California Adjuster PSI Exam Questions and Answers
(100% Correct Answers) 2025
Duties of an insured when filing a claim - ✔✔When filing a claim, the insured is responsible for providing
a proof of loss statement, preserving the undamaged property, and fully cooperating in providing
relevant books and records.
Example of an act that could lead to injury - ✔✔An example of an act that could lead to injury is the
improper protection of a job site by a contractor.
Coverage limit for a single-family residence under the regular flood program - ✔✔The coverage limit for
a single-family residence under the regular flood program is $250,000.
Eligibility for a Businessowners Policy - ✔✔A funeral home is eligible for a Businessowners Policy.
Application of self-insured retention in an umbrella policy - ✔✔Self-insured retention is applied in an
umbrella policy when the umbrella policy covers a liability claim that is excluded by primary policies.
Duration of disability period for an injured employee to receive temporary disability compensation -
✔✔An injured employee must be disabled for a period beyond 14 days to receive temporary disability
compensation.
Duty of an insurer in case of a loss - ✔✔The insurer is required to conduct a thorough investigation,
establish claim procedures and methods of documentation, and acknowledge receipt of a claim in a
timely fashion.
Responsibility of an insured in case of a loss - ✔✔The insured must separate the damaged property from
the undamaged property and protect the property from further loss.
Definition of 'additional coverages' in insurance policies - ✔✔Additional coverages are included in
insurance policies at no extra cost. Examples of additional coverages include debris removal and
reasonable repairs.
, Essential conditions for a salvage award - ✔✔To be eligible for a salvage award, the property involved
must be in peril from some hazard, the salvage service must be voluntary, and the salvage effort must be
successful.
Contents of an endorsement for water backup through a sewer or drain - ✔✔An endorsement for water
backup through a sewer or drain includes a separate stated limit of coverage and a separate stated
deductible for covered losses.
Purpose of an attorney providing notice of deposition - ✔✔The purpose of an attorney providing notice
of deposition is to secure a recorded statement under oath.
Definition of preauthorization/precertification - ✔✔Preauthorization/precertification is the
determination by a health benefit plan that proposed health care services are medically necessary.
Subrogation by an insurance company - ✔✔An insurance company can subrogate for the actual amount
paid, plus the insured's deductible.
Requirement under a Commercial Property Policy to be covered for the peril of freezing - ✔✔To be
covered for the peril of freezing under a Commercial Property Policy, the insured must maintain heat in
the building or cut off the water and drain the lines.
Coverages provided under the HO Policy for loss of use - ✔✔The coverages provided under the HO Policy
for loss of use are Additional Living Expense and Fair Rental Value.
Notification of claim investigation - ✔✔Notification of claim investigation is the determination by a
health benefit plan that proposed health care services are medically necessary.
Coverage limit for loss assessment under Section II of homeowner forms - ✔✔The coverage limit for loss
assessment under Section II of homeowner forms is $1,000.
Characteristics of controlled forms - ✔✔Controlled forms are usually issued according to published rules
and rates.
(100% Correct Answers) 2025
Duties of an insured when filing a claim - ✔✔When filing a claim, the insured is responsible for providing
a proof of loss statement, preserving the undamaged property, and fully cooperating in providing
relevant books and records.
Example of an act that could lead to injury - ✔✔An example of an act that could lead to injury is the
improper protection of a job site by a contractor.
Coverage limit for a single-family residence under the regular flood program - ✔✔The coverage limit for
a single-family residence under the regular flood program is $250,000.
Eligibility for a Businessowners Policy - ✔✔A funeral home is eligible for a Businessowners Policy.
Application of self-insured retention in an umbrella policy - ✔✔Self-insured retention is applied in an
umbrella policy when the umbrella policy covers a liability claim that is excluded by primary policies.
Duration of disability period for an injured employee to receive temporary disability compensation -
✔✔An injured employee must be disabled for a period beyond 14 days to receive temporary disability
compensation.
Duty of an insurer in case of a loss - ✔✔The insurer is required to conduct a thorough investigation,
establish claim procedures and methods of documentation, and acknowledge receipt of a claim in a
timely fashion.
Responsibility of an insured in case of a loss - ✔✔The insured must separate the damaged property from
the undamaged property and protect the property from further loss.
Definition of 'additional coverages' in insurance policies - ✔✔Additional coverages are included in
insurance policies at no extra cost. Examples of additional coverages include debris removal and
reasonable repairs.
, Essential conditions for a salvage award - ✔✔To be eligible for a salvage award, the property involved
must be in peril from some hazard, the salvage service must be voluntary, and the salvage effort must be
successful.
Contents of an endorsement for water backup through a sewer or drain - ✔✔An endorsement for water
backup through a sewer or drain includes a separate stated limit of coverage and a separate stated
deductible for covered losses.
Purpose of an attorney providing notice of deposition - ✔✔The purpose of an attorney providing notice
of deposition is to secure a recorded statement under oath.
Definition of preauthorization/precertification - ✔✔Preauthorization/precertification is the
determination by a health benefit plan that proposed health care services are medically necessary.
Subrogation by an insurance company - ✔✔An insurance company can subrogate for the actual amount
paid, plus the insured's deductible.
Requirement under a Commercial Property Policy to be covered for the peril of freezing - ✔✔To be
covered for the peril of freezing under a Commercial Property Policy, the insured must maintain heat in
the building or cut off the water and drain the lines.
Coverages provided under the HO Policy for loss of use - ✔✔The coverages provided under the HO Policy
for loss of use are Additional Living Expense and Fair Rental Value.
Notification of claim investigation - ✔✔Notification of claim investigation is the determination by a
health benefit plan that proposed health care services are medically necessary.
Coverage limit for loss assessment under Section II of homeowner forms - ✔✔The coverage limit for loss
assessment under Section II of homeowner forms is $1,000.
Characteristics of controlled forms - ✔✔Controlled forms are usually issued according to published rules
and rates.
