Homeowners - ANSWERShomeowners insurance requires someone to
reside at the property.
Homeowners requires the owner be an actual person.
Dwelling does not require someone to reside
Dwellings can be held by businesses or companies.
Farms are not eligible for either- they must be covered by a farm policy
Dwelling coverage forms - ANSWERSDP-1: basic form
DP-2: broad form
DP-3: special form
DP-1 - ANSWERSBasic form
named peril coverage:
covers only fire, lightning, and internal explosions.
Endorsements:
VMM (Vandalism and malicious mischief)
Extended coverage endorsement : WCSHAVVER
WCSHAVVER - ANSWERSW- windstorm
C- civil Commotion
S- smoke
H- hail
A- aircraft
V- vehicles
V- volcanic eruption
E- external explosion
R- riot
DP-2 - ANSWERSSame perils as a basic form, with more.
extended form perils (WCHAVVER)
broad form perils such as vandalism, damage by burglars, glass breakage, falling
objects, weight of ice, collapse of building, sudden and accidental tearing apart,
freezing, artificial electrical currents, accidental discharge or overflow of water.
DP-3 - ANSWERSSpecial Form
, if a peril is not excluded, its is covered. ( long list of exclusions- settling, cracking,
shrinking, bulging of patios, foundations, etc.
damage from birds or bugs.
Damage from domestic animals
theft
etc)
Dwelling Coverage A - ANSWERSPrinciple Dwelling- attached structures, service
machinery, building materials on or next to the dwelling. (not tools or damage to the
land itself)
Dwelling Coverage B - ANSWERSOther structures-
APS ( appurtenant physical structures), detached garage, guesthouse, shed, mailbox.
Limit 10% is included as part of coverage A limit.
Dwelling Coverage C - ANSWERSPersonal property-
listed property on the policy.
Limit is 10% of coverage C limit.
No additional insurance
Exclusions:
Animals
Vehicles
aircraft
boats
paper and electronic data
credit and debit cards
money
grave markers
water or steam
Dwelling Coverage A B C - ANSWERSCovers direct loss
Dwelling Coverage D E - ANSWERSCovers indirect losses
Dwelling Coverage D - ANSWERSFair rental value
Dwelling Coverage E - ANSWERSAdditional living expenses
Dwelling Endorsements - ANSWERSCoverage L - Personal liability
Coverage M- Medical payments to others
Newly Acquired Auto - ANSWERSAny new or used vehicle that the insured gets during
the current policy period.
Must weigh less than 10,000 lbs
May not be covered under another insurance policy
May not be used for the transportation of goods or materials.
