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CA ADJUSTERS LICENSE PSI EXAM ACTUAL EXAM COMPLETE 200 QUESTIONS WITH DETAILED VERIFIED ANSWERS (100% CORRECT ANSWERS) AND EXPLANATION / ALREADY GRADED A+ $17.89   Add to cart

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CA ADJUSTERS LICENSE PSI EXAM ACTUAL EXAM COMPLETE 200 QUESTIONS WITH DETAILED VERIFIED ANSWERS (100% CORRECT ANSWERS) AND EXPLANATION / ALREADY GRADED A+

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CA ADJUSTERS LICENSE PSI EXAM ACTUAL EXAM COMPLETE 200 QUESTIONS WITH DETAILED VERIFIED ANSWERS (100% CORRECT ANSWERS) AND EXPLANATION / ALREADY GRADED A+

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  • August 18, 2024
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  • CA ADJUSTERS LICENSE PSI
  • CA ADJUSTERS LICENSE PSI
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CA ADJUSTERS LICENSE PSI EXAM ACTUAL EXAM
COMPLETE 200 QUESTIONS WITH DETAILED
VERIFIED ANSWERS (100% CORRECT ANSWERS)
AND EXPLANATION / ALREADY GRADED A+


Which of the following dwelling forms provides coverage for loss of rental income?

- The Basic, Broad and Special Form
- The Basic and Broad Forms only
- The Broad and Special Forms only
- The Special Form only - ANSWERThe correct answer is: The Basic, Broad and
Special Form.

EXPLANATION:
All of the forms provide for rental value coverage. In the DP-2 and DP-3, it is 20% of the
Coverage A limit and is additional coverage. With the DP-1, the 20% coverage reduces
the available Coverage A amount on the dwelling. (Note: in North Carolina the
percentage is 10%.)

Which of the following can be categorized as liability doctrines?

Vicarious
Res Ipsa Loquitur
Strict
All of the Responses are Correct - ANSWERThe correct answer is: All of the
Responses are Correct.

EXPLANATION:
All of these terms can be categorized a liability doctrines. Res Ipsa Loquitur means "the
thing speaks for itself."

Under an HO-3 form materials and supplies to be used in construction, alteration or
repair of the structure and kept next to the residence premises are covered:

If they have been at the location more than 30 days.
If they have been at the location less than 30 days.
Only if they are lost due to an insured peril.
Only if they are lost due to fire. - ANSWERThe correct answer is: Only if they are lost
due to an insured peril.

,The items would be covered if destroyed by an insured peril. Note that the items must
either be on the insured's residence premises or next to the residence premises such as
in a neighbor's garage.

Under an Equipment Breakdown Protection policy with $500,000 in coverage, a covered
"accident" resulted in the following:

I. $500,000 worth of damage to the property.
II. $10,000 damage to the property of another in the insured's care.
III. $5,000 in legal fees to defend the insured in this case.

The policy will pay a total of:

$505,000.
$500,000.
$510,000.
$515,000. - ANSWERThe correct answer is: $505,000.

EXPLANATION:
The maximum that can be paid is the limit of the policy. Legal expenses are in addition
to the limit of coverage.

The insured is insured under a DP-3 dwelling form and is remodeling the dwelling. He
does not have a place to store the materials. His next door neighbor permits the insured
to store the materials in his garage. The garage is destroyed by fire and the materials
are also destroyed. Which of the following applies?

- The policy has a special limit under an extension of coverage that applies.
- Coverage is included under the building coverage and would apply since the materials
are next to the insured's premises.
- The policy would not pay the claim since the materials were off the insured's residence
premises.
- The materials must be in an enclosed structure for coverage to apply. - ANSWERThe
correct answer is: Coverage is included under the building coverage and would apply
since the materials are next to the insured's premises.

EXPLANATION:
The policy would respond to pay the loss because the policy covers building materials
located on or next to the insured premises.

All of the following are necessary for Liability coverage to apply under the PAP, except:
The insured must not have been drinking.
The person liable must be an insured person.
The insured must be legally liable for the accident.
The damage or injury must be the result of an auto accident. - ANSWERThe correct
answer is: The insured must not have been drinking.

,It is not necessary that the insured not have been drinking alcohol at the time of the
accident. Coverage would still apply.

Under an equipment dealer's form, which of the following would not be covered?

Inventory
Serviced items
Customer's property on the insured's premises
Vehicles for highway use - ANSWERThe correct answer is: Vehicles for highway use.

EXPLANATION:
Inland marine forms provide coverage for the insured's goods as well as property of
others, but they do not cover automobiles.

Which of the following components MUST be included in the definition of a hostile fire:

I. Rapid oxidation accompanied by a flame or at least a glow.
II. Must be sudden and unexpected.
III. Must have been intentionally set by the insured.
IV. Must spread beyond its intended place.

I, II and IV only
I, II, III and IV
I and II only
I, III and IV only - ANSWERThe correct answer is: I, II and IV only.

EXPLANATION:
This definition must include three of the four components expressed here. In addition, a
hostile fire is one that is spread beyond its intended place or a place not intended for it.

For how long must an adjusting firm maintain its claim files?

For as long as any statute of limitations
For the current year and 10 prior years
For the current year and 4 prior years
For the current year only - ANSWERThe correct answer is: For the current year and 4
prior years.

EXPLANATION:
Per the California DOI, adjusting firms must maintain files for the current policy year and
the preceding four years, at the company's principal place of business.

An adjuster, acting as a fiduciary agent, should do which of the following?

- Not represent interests which are adverse to those of the principal
- All of the responses are correct

, - Not seek profit from an outside source as a consequence of actions for and behalf of
the principal
- Act with a high degree of fidelity and loyalty to the interests of the principal -
ANSWERThe correct answer is: All of the responses are correct .

EXPLANATION:
A fiduciary agent represents a principal, and therefore must place the principal's
financial interests above any other and act with the utmost degree of care to protect the
principal's financial interests.

Which of the following situations would be covered under bodily injury (BI) liability
coverage?

Physical Impairment
False Arrest
Libel
Suicide - ANSWERThe correct answer is: Physical Impairment

EXPLANATION:
Libel, slander, and suicide are not covered within the definition of bodily injury. Physical
impairment is a form of bodily injury. Libel and slander are forms of "personal injury"
coverage.

Which of the following is a valid reason to deny coverage or charge a higher premium
for an automobile policy?

Race or religion
Adverse driving history or motor vehicle record
Sexual orientation
Ancestry - ANSWERThe correct answer is: Adverse driving history or motor vehicle
record

EXPLANATION:
Adverse driving history or motor vehicle record is the only valid reason of those listed to
deny coverage or charge a higher premium.

Cars driven by Sue Trent and Jim Higgins were involved in an automobile accident. Ms.
Trent's car was a total loss, and she obtained a settlement of $25,000 for her injuries.
Scott Finley, Ms. Trent's passenger, was injured and incurred $6,000 in medical
expenses. Mr. Higgins, the responsible party, carries Bodily Injury coverage with limits
of $15,000 per person and $30,000 per accident, and Property Damage coverage of
$5,000. His policy will pay a maximum of:

$26,000
$29,000
$35,000

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