CALIFORNIA INSURANCE ADJUSTER EXAM
2026 FINAL PREP EXAM SCRIPT
QUESTIONS ACCURATE ANSWERS GRADED
A+
⩥ Department. Answer: means the Department of Insurance
⩥ Licensee. Answer: means a person licensed according to the
California Insurance Adjuster Act
⩥ Manager. Answer: means the individual under whose direction,
control, charge, or management the business of a licensee is operated
⩥ Person. Answer: includes any individual, firm, company, association,
organization, partnership, limited liability company, and corporation.
(CIC 14001)
⩥ California Adjuster Act. Answer: specifies that nothing in the Act
should be construed as entitling any person to practice law in the state,
unless he/she is an active member of the State Bar of California. (CIC
14002)
,⩥ California Insurance Department. Answer: succeeds to and is vested
with all the duties, powers, purposes, responsibilities, and jurisdiction
with respect to the licensing of insurance adjusters
⩥ Insurance Commissioner. Answer: will administer and enforce the
provisions of the insurance code
⩥ State Civil Service Act. Answer: allows the Commissioner to appoint
inspectors, investigators, and other personnel as may be necessary for
the administration and enforcement of the Act
⩥ Qualifications of licensees and managers. Answer: may be fixed by
the Commissioner, in addition to those prescribed in the insurance code,
necessary to promote and protect the public welfare
⩥ Regulation of conduct of licensees. Answer: is included in the
provisions of the insurance code
⩥ Change in classification of a licensee. Answer: may be prescribed by
the Commissioner upon application by a licensee, along with the fee, if
any, to be paid. (CIC 14010 - 14013)
⩥ Engagement in business regulated by the Act. Answer: no person may
engage in a business regulated by the Act or represent him/herself to be a
licensee unless he or she is licensed according to the Act. (CIC 14020)
, ⩥ Insurance adjuster. Answer: is a person other than a private
investigator who, for any consideration whatsoever, engages in the
business of making an investigation for the purpose of obtaining
information in the course of adjusting or participating in the disposal of
any claim in connection with a policy of insurance or engages in
soliciting insurance adjustment business. (CIC 14021)
⩥ Exemptions from the Act. Answer: The California Insurance Adjuster
Act does NOT apply to a person employed exclusively and regularly by
one employer in connection with the affairs of the employer only
⩥ Employer/employee relationship. Answer: must exist, except after a
declared emergency
⩥ Nonlicensed adjusters. Answer: under the supervision of a licensed
adjuster or a qualified manager will require that all nonlicensed adjusters
read and understand the most recent adjuster handbook after a declared
emergency
⩥ Nonlicensed adjuster. Answer: Must complete the reading of the
handbook no later than 15 calendar days from the date on which they
began claims adjusting activity in California.
2026 FINAL PREP EXAM SCRIPT
QUESTIONS ACCURATE ANSWERS GRADED
A+
⩥ Department. Answer: means the Department of Insurance
⩥ Licensee. Answer: means a person licensed according to the
California Insurance Adjuster Act
⩥ Manager. Answer: means the individual under whose direction,
control, charge, or management the business of a licensee is operated
⩥ Person. Answer: includes any individual, firm, company, association,
organization, partnership, limited liability company, and corporation.
(CIC 14001)
⩥ California Adjuster Act. Answer: specifies that nothing in the Act
should be construed as entitling any person to practice law in the state,
unless he/she is an active member of the State Bar of California. (CIC
14002)
,⩥ California Insurance Department. Answer: succeeds to and is vested
with all the duties, powers, purposes, responsibilities, and jurisdiction
with respect to the licensing of insurance adjusters
⩥ Insurance Commissioner. Answer: will administer and enforce the
provisions of the insurance code
⩥ State Civil Service Act. Answer: allows the Commissioner to appoint
inspectors, investigators, and other personnel as may be necessary for
the administration and enforcement of the Act
⩥ Qualifications of licensees and managers. Answer: may be fixed by
the Commissioner, in addition to those prescribed in the insurance code,
necessary to promote and protect the public welfare
⩥ Regulation of conduct of licensees. Answer: is included in the
provisions of the insurance code
⩥ Change in classification of a licensee. Answer: may be prescribed by
the Commissioner upon application by a licensee, along with the fee, if
any, to be paid. (CIC 14010 - 14013)
⩥ Engagement in business regulated by the Act. Answer: no person may
engage in a business regulated by the Act or represent him/herself to be a
licensee unless he or she is licensed according to the Act. (CIC 14020)
, ⩥ Insurance adjuster. Answer: is a person other than a private
investigator who, for any consideration whatsoever, engages in the
business of making an investigation for the purpose of obtaining
information in the course of adjusting or participating in the disposal of
any claim in connection with a policy of insurance or engages in
soliciting insurance adjustment business. (CIC 14021)
⩥ Exemptions from the Act. Answer: The California Insurance Adjuster
Act does NOT apply to a person employed exclusively and regularly by
one employer in connection with the affairs of the employer only
⩥ Employer/employee relationship. Answer: must exist, except after a
declared emergency
⩥ Nonlicensed adjusters. Answer: under the supervision of a licensed
adjuster or a qualified manager will require that all nonlicensed adjusters
read and understand the most recent adjuster handbook after a declared
emergency
⩥ Nonlicensed adjuster. Answer: Must complete the reading of the
handbook no later than 15 calendar days from the date on which they
began claims adjusting activity in California.
