CA Adjusters License PSI Question and Answers [100% Correct] 2025/2026- Updated Version!!
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California claims adjuster
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California Claims Adjuster
CA Adjusters License PSI Question and
Answers [100% Correct] 2025/2026- Updated
Version!!
What is the primary exclusion under the HO-3 policy for "other structures" when they are used for
certain purposes?
When used for business purposes.
When other structures on the property are used...
CA Adjusters License PSI Question and
Answers [100% Correct] 2025/2026- Updated
Version!!
What is the primary exclusion under the HO-3 policy for "other structures" when they are used for
certain purposes?
When used for business purposes.
When other structures on the property are used for business purposes, they are excluded from coverage
under the homeowner policy.
How many days’ notice must an insurance company give when canceling a policy due to property
vacancy for more than 60 days, government-mandated demolition, or removal of fixed items?
5 days.
A commercial property policy can be canceled by the insurer with 5 days’ notice under specific
conditions such as vacancy, demolition orders, or removal of fixed items.
What is the required timeframe for an insurer to disclose the details of an investigative consumer report
to the consumer upon request?
5 days.
The insurance company must provide full disclosure of the investigative report to the consumer within 5
days of receiving the request.
In which scenario would an umbrella liability policy not typically cover the insured for defense costs?
When the insured is sued for $10,000 in bodily injury damages.
The umbrella liability policy provides defense coverage only when the underlying coverage is exhausted,
and a $10,000 claim would likely be covered by the primary insurance.
1
,Which of the following is an exception to the pollution liability exclusion under the Business Auto Policy
(BAP)?
The escape of pollutants caused by damage to property containing them when the damage
results from a covered auto.
The BAP liability exclusion removes coverage for pollution-related costs, but it does cover the escape of
pollutants caused by accidents involving a covered vehicle.
Which of the following is **not** covered under the specified cause of loss coverage in a commercial
auto policy?
Glass breakage.
The specified cause of loss form does not cover damage from glass breakage, although it does include
fire, lightning, and flood.
Which of these events is **not** considered an act of terrorism under the insurance policy?
Acts of riot and civil commotion.
Acts of riot and civil commotion are not considered terrorism under the policy and are typically covered
by property insurance.
A company adjuster represents the interests of which party?
The insurer.
A company or staff adjuster works on behalf of the insurance company to assess and settle claims.
Under the Personal Auto Policy, where are Supplementary Payments included?
In addition to the limit of liability.
2
,Supplementary Payments are separate from the policy’s limits of liability and are added to the total
coverage.
When processing a first-party claim, what must be specified on the payment draft?
The type of coverage under which payment is made.
The payment draft must specify the type of coverage under which the claim is being paid.
In a Commercial Property Policy, how is loss payment handled when multiple insurers are involved?
Each insurer pays according to the percentage of its coverage relative to the total insurance
amount.
This is known as the Pro-rata Liability Clause, where insurers contribute based on the proportion of their
coverage to the total insured amount.
David has damaged his vehicle. Which options are available to him for repairs and payment?
I, II, and III.
David can take his car to a repair garage recommended by the insurer, to a garage of his choice, or accept
payment based on the adjuster's estimate.
What would be covered under Coverage A of a farm policy?
A structure attached to the dwelling.
Coverage A includes the dwelling and any structures attached to it, such as a garage.
Which of the following coverages is included in a Personal Auto Policy without requiring an
endorsement?
Transportation Expenses.
3
, Transportation expenses are included in the Personal Auto Policy as part of Physical Damage coverage,
typically when the vehicle is stolen.
What are the basic benefits available under a typical workers compensation policy?
I, II, and III only.
The basic benefits under workers compensation include medical expenses, loss of income, and
rehabilitation, but not pain and suffering.
Which of the following is NOT included in the California Code of Regulations (CCR)?
Selling techniques.
Selling techniques are not governed by the California Department of Insurance unless they violate
insurance law.
Which commercial property form provides the broadest coverage?
Special form.
The Special form is an all-risk (open-perils) policy, offering the broadest coverage compared to the Basic
and Broad forms, which cover named perils.
What type of authority is it called when the public believes an agent has the authority based on their
actions?
Apparent Authority.
Apparent authority refers to the perceived authority of the agent, inferred from their actions, rather
than from explicit agreements.
In legal terms, what is the written explanation of how a loss occurred?
Statement.
4
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