CA ADJUSTERS LICENSE PSI FINAL
EVALUATION SCRIPT 2026 THOROUGH
TWO HUNDRED QUESTIONS WITH
ACCURATE SOLUTIONS AND DETAILED
EXPLANATIONS ALREADY PASSED
GRADED A+
⩥ Which of the following can be categorized as liability doctrines?
Vicarious
Res Ipsa Loquitur
Strict
All of the Responses are Correct. Answer: The correct answer is: All of
the Responses are Correct.
EXPLANATION:
All of these terms can be categorized a liability doctrines. Res Ipsa
Loquitur means "the thing speaks for itself."
⩥ Under an HO-3 form materials and supplies to be used in
construction, alteration or repair of the structure and kept next to the
residence premises are covered:
,If they have been at the location more than 30 days.
If they have been at the location less than 30 days.
Only if they are lost due to an insured peril.
Only if they are lost due to fire.. Answer: The correct answer is: Only if
they are lost due to an insured peril.
The items would be covered if destroyed by an insured peril. Note that
the items must either be on the insured's residence premises or next to
the residence premises such as in a neighbor's garage.
⩥ Under an Equipment Breakdown Protection policy with $500,000 in
coverage, a covered "accident" resulted in the following:
I. $500,000 worth of damage to the property.
II. $10,000 damage to the property of another in the insured's care.
III. $5,000 in legal fees to defend the insured in this case.
The policy will pay a total of:
$505,000.
$500,000.
$510,000.
,$515,000.. Answer: The correct answer is: $505,000.
EXPLANATION:
The maximum that can be paid is the limit of the policy. Legal expenses
are in addition to the limit of coverage.
⩥ The insured is insured under a DP-3 dwelling form and is remodeling
the dwelling. He does not have a place to store the materials. His next
door neighbor permits the insured to store the materials in his garage.
The garage is destroyed by fire and the materials are also destroyed.
Which of the following applies?
- The policy has a special limit under an extension of coverage that
applies.
- Coverage is included under the building coverage and would apply
since the materials are next to the insured's premises.
- The policy would not pay the claim since the materials were off the
insured's residence premises.
- The materials must be in an enclosed structure for coverage to apply..
Answer: The correct answer is: Coverage is included under the building
coverage and would apply since the materials are next to the insured's
premises.
EXPLANATION:
, The policy would respond to pay the loss because the policy covers
building materials located on or next to the insured premises.
⩥ All of the following are necessary for Liability coverage to apply
under the PAP, except:
The insured must not have been drinking.
The person liable must be an insured person.
The insured must be legally liable for the accident.
The damage or injury must be the result of an auto accident.. Answer:
The correct answer is: The insured must not have been drinking.
It is not necessary that the insured not have been drinking alcohol at the
time of the accident. Coverage would still apply.
⩥ Under an equipment dealer's form, which of the following would not
be covered?
Inventory
Serviced items
Customer's property on the insured's premises
Vehicles for highway use. Answer: The correct answer is: Vehicles for
highway use.
EXPLANATION:
EVALUATION SCRIPT 2026 THOROUGH
TWO HUNDRED QUESTIONS WITH
ACCURATE SOLUTIONS AND DETAILED
EXPLANATIONS ALREADY PASSED
GRADED A+
⩥ Which of the following can be categorized as liability doctrines?
Vicarious
Res Ipsa Loquitur
Strict
All of the Responses are Correct. Answer: The correct answer is: All of
the Responses are Correct.
EXPLANATION:
All of these terms can be categorized a liability doctrines. Res Ipsa
Loquitur means "the thing speaks for itself."
⩥ Under an HO-3 form materials and supplies to be used in
construction, alteration or repair of the structure and kept next to the
residence premises are covered:
,If they have been at the location more than 30 days.
If they have been at the location less than 30 days.
Only if they are lost due to an insured peril.
Only if they are lost due to fire.. Answer: The correct answer is: Only if
they are lost due to an insured peril.
The items would be covered if destroyed by an insured peril. Note that
the items must either be on the insured's residence premises or next to
the residence premises such as in a neighbor's garage.
⩥ Under an Equipment Breakdown Protection policy with $500,000 in
coverage, a covered "accident" resulted in the following:
I. $500,000 worth of damage to the property.
II. $10,000 damage to the property of another in the insured's care.
III. $5,000 in legal fees to defend the insured in this case.
The policy will pay a total of:
$505,000.
$500,000.
$510,000.
,$515,000.. Answer: The correct answer is: $505,000.
EXPLANATION:
The maximum that can be paid is the limit of the policy. Legal expenses
are in addition to the limit of coverage.
⩥ The insured is insured under a DP-3 dwelling form and is remodeling
the dwelling. He does not have a place to store the materials. His next
door neighbor permits the insured to store the materials in his garage.
The garage is destroyed by fire and the materials are also destroyed.
Which of the following applies?
- The policy has a special limit under an extension of coverage that
applies.
- Coverage is included under the building coverage and would apply
since the materials are next to the insured's premises.
- The policy would not pay the claim since the materials were off the
insured's residence premises.
- The materials must be in an enclosed structure for coverage to apply..
Answer: The correct answer is: Coverage is included under the building
coverage and would apply since the materials are next to the insured's
premises.
EXPLANATION:
, The policy would respond to pay the loss because the policy covers
building materials located on or next to the insured premises.
⩥ All of the following are necessary for Liability coverage to apply
under the PAP, except:
The insured must not have been drinking.
The person liable must be an insured person.
The insured must be legally liable for the accident.
The damage or injury must be the result of an auto accident.. Answer:
The correct answer is: The insured must not have been drinking.
It is not necessary that the insured not have been drinking alcohol at the
time of the accident. Coverage would still apply.
⩥ Under an equipment dealer's form, which of the following would not
be covered?
Inventory
Serviced items
Customer's property on the insured's premises
Vehicles for highway use. Answer: The correct answer is: Vehicles for
highway use.
EXPLANATION:
