CALA Property & Casualty Insurance Coverage

Question 1

What is typically covered under a standard homeowner's insurance policy?

Accepted Answer

Fire damage

Answer

Standard homeowner's insurance generally covers the structure, personal belongings, liability, and additional living expenses in case of a covered loss.

Question 2

Which of the following best describes liability coverage in an auto insurance policy?

Accepted Answer

Coverage for injuries or damage caused to others

Answer

Liability coverage pays for bodily injury and property damage to others caused by the insured's negligence.

Question 3

What is the purpose of a deductible in a property insurance policy?

Accepted Answer

To eliminate small claims

Answer

The deductible is the amount the insured must pay out-of-pocket before the insurance company covers the rest of the claim.

Question 4

Which of the following is usually NOT covered under a commercial general liability (CGL) policy?

Accepted Answer

Intentional acts by the insured

Answer

Intentional acts are excluded from coverage under a CGL policy because they are not considered accidental or negligent.

Question 5

In property insurance, what is 'actual cash value' (ACV)?

Accepted Answer

The depreciated value of the item

Answer

Actual cash value is the replacement cost of the item minus depreciation, reflecting the item's current market value.

(CALA) Certified All-Lines Adjuster Practice Test

(CALA) Certified All-Lines Adjuster Practice Test

CALA Property & Casualty Insurance Coverage