CALIFORNIA ADJUSTER PSI EXAM 50
CERTIFICATION EVALUATION TEST PAPER 2026
COMPLETE STUDY QUESTIONS WITH
CORRECT ANSWERS
◉ 2. A claimant can be any of the following EXCEPT? Answer: o a
person who is conducting an investigation of a claim on behalf of an
insurer.
◉ 3. When should an insurer provide for the continuous operation
of a unit or division to investigate possible fraudulent claims?
Answer: o If admitted to do business in this state, except those
otherwise exempted.
◉ According to CIC Section 1711, an organization ceases to exist as
an entity eligible to hold a license EXCEPT? Answer: o Upon the
termination of all contracts
◉ 5. All of the following define insolvency EXCEPT? Answer: o
revocation of certificate of authority by the commissioner.
◉ 6. As used in the insurance code, the word "shall" is mandatory
and the word "may" is permissive EXCEPT? Answer: o unless
otherwise apparent from the context.
,◉ 7. Which of the following terms refers to any evidence or
documentation in the possession of the insurer that provides any
evidence of a claim and that reasonably supports the magnitude or
the amount of the claimant loss? Answer: o Poof of claim
◉ 8. When examination of an insurer shows the insurer to be
insolvent and a danger to the public, which authority is granted to
the Commissioner by the CIC? Answer: o The commissioner may
take possession of offices, books and property immediately without
court order.
◉ 9. An insurance agent is a person who transacts all of the
following types of insurance EXCEPT Answer: o Life insurance
◉ 10. Which of the following is TRUE regarding continuing
education requirements of an agent or broker? Answer: o Any
licensee shall satisfactorily complete 24 hours of instruction prior to
license renewal.
◉ 11. All of the following are included as definitions of "transact" as
applied to insurance EXCEPT? Answer: o Underwriting
, ◉ 12. Which group of people is offered additional protection by the
Unfair Practices Act that regulates trade practices in the business of
insurance? Answer: o Survivors of the Holocaust
◉ 13. Which of the following can the insurer do if the insured
intentionally conceals or misrepresents a material fact concerning
any coverage part? Answer: o Rescind the contract
◉ 14. While both work with an insurer, how does an "Insurance
broker" differ from an "insurance agent"? Answer: o The broker
does not transact on behalf of an insurer, while the agent does.
◉ 15. How can a licensee surrender any license for cancellation?
Answer: o By submitting written notice or by delivering the license
to the commissioner
◉ 16. The following are all penalties for unlawfully acting as an
insurer without a certificate of authority EXCEPT? Answer: The
individual will be banned from practicing insurance for a period of 5
years
◉ 17. Materiality to be solely determined by which of the following?
Answer: o The probable and reasonable influence of the facts upon
the party to whom the communication is due
CERTIFICATION EVALUATION TEST PAPER 2026
COMPLETE STUDY QUESTIONS WITH
CORRECT ANSWERS
◉ 2. A claimant can be any of the following EXCEPT? Answer: o a
person who is conducting an investigation of a claim on behalf of an
insurer.
◉ 3. When should an insurer provide for the continuous operation
of a unit or division to investigate possible fraudulent claims?
Answer: o If admitted to do business in this state, except those
otherwise exempted.
◉ According to CIC Section 1711, an organization ceases to exist as
an entity eligible to hold a license EXCEPT? Answer: o Upon the
termination of all contracts
◉ 5. All of the following define insolvency EXCEPT? Answer: o
revocation of certificate of authority by the commissioner.
◉ 6. As used in the insurance code, the word "shall" is mandatory
and the word "may" is permissive EXCEPT? Answer: o unless
otherwise apparent from the context.
,◉ 7. Which of the following terms refers to any evidence or
documentation in the possession of the insurer that provides any
evidence of a claim and that reasonably supports the magnitude or
the amount of the claimant loss? Answer: o Poof of claim
◉ 8. When examination of an insurer shows the insurer to be
insolvent and a danger to the public, which authority is granted to
the Commissioner by the CIC? Answer: o The commissioner may
take possession of offices, books and property immediately without
court order.
◉ 9. An insurance agent is a person who transacts all of the
following types of insurance EXCEPT Answer: o Life insurance
◉ 10. Which of the following is TRUE regarding continuing
education requirements of an agent or broker? Answer: o Any
licensee shall satisfactorily complete 24 hours of instruction prior to
license renewal.
◉ 11. All of the following are included as definitions of "transact" as
applied to insurance EXCEPT? Answer: o Underwriting
, ◉ 12. Which group of people is offered additional protection by the
Unfair Practices Act that regulates trade practices in the business of
insurance? Answer: o Survivors of the Holocaust
◉ 13. Which of the following can the insurer do if the insured
intentionally conceals or misrepresents a material fact concerning
any coverage part? Answer: o Rescind the contract
◉ 14. While both work with an insurer, how does an "Insurance
broker" differ from an "insurance agent"? Answer: o The broker
does not transact on behalf of an insurer, while the agent does.
◉ 15. How can a licensee surrender any license for cancellation?
Answer: o By submitting written notice or by delivering the license
to the commissioner
◉ 16. The following are all penalties for unlawfully acting as an
insurer without a certificate of authority EXCEPT? Answer: The
individual will be banned from practicing insurance for a period of 5
years
◉ 17. Materiality to be solely determined by which of the following?
Answer: o The probable and reasonable influence of the facts upon
the party to whom the communication is due
