CA Adjusters License PSI
CA Adjusters License PSI
Study online at https://quizlet.com/_1v9zkz
1. Other structures are excluded from Used for business purposes is correct.
coverage under the HO-3 when EXPLANATION:
they are: When the other structures are used for business pur-
poses they are not covered under the homeowner
Smaller than 100 square feet or form. This structure and its contents could be covered
larger than 1,000 square feet under a commercial property policy. An exception
Smaller than 100 square feet or would be a detached structure used to store business
larger than 500 square feet property of a non-flammable, non-gaseous nature.
Used for storage purposes
Used for business purposes
2. An insurance company must give 5 is correct.
how many days notice of cancel- EXPLANATION:
lation for a vacancy of more than The cancellation changes endorsement is the
60 days, when the government has "mandatory endorsement" referred to in the question.
ordered demolition, or when fixed In California, the endorsement must be included in
items are being removed and not every commercial property policy. It allows cancel-
replaced? lation by the insurer with 5 days' notice for sever-
al reasons: vacancy or unoccupancy for 60 or more
5 days; damages from a prior covered loss haven't been
21 started; the government has ordered demolition or
10 to vacate; fixed items are being removed and not re-
30 placed; and, utilities are shut off for 30 or more days,
or property taxes are more than one year past due.
3. Upon request made by the con- In writing and mailed to the consumer within 5 days
sumer, a person who procures an of the request..
investigative consumer report on EXPLANATION:
the consumer must make a com- This disclosure must be made in writing and mailed
plete and accurate disclosure to the or otherwise delivered to the consumer no later than
consumer of the nature of the re- five days after the date on which the request for the
port and investigation within: disclosure was received from the consumer.
Page 1 of 48
, CA Adjusters License PSI
CA Adjusters License PSI
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In writing and mailed to the con-
sumer within 30 days of the re-
quest.
In writing and mailed to the con-
sumer within 15 days of the re-
quest.
In writing and mailed to the con-
sumer within 10 days of the re-
quest.
In writing and mailed to the con-
sumer within 5 days of the request.
4. The insured has primary bodily in- The correct answer is: The insured was sued for
jury and property damage liability $10,000 in bodily injury damages.
coverage with a $100,000 limit, and
a $1 million umbrella liability policy EXPLANATION:
with a $5,000 self-insured retention The claim would fall under the underlying coverage
limit. In which one of the follow- and not the umbrella because the underlying cover-
ing situations would the insured's age has sufficient limits in place.
umbrella liability policy typically not
Question 5 of 100
provide defense coverage?
Answer Choices: Select the Correct
Answer
Five people sued the insured for
property damage arising out of one
occurrence. One of the cases was
settled out of court for $100,000.
The insured was sued for $150,000
in personal injury damages.
The insured was sued for $10,000 in
bodily injury damages.
Page 2 of 48
, CA Adjusters License PSI
CA Adjusters License PSI
Study online at https://quizlet.com/_1v9zkz
The umbrella liability policy would
provide a defense in all three cases.
5. The BAP liability exclusion pertain- The escape of pollutants caused by damage to the
ing to pollution removes coverage property containing them when the damage results
for each of the following, except: from the use of a covered auto. is correct.
Answer Choices: Select the Correct EXPLANATION:
Answer If the insured's vehicle causes an accident with anoth-
The cost of governmentally ordered er vehicle or other property (owned by a third party)
clean-up of pollutants. containing the pollutants, the loss is covered.
The escape of pollutants while be-
ing transported by a covered auto.
The escape of pollutants caused by
damage to the property contain-
ing them when the damage results
from the use of a covered auto.
The escape of pollutants before
they are accepted by the insured for
movement onto a covered auto.
6. Which of the following would not be The correct answer is: Glass breakage.
covered under the specified cause EXPLANATION:
of loss physical damage coverage The specified cause of loss form covers the following
under the commercial auto form? perils: fire, lighting, explosion, theft, windstorm, hail,
earthquake, flood, vandalism or mischief, transporta-
Glass breakage tion by a conveyance. The coverage does not include
Fire glass breakage, hitting a bird or animal nor falling
Lightning objects or missiles.
Flood
7. All of the following events are con- The correct answer is: Acts of riot and civil commotion.
sidered acts of terrorism, EXCEPT: .
EXPLANATION:
Page 3 of 48
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CA Adjusters License PSI
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Acts of riot and civil commotion. Acts of riot and civil commotion are not covered by
Acts considered dangerous to hu- the Act. These are perils that are covered by property
man life, property or infrastructure. insurance policies.
Acts resulting in damage within or
outside the United States.
Acts at the premises of any United
States mission.
8. A company or staff adjuster repre- The insurer. is correct.
sents the interests of: EXPLANATION:
Company or staff adjusters are individuals employed
The insurer. by a property and casualty insurance company to
The insured. settle on its behalf claims brought by insureds. They
The claimant. work directly for the insurance company as year-round
The public. salaried employees. Staff adjusters evaluate the mer-
its of each claim and make recommendations to the
insurance company.
9. Under the Personal Auto Policy the In addition to the limit of liability. is correct.
Supplementary Payments coverage EXPLANATION:
is: Supplementary Payments are in addition to the Limits
Answer Choices: Select the Correct of Liability.
Answer
In addition to the limit of liability.
Added by endorsement.
Included in the limit of liability.
Not available under the personal
auto policy.
