PSI California Independent Adjuster License Exam Questions and Answers | Updated 2026 | Graded A+

PSI California Independent Adjuster License Exam Questions and Answers | Updated 2026 | Graded A+ What additional coverage is provided in a DP-3 that is not included in a DP-1? - answer-Collapse Upon policy renewal, insurer must notify the insured of any reductions of limits or elimination of coverage __ days before cancellation - answer-45 The limited Mexico coverage endorsement applies to trips into Mexico with a duration of ___ days or less - answer-10 All premiums and any policy fees in pet insurance shall be refunded within___ days of notification of cancellation - answer-30 What is the peril included in DP-2 that is not in DP-1? A. explosion B. Falling objects C. Volcanic eruption D. Sinkhole Collapse - answer-Falling objects For a total loss of a furnished residence declared "state of emergency" an insurer must provide payment for contents of no less than what %? - answer-30%How often must an insurer advise a claimant of the status of an unresolved investigation subsequent to the receipt of proof of claim? - answer-30? Under a building & personal property coverage form, if the insureds building has been vacant for more than 60 days and is damaged by a fire, the loss is reduced by what percentage - answer-15% If an employee steals money from insureds company, what kind of insurance do they need? - answer-Crime Insurance One of the major advantages of the Commercial Line Package policy over coverage on a monoline basis is the - answer-Convenience of having the coverage in one policy When a loss requires replacement of items & the replaced items do NOT match, the insurer shall - - answer-Replace all items in damaged area to conform to a reasonably uniform appearance All of the following are duties of the mortgagee except - answer-Reimburse the insurer for any loss payments Coverage under a Comprehensive Personal Liability policy or a homeowners section II extends - - answer-To the premises described and to the personal activities of the insureds on or off of the premises Compensation allowed for specified out-of-pocket expenses is called: - answer-Special A trade engaged on homeowners residence on a part time basis is defined on an HO policy as: - answer-A businessWhat are the two forms of commercial crime insurance? - answer-1. Loss Sustained Form: Covers losses that occur during the policy period 2. Discovery Form: Covers losses that are discovered during policy period (up to 60 days after policy expires no matter when they occur) Motor Carrier is : - answer-one who transports goods or passengers Trucker Insurance Policy symbols include - answer-Symbols 41 through 49 According to the BAP what is not included in the "auto" definition? - answer-Mobile equipment such as tractors or fork-lifts not designed for use on public roads Business Auto Policy coverage symbol #1 includes: - answer-Any auto: usually only liability What are the 4 types of Commercial Auto Insurance? - answer-1. Basic Business Auto Policy 2. Garage Policy or garage keepers 3. Truckers Policy 4. Motor Carrier Policy What is an anti- concurrent causation (ACC) clause? - answer-The clause that effectively eliminates coverage during catastrophic situations Are costs associated with defending and investigating a claim against the insured included as Supplementary Payments? - answer-Yes A BOP provides loss of income coverage on a actual total loss sustained basis for how long? - answer-12 monthsCan Inflation guard coverage be added to a BOP at no extra cost? - answer-yes. so can business income, extra expense and pollution cleanup The Business Owners Policy is.... - answer-A type of Commercial Package Policy for small to medium sized businesses integrating multiple lines of insurance into one insurance package In a BOP, what is the General Aggregate Limit in relation to the per occurrence limit? - answerThe general aggregate limit is twice the per occurrence limit What is the claim form basis used for BOP liability? - answer-The occurrence is used, covering damages occurring during the policy term, no matter when the claim is filed 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-IndemnitorGuarantees 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 Who agrees to fill an obligation - answer-Principal, Obligor Commissioner does NOT have the power to - answer-Incarcerate Non-licensed emergency adjusters temporary registration is valid for ___ days - answer-180After agreeing to pay the claim, the insurer has ____ days to make payment - answer-30 In cases where the statue of limitations is reaching a claim, insurer must notify the claimant of this time limit in writing at least ____ days before it expires - answer-60