California Public Adjuster Licensing
EXAM STUDY GUIDE 2026/2027
ACCURATE QUESTIONS WITH
CORRECT DETAILED SOLUTIONS ||
100% GUARANTEED PASS
<NEWEST VERSION>
1. California Insurance Adjuster License Examination - ANSWER ✔ An
examination that must be passed to qualify as a manager.
2. Compensated Time - ANSWER ✔ Refers to the paid hours worked in the
insurance adjusting field.
3. Commissioner - ANSWER ✔ means the Insurance Commissioner
4. Department - ANSWER ✔ means the Department of Insurance
5. Licensee - ANSWER ✔ means a person licensed according to the
California Insurance Adjuster Act
6. Manager - ANSWER ✔ means the individual under whose direction,
control, charge, or management the business of a licensee is operated
7. Person - ANSWER ✔ includes any individual, firm, company, association,
organization, partnership, limited liability company, and corporation. (CIC
14001)
8. 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)
,9. 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
10.Insurance Commissioner - ANSWER ✔ will administer and enforce the
provisions of the insurance code
11.Management of adjuster licensee - ANSWER ✔ The business of each
adjuster licensee must be operated under the active direction, control, charge
or management of that licensee, if they are qualified, or a qualified manager
if the person does not hold a license.
12.Notification of management changes - ANSWER ✔ If a manager ceases to
provide direction to a licensee or nonlicensed adjuster, the Commissioner
must be notified within 30 days.
13.Change of address notification - ANSWER ✔ A licensee must, within 30
days after such change, notify the Department of any change of his/her
address and of any change in the officers or partners of such licensee.
14.Principal place of business - ANSWER ✔ The principal place of business
may be at a home or at a business address, but it must be the place at which
the licensee maintains a permanent office.
15.Application submission for new officers - ANSWER ✔ Applications, on
forms prescribed by the Commissioner, must be submitted by all new
officers or partners.
16.Records - ANSWER ✔ A copy of all records relating to claims or loss
adjusted or investigated and all activities in connection with investigating,
adjusting, appraising or otherwise participating in the disposal, settlement, or
investigation of any claim under or in connection with a policy of insurance
must be maintained at and must be available for inspection by the
Department of Insurance at the location from which the business was
conducted or transacted for at least five years from the date such business
was conducted or transacted.
,17.Branch Offices - ANSWER ✔ A licensee may not advertise or conduct
business from any location other than that shown on the records of the
Commissioner as his/her principal place of business unless he/she has
received a branch office certificate for that location.
18.Branch Office Notification - ANSWER ✔ A licensee must notify the
Commissioner in writing within 10 days after closing or changing the
location of a branch office.
19.Branch Office Management - ANSWER ✔ A branch office must be under
the active management, direction and control of the licensee or his manager,
with a designated person in charge of the branch office.
20.Branch Office Manager Reporting - ANSWER ✔ The licensee must report
to the Commissioner the name of each person appointed as branch office
manager within 10 days of the appointment.
21.Branch Office Definition - ANSWER ✔ A branch office must be a
bonafide place of business maintaining reasonable hours for service to
customers.
22.Non-qualifying Branch Office - ANSWER ✔ A telephone answering
service or mail service at any office or location which is not under the active
direction, control, charge and management of the licensee or the licensee's
manager does not qualify as a branch office.
23.Application for Business Location - ANSWER ✔ An application to
conduct business from any location other than the principal place of business
must be submitted on a form prescribed by the Commissioner and
accompanied by the prescribed fee.
24.California FAIR Plan Purpose - ANSWER ✔ To cover high-risk
properties.
25.Standard Homeowners Insurance Exclusions - ANSWER ✔ Earthquake
damage is excluded.
, 26.A business owner, who is insured with a business auto policy, is interested
in purchasing the necessary liability coverage for any losses and subsequent
claims that result from an employee's use of their own vehicles. What would
be the best way to do this? - ANSWER ✔ buy employer's non ownership
liability in the business auto policy
27.Liability exposures that result from the location of a business in addition to
the activities of that business, is known as which of the following? -
ANSWER ✔ the premises and operations exposure
28.The symbol "4" on a business auto policy indicates coverage for which of
the following categories of vehicles? - ANSWER ✔ owned autos other
than private passenger auto
29.What des ocean marine hull insurance cover? - ANSWER ✔ the vessel
itself
30.In a commercial property policy, which causes of loss includes coverage for
the peril of glass breakage? - ANSWER ✔ the broad and special form
31.Which of the following types of businesses could utilize a business owners
policy? - ANSWER ✔ office building 2 stories high and containing about
5,000 square feet
32.Identify which of the following is always included in a commercial package
policy? - ANSWER ✔ common policy declaration and conditions
33.The medical payments coverage found in a commercial general liability
applies to which of the following categories of individuals - ANSWER ✔
the insured's customers who are in the process of transacting business on the
insured's premises
34.Which of the following coverage parts is not found in standard commercial
policy? - ANSWER ✔ the dwelling property coverage part
35.Which of the following is covered under worker's compensation policy -
ANSWER ✔ an employee accidently getting injured, at a customer's home
while working at the customer's home
EXAM STUDY GUIDE 2026/2027
ACCURATE QUESTIONS WITH
CORRECT DETAILED SOLUTIONS ||
100% GUARANTEED PASS
<NEWEST VERSION>
1. California Insurance Adjuster License Examination - ANSWER ✔ An
examination that must be passed to qualify as a manager.