10. When a first party claim is made, Type of coverage under which payment is made is
what must be listed on the payment correct.
draft? EXPLANATION:
Page 4 of 48
CA Adjusters License PSI
Study online at https://quizlet.com/_1v9zkz
1. Other structures are excluded from Used for business purposes is correct.
coverage under the HO-3 when EXPLANATION:
they are: When the other structures are used for business pur-
poses they are not covered under the homeowner
Smaller than 100 square feet or form. This structure and its contents could be covered
larger than 1,000 square feet under a commercial property policy. An exception
Smaller than 100 square feet or would be a detached structure used to store business
larger than 500 square feet property of a non-flammable, non-gaseous nature.
Used for storage purposes
Used for business purposes
2. An insurance company must give 5 is correct.
how many days notice of cancel- EXPLANATION:
lation for a vacancy of more than The cancellation changes endorsement is the
60 days, when the government has "mandatory endorsement" referred to in the question.
ordered demolition, or when fixed In California, the endorsement must be included in
items are being removed and not every commercial property policy. It allows cancel-
replaced? lation by the insurer with 5 days' notice for sever-
al reasons: vacancy or unoccupancy for 60 or more
5 days; damages from a prior covered loss haven't been
21 started; the government has ordered demolition or
10 to vacate; fixed items are being removed and not re-
30 placed; and, utilities are shut off for 30 or more days,
or property taxes are more than one year past due.
3. Upon request made by the con- In writing and mailed to the consumer within 5 days
sumer, a person who procures an of the request..
investigative consumer report on EXPLANATION:
the consumer must make a com- This disclosure must be made in writing and mailed
plete and accurate disclosure to the or otherwise delivered to the consumer no later than
consumer of the nature of the re- five days after the date on which the request for the
port and investigation within: disclosure was received from the consumer.
Page 1 of 48
, CA Adjusters License PSI
CA Adjusters License PSI
Study online at https://quizlet.com/_1v9zkz
In writing and mailed to the con-
sumer within 30 days of the re-
quest.
In writing and mailed to the con-
sumer within 15 days of the re-
quest.
In writing and mailed to the con-
sumer within 10 days of the re-
quest.
In writing and mailed to the con-
sumer within 5 days of the request.
4. The insured has primary bodily in- The correct answer is: The insured was sued for
jury and property damage liability $10,000 in bodily injury damages.
coverage with a $100,000 limit, and
a $1 million umbrella liability policy EXPLANATION:
with a $5,000 self-insured retention The claim would fall under the underlying coverage
limit. In which one of the follow- and not the umbrella because the underlying cover-
ing situations would the insured's age has sufficient limits in place.
umbrella liability policy typically not
Question 5 of 100
provide defense coverage?
Answer Choices: Select the Correct
Answer
Five people sued the insured for
property damage arising out of one
occurrence. One of the cases was
settled out of court for $100,000.
The insured was sued for $150,000
in personal injury damages.
The insured was sued for $10,000 in
bodily injury damages.
Page 2 of 48
, CA Adjusters License PSI
CA Adjusters License PSI
Study online at https://quizlet.com/_1v9zkz
The umbrella liability policy would
provide a defense in all three cases.
5. The BAP liability exclusion pertain- The escape of pollutants caused by damage to the
ing to pollution removes coverage property containing them when the damage results
for each of the following, except: from the use of a covered auto. is correct.
Answer Choices: Select the Correct EXPLANATION:
Answer If the insured's vehicle causes an accident with anoth-
The cost of governmentally ordered er vehicle or other property (owned by a third party)
clean-up of pollutants. containing the pollutants, the loss is covered.
The escape of pollutants while be-
ing transported by a covered auto.
The escape of pollutants caused by
damage to the property contain-
ing them when the damage results
from the use of a covered auto.
The escape of pollutants before
they are accepted by the insured for
movement onto a covered auto.
6. Which of the following would not be The correct answer is: Glass breakage.
covered under the specified cause EXPLANATION:
of loss physical damage coverage The specified cause of loss form covers the following
under the commercial auto form? perils: fire, lighting, explosion, theft, windstorm, hail,
earthquake, flood, vandalism or mischief, transporta-
Glass breakage tion by a conveyance. The coverage does not include
Fire glass breakage, hitting a bird or animal nor falling
Lightning objects or missiles.
Flood
7. All of the following events are con- The correct answer is: Acts of riot and civil commotion.
sidered acts of terrorism, EXCEPT: .
EXPLANATION:
Page 3 of 48
, CA Adjusters License PSI
CA Adjusters License PSI
Study online at https://quizlet.com/_1v9zkz
Acts of riot and civil commotion. Acts of riot and civil commotion are not covered by
Acts considered dangerous to hu- the Act. These are perils that are covered by property
man life, property or infrastructure. insurance policies.
Acts resulting in damage within or
outside the United States.
Acts at the premises of any United
States mission.
8. A company or staff adjuster repre- The insurer. is correct.
sents the interests of: EXPLANATION:
Company or staff adjusters are individuals employed
The insurer. by a property and casualty insurance company to
The insured. settle on its behalf claims brought by insureds. They
The claimant. work directly for the insurance company as year-round
The public. salaried employees. Staff adjusters evaluate the mer-
its of each claim and make recommendations to the
insurance company.
9. Under the Personal Auto Policy the In addition to the limit of liability. is correct.
Supplementary Payments coverage EXPLANATION:
is: Supplementary Payments are in addition to the Limits
Answer Choices: Select the Correct of Liability.
Answer
In addition to the limit of liability.
Added by endorsement.
Included in the limit of liability.
Not available under the personal
auto policy.
10. When a first party claim is made, Type of coverage under which payment is made is
what must be listed on the payment correct.
draft? EXPLANATION:
Page 4 of 48
