California Insurance Adjuster |CIGA| Written State Exam Question and Answers [100% Correct] 2025/2026 Latest Release!!
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California claims adjuster
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California Claims Adjuster
California Insurance Adjuster |CIGA|
Written State Exam Question and Answers
[100% Correct] 2025/2026 Latest Release!!
What is the primary purpose of the California Insurance Guarantee Association (CIGA)?
To provide coverage for policyholders of insolvent insurance companies.
In Califor...
California Insurance Adjuster |CIGA|
Written State Exam Question and Answers
[100% Correct] 2025/2026 Latest Release!!
What is the primary purpose of the California Insurance Guarantee Association (CIGA)?
To provide coverage for policyholders of insolvent insurance companies.
In California, how does CIGA handle claims from insolvent insurers?
CIGA steps in to pay claims that would otherwise go unpaid due to the insolvency of the insurer.
Which type of claims are NOT covered by CIGA?
Claims arising from workers’ compensation insurance.
What is the maximum amount CIGA will pay for any one claim?
The maximum is generally up to $500,000 for each covered claim.
Can CIGA provide defense costs for claims against an insolvent insurer?
Yes, CIGA may cover legal defense costs for claims against insolvent insurers within certain limits.
How is CIGA funded?
CIGA is funded by assessments on member insurance companies.
What happens when an insurance company becomes insolvent in California?
CIGA steps in to protect policyholders by paying covered claims.
When CIGA pays a claim, does it take over the insurance policy?
No, CIGA does not take over the policy; it only pays claims arising from the policy.
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,What type of policies are covered by CIGA?
CIGA covers various types of insurance policies, including personal and commercial lines, except
for certain exclusions like workers’ compensation.
How long does CIGA continue to provide coverage after an insurer’s insolvency?
CIGA continues to provide coverage until the claims are resolved or the policy is cancelled.
What is the main limitation of CIGA’s coverage for claims?
CIGA has a limit on the amount it can pay per claim, typically up to $500,000.
Is there a specific statute that governs CIGA’s operation in California?
Yes, CIGA operates under the California Insurance Code, specifically Section 1063.
Can CIGA cover claims for insurers that were previously solvent but are now insolvent?
Yes, CIGA provides coverage for claims against insurers that were solvent at the time the policy
was issued but have since become insolvent.
Does CIGA cover claims for environmental damage caused by an insolvent insurer?
CIGA may cover claims for environmental damage, but there are specific rules and limits that
apply.
Are there any exclusions to CIGA’s coverage?
Yes, certain claims like workers’ compensation claims and claims from self-insured groups are
excluded.
How is the claims process handled when CIGA becomes involved?
CIGA takes over the claims process, handling claim payments and investigations in place of the
insolvent insurer.
Is there a waiting period before CIGA begins paying claims?
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, CIGA begins paying claims as soon as it determines the insurance company is insolvent.
What happens if a claim exceeds the CIGA limit of $500,000?
If the claim exceeds $500,000, CIGA will pay up to that limit, and the policyholder may need to
seek additional recovery from other sources.
Can a policyholder choose their own attorney when CIGA handles a claim?
Yes, policyholders can choose their own attorney, but CIGA may have specific rules or restrictions
regarding legal representation.
How does CIGA handle claims for insurance policies that were canceled before the insurer’s insolvency?
CIGA will not pay claims for policies that were canceled before the insolvency of the insurer.
How does CIGA handle claims for policies written by non-California insurers?
CIGA will only handle claims for policies written by insurers that were licensed to do business in
California at the time of the policy.
If an insured person is underpaid by CIGA, can they appeal the decision?
Yes, the policyholder has the right to appeal CIGA’s decision if they believe the payment is
insufficient.
What is the role of insurance adjusters when dealing with CIGA claims?
Insurance adjusters investigate and assess claims to ensure that they are legitimate and fall
within CIGA’s coverage guidelines.
What happens if a policyholder does not file a claim after an insurer becomes insolvent?
The policyholder may lose the ability to recover any money from CIGA if the claim is not filed in
time.
Can CIGA pay claims directly to medical providers on behalf of policyholders?
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