2. Compensated Time - ANSWER ✔ Refers to the paid hours worked in the
insurance adjusting field.
3. Commissioner - ANSWER ✔ means the Insurance Commissioner
4. Department - ANSWER ✔ means the Department of Insurance
5. Licensee - ANSWER ✔ means a person licensed according to the
California Insurance Adjuster Act
6. Manager - ANSWER ✔ means the individual under whose direction,
control, charge, or management the business of a licensee is operated
7. Person - ANSWER ✔ includes any individual, firm, company, association,
organization, partnership, limited liability company, and corporation. (CIC
14001)
8. 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)
,9. 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
10.Insurance Commissioner - ANSWER ✔ will administer and enforce the
provisions of the insurance code
11.Management of adjuster licensee - ANSWER ✔ The business of each
adjuster licensee must be operated under the active direction, control, charge
or management of that licensee, if they are qualified, or a qualified manager
if the person does not hold a license.
12.Notification of management changes - ANSWER ✔ If a manager ceases to
provide direction to a licensee or nonlicensed adjuster, the Commissioner
must be notified within 30 days.
13.Change of address notification - ANSWER ✔ A licensee must, within 30
days after such change, notify the Department of any change of his/her
address and of any change in the officers or partners of such licensee.
14.Principal place of business - ANSWER ✔ The principal place of business
may be at a home or at a business address, but it must be the place at which
the licensee maintains a permanent office.
15.Application submission for new officers - ANSWER ✔ Applications, on
forms prescribed by the Commissioner, must be submitted by all new
officers or partners.
16.Records - ANSWER ✔ A copy of all records relating to claims or loss
adjusted or investigated and all activities in connection with investigating,
adjusting, appraising or otherwise participating in the disposal, settlement, or
investigation of any claim under or in connection with a policy of insurance
must be maintained at and must be available for inspection by the
Department of Insurance at the location from which the business was
conducted or transacted for at least five years from the date such business
was conducted or transacted.
,17.Branch Offices - ANSWER ✔ A licensee may not advertise or conduct
business from any location other than that shown on the records of the
Commissioner as his/her principal place of business unless he/she has
received a branch office certificate for that location.
18.Branch Office Notification - ANSWER ✔ A licensee must notify the
Commissioner in writing within 10 days after closing or changing the
location of a branch office.
19.Branch Office Management - ANSWER ✔ A branch office must be under
the active management, direction and control of the licensee or his manager,
with a designated person in charge of the branch office.
20.Branch Office Manager Reporting - ANSWER ✔ The licensee must report
to the Commissioner the name of each person appointed as branch office
manager within 10 days of the appointment.
21.Branch Office Definition - ANSWER ✔ A branch office must be a
bonafide place of business maintaining reasonable hours for service to
customers.
22.Non-qualifying Branch Office - ANSWER ✔ A telephone answering
service or mail service at any office or location which is not under the active
direction, control, charge and management of the licensee or the licensee's
manager does not qualify as a branch office.
23.Application for Business Location - ANSWER ✔ An application to
conduct business from any location other than the principal place of business
must be submitted on a form prescribed by the Commissioner and
accompanied by the prescribed fee.
24.California FAIR Plan Purpose - ANSWER ✔ To cover high-risk
properties.
25.Standard Homeowners Insurance Exclusions - ANSWER ✔ Earthquake
damage is excluded.
, 26.A business owner, who is insured with a business auto policy, is interested
in purchasing the necessary liability coverage for any losses and subsequent
claims that result from an employee's use of their own vehicles. What would
be the best way to do this? - ANSWER ✔ buy employer's non ownership
liability in the business auto policy
27.Liability exposures that result from the location of a business in addition to
the activities of that business, is known as which of the following? -
ANSWER ✔ the premises and operations exposure
28.The symbol "4" on a business auto policy indicates coverage for which of
the following categories of vehicles? - ANSWER ✔ owned autos other
than private passenger auto
29.What des ocean marine hull insurance cover? - ANSWER ✔ the vessel
itself
30.In a commercial property policy, which causes of loss includes coverage for
the peril of glass breakage? - ANSWER ✔ the broad and special form
31.Which of the following types of businesses could utilize a business owners
policy? - ANSWER ✔ office building 2 stories high and containing about
5,000 square feet
32.Identify which of the following is always included in a commercial package
policy? - ANSWER ✔ common policy declaration and conditions
33.The medical payments coverage found in a commercial general liability
applies to which of the following categories of individuals - ANSWER ✔
the insured's customers who are in the process of transacting business on the
insured's premises
34.Which of the following coverage parts is not found in standard commercial
policy? - ANSWER ✔ the dwelling property coverage part
35.Which of the following is covered under worker's compensation policy -
ANSWER ✔ an employee accidently getting injured, at a customer's home
while working at the customer's home
