CALIFORNIA ADJUSTER PSI EXAM 50
COMPREHENSIVE STUDY GUIDE 2026
PRACTICE QUESTIONS AND ACCURATE
ANSWERS GRADED A+
◉ Major sections of BOP? Answer: 1. Property
2. Liability
3. Common Policy Conditions
◉ What are the two basic types of coverage in a Commercial Package
Policy Answer: Liability and Property Coverages
◉ What is the value feature in BOP? Answer: Replacement Cost
◉ Is inflation coverage / guard typically found in BOP? Answer: Yes
◉ Guarantees the principal (employee) will NOT do something
Answer: Fidelity Bond
◉ Fourth party to a surety bond who agrees to reimburse the surety
for losses sustained is principal defaults Answer: Indemnitor
, ◉ Guarantees to pay obligee if principal doesn't Answer: surety, aka
guaranteer
◉ Party to whom the principal owes the obligation Answer: Obligee
◉ _____ floater is a controlled form designed to cover items that the
insured has sold while those items are being moved or in transit
Answer: installation
◉ Specified max amount that a surety might have to pay if the
principal fails to perform as promised Answer: Penal Sum
◉ There are ____ claim settlement practices prohibited in California
Answer: 16
◉ What does BOP stand for Answer: Business Owner Policy
◉ How long will a PAP pay for medical costs? Answer: up to 3 years
◉ Guarantees the principal/ employee will NOT do something
Answer: Fidelity Bond
◉ Maintaincomplete files for all claims from current year and the
last ____ years Answer: 4
COMPREHENSIVE STUDY GUIDE 2026
PRACTICE QUESTIONS AND ACCURATE
ANSWERS GRADED A+
◉ Major sections of BOP? Answer: 1. Property
2. Liability
3. Common Policy Conditions
◉ What are the two basic types of coverage in a Commercial Package
Policy Answer: Liability and Property Coverages
◉ What is the value feature in BOP? Answer: Replacement Cost
◉ Is inflation coverage / guard typically found in BOP? Answer: Yes
◉ Guarantees the principal (employee) will NOT do something
Answer: Fidelity Bond
◉ Fourth party to a surety bond who agrees to reimburse the surety
for losses sustained is principal defaults Answer: Indemnitor
, ◉ Guarantees to pay obligee if principal doesn't Answer: surety, aka
guaranteer
◉ Party to whom the principal owes the obligation Answer: Obligee
◉ _____ floater is a controlled form designed to cover items that the
insured has sold while those items are being moved or in transit
Answer: installation
◉ Specified max amount that a surety might have to pay if the
principal fails to perform as promised Answer: Penal Sum
◉ There are ____ claim settlement practices prohibited in California
Answer: 16
◉ What does BOP stand for Answer: Business Owner Policy
◉ How long will a PAP pay for medical costs? Answer: up to 3 years
◉ Guarantees the principal/ employee will NOT do something
Answer: Fidelity Bond
◉ Maintaincomplete files for all claims from current year and the
last ____ years Answer: 4
