CALIFORNIA ADJUSTER PSI EXAM QUESTIONS AND ANSWERS

CALIFORNIA ADJUSTER PSI EXAM QUESTIONS
AND ANSWERS 2026-2027

Duty of an insurer in case of a loss - CORRECT ANSWER -
The insurer is required to conduct a thorough investigation, establish claim procedures and m
ethods of documentation, and acknowledge receipt of a claim in a timely fashion.



Responsibility of an insured in case of a loss - CORRECT ANSWER -
The insured must separate the damaged property from the undamaged property and protect t
he property from further loss.



Definition of 'additional coverages' in insurance policies - CORRECT ANSWER -
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 - CORRECT ANSWER -
To be eligible for a salvage award, the property involved must be in peril from some hazard, th
e salvage service must be voluntary, and the salvage effort must be successful.



Contents of an endorsement for water backup through a sewer or drain - CORRECT ANSWER -
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.



Duties of an insured when filing a claim - CORRECT ANSWER -
When filing a claim, the insured is responsible for providing a proof of loss statement, preservi
ng the undamaged property, and fully cooperating in providing relevant books and records.



Example of an act that could lead to injury - CORRECT ANSWER -
An example of an act that could lead to injury is the improper protection of a job site by a con
tractor.

, Coverage limit for a single-family residence under the regular flood program -
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CORRECT ANSWER -The coverage limit for a single-
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family residence under the regular flood program is $250,000.
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Eligibility for a Businessowners Policy - CORRECT ANSWER -
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A funeral home is eligible for a Businessowners Policy.
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Application of self-insured retention in an umbrella policy - CORRECT ANSWER -Self-
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insured retention is applied in an umbrella policy when the umbrella policy covers a liability cl aim
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that is excluded by primary policies.
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Duration of disability period for an injured employee to receive temporary disability compensa ti
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on - CORRECT ANSWER -
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An injured employee must be disabled for a period beyond 14 days to receive temporary disa bilit
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y compensation.
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Purpose of an attorney providing notice of deposition - CORRECT ANSWER -
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The purpose of an attorney providing notice of deposition is to secure a recorded statement u nder
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oath.



Definition of preauthorization/precertification - CORRECT ANSWER -
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Preauthorization/precertification is the determination by a health benefit plan that proposed he X2 X2 X2 X2 X2 X2 X2 X2 X2 X2 X2




alth care services are medically necessary.
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Subrogation by an insurance company - CORRECT ANSWER - X2 X2 X2 X2 X2 X2 X2 X2




An insurance company can subrogate for the actual amount paid, plus the insured's deductible
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.



Requirement under a Commercial Property Policy to be covered for the peril of freezing -
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CORRECT ANSWER -
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