CALIFORNIA ADJUSTER PSI PRACTICE TEST
PAPER 2026 COMPLETE QUESTIONS
CORRECT ANSWERS VERIFIED CLAIMS
ADJUSTING CERTIFICATION STUDY
MATERIAL GRADED A+
⩥ 2. A claimant can be any of the following EXCEPT? Answer: o a
person who is conducting an investigation of a claim on behalf of an
insurer.
⩥ 3. When should an insurer provide for the continuous operation of a
unit or division to investigate possible fraudulent claims? Answer: o If
admitted to do business in this state, except those otherwise exempted.
⩥ According to CIC Section 1711, an organization ceases to exist as an
entity eligible to hold a license EXCEPT? Answer: o Upon the
termination of all contracts
⩥ 5. All of the following define insolvency EXCEPT? Answer: o
revocation of certificate of authority by the commissioner.
⩥ 6. As used in the insurance code, the word "shall" is mandatory and
the word "may" is permissive EXCEPT? Answer: o unless otherwise
apparent from the context.
,⩥ 7. Which of the following terms refers to any evidence or
documentation in the possession of the insurer that provides any
evidence of a claim and that reasonably supports the magnitude or the
amount of the claimant loss? Answer: o Poof of claim
⩥ 8. When examination of an insurer shows the insurer to be insolvent
and a danger to the public, which authority is granted to the
Commissioner by the CIC? Answer: o The commissioner may take
possession of offices, books and property immediately without court
order.
⩥ 9. An insurance agent is a person who transacts all of the following
types of insurance EXCEPT Answer: o Life insurance
⩥ 10. Which of the following is TRUE regarding continuing education
requirements of an agent or broker? Answer: o Any licensee shall
satisfactorily complete 24 hours of instruction prior to license renewal.
⩥ 11. All of the following are included as definitions of "transact" as
applied to insurance EXCEPT? Answer: o Underwriting
⩥ 12. Which group of people is offered additional protection by the
Unfair Practices Act that regulates trade practices in the business of
insurance? Answer: o Survivors of the Holocaust
, ⩥ 13. Which of the following can the insurer do if the insured
intentionally conceals or misrepresents a material fact concerning any
coverage part? Answer: o Rescind the contract
⩥ 14. While both work with an insurer, how does an "Insurance broker"
differ from an "insurance agent"? Answer: o The broker does not
transact on behalf of an insurer, while the agent does.
⩥ 15. How can a licensee surrender any license for cancellation?
Answer: o By submitting written notice or by delivering the license to
the commissioner
⩥ 16. The following are all penalties for unlawfully acting as an insurer
without a certificate of authority EXCEPT? Answer: The individual will
be banned from practicing insurance for a period of 5 years
⩥ 17. Materiality to be solely determined by which of the following?
Answer: o The probable and reasonable influence of the facts upon the
party to whom the communication is due
⩥ 18. What is a solicitor employed to do for a policy other than life?
Answer: To aid a property and casualty agent or broker in transacting
insurance.
PAPER 2026 COMPLETE QUESTIONS
CORRECT ANSWERS VERIFIED CLAIMS
ADJUSTING CERTIFICATION STUDY
MATERIAL GRADED A+
⩥ 2. A claimant can be any of the following EXCEPT? Answer: o a
person who is conducting an investigation of a claim on behalf of an
insurer.
⩥ 3. When should an insurer provide for the continuous operation of a
unit or division to investigate possible fraudulent claims? Answer: o If
admitted to do business in this state, except those otherwise exempted.
⩥ According to CIC Section 1711, an organization ceases to exist as an
entity eligible to hold a license EXCEPT? Answer: o Upon the
termination of all contracts
⩥ 5. All of the following define insolvency EXCEPT? Answer: o
revocation of certificate of authority by the commissioner.
⩥ 6. As used in the insurance code, the word "shall" is mandatory and
the word "may" is permissive EXCEPT? Answer: o unless otherwise
apparent from the context.
,⩥ 7. Which of the following terms refers to any evidence or
documentation in the possession of the insurer that provides any
evidence of a claim and that reasonably supports the magnitude or the
amount of the claimant loss? Answer: o Poof of claim
⩥ 8. When examination of an insurer shows the insurer to be insolvent
and a danger to the public, which authority is granted to the
Commissioner by the CIC? Answer: o The commissioner may take
possession of offices, books and property immediately without court
order.
⩥ 9. An insurance agent is a person who transacts all of the following
types of insurance EXCEPT Answer: o Life insurance
⩥ 10. Which of the following is TRUE regarding continuing education
requirements of an agent or broker? Answer: o Any licensee shall
satisfactorily complete 24 hours of instruction prior to license renewal.
⩥ 11. All of the following are included as definitions of "transact" as
applied to insurance EXCEPT? Answer: o Underwriting
⩥ 12. Which group of people is offered additional protection by the
Unfair Practices Act that regulates trade practices in the business of
insurance? Answer: o Survivors of the Holocaust
, ⩥ 13. Which of the following can the insurer do if the insured
intentionally conceals or misrepresents a material fact concerning any
coverage part? Answer: o Rescind the contract
⩥ 14. While both work with an insurer, how does an "Insurance broker"
differ from an "insurance agent"? Answer: o The broker does not
transact on behalf of an insurer, while the agent does.
⩥ 15. How can a licensee surrender any license for cancellation?
Answer: o By submitting written notice or by delivering the license to
the commissioner
⩥ 16. The following are all penalties for unlawfully acting as an insurer
without a certificate of authority EXCEPT? Answer: The individual will
be banned from practicing insurance for a period of 5 years
⩥ 17. Materiality to be solely determined by which of the following?
Answer: o The probable and reasonable influence of the facts upon the
party to whom the communication is due
⩥ 18. What is a solicitor employed to do for a policy other than life?
Answer: To aid a property and casualty agent or broker in transacting
insurance.
