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CA ADJUSTERS LICENSE PSI EXAM
2024-2025 ACTUAL EXAM COMPLETE
200 QUESTIONS WITH DETAILED
VERIFIED ANSWERS (100% CORRECT
ANSWERS) AND EXPLANATION /
ALREADY GRADED A+
A ship has negligently collided with another ship and
caused severe damage. What coverage would apply
to cover this claim?
Answer Choices: Select the Correct Answer
Hull insurance with the "running down clause".
Protection and Indemnity.
Inchmaree clause.
Towage clause. - ....ANSWER...Hull insurance with
the "running down clause". is correct.
EXPLANATION:
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Hull insurance with the "running down clause" would
respond to cover this claim.
A license issued by the Commissioner that contains
certain conditions is called:
Answer Choices: Select the Correct Answer
A restricted license.
A temporary license.
A surplus lines license.
A non-restricted license. - ....ANSWER...A restricted
license. is correct.
EXPLANATION:
A restricted license is a license that is issued by the
Commissioner with reasonable restrictions on the
license and license holder.
An insured has $500 cash stolen from her home.
How much can she collect under a standard
homeowner policy?
Answer Choices: Select the Correct Answer
$500
$200
0
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$100 - ....ANSWER...The correct answer is: $200.
EXPLANATION:
The standard homeowner policy limits coverage for
cash to only $200.
All the following are reasons that a driver would be
insured under the assigned risk plan, EXCEPT:
Answer Choices: Select the Correct Answer
They desire to save premium
They are uninsurable in the standard markets
They have had too many claims
They cannot show evidence of satisfying the financial
responsibility law of the state - ....ANSWER...They
desire to save premium is correct.
EXPLANATION:
Those drivers with a poor driving records or DUI
charges are usually declined by the standard
insurance markets. The only auto insurance market
for them is the assigned risk plan. The plan is never
used to save premium.
All the following are included in the definition of
insolvency, EXCEPT:
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Answer Choices: Select the Correct Answer
impairment of minimum "paid-in capital" required in
the aggregate of an insurer.
the inability of the insurer to meet its financial
obligations when they are due.
the revocation of an insurer's certificate of authority.
the inability of the insurer to fully reinsure all
outstanding risks. - ....ANSWER...the revocation of an
insurer's certificate of authority. is correct.
EXPLANATION:
According to the California Insurance Code (CIC 985),
revocation of an insurer's certificate of authority is
not included in the definition of insolvency.
A method of replacing damaged property with
something not exactly like the damaged item, but
will perform the same is known as:
Answer Choices: Select the Correct Answer
Agreed Replacement Value.
Stated Amount Value.
Functional Replacement Cost.
Replacement Cost. - ....ANSWER...The correct answer
is: Functional Replacement Cost..
CA ADJUSTERS LICENSE PSI EXAM
2024-2025 ACTUAL EXAM COMPLETE
200 QUESTIONS WITH DETAILED
VERIFIED ANSWERS (100% CORRECT
ANSWERS) AND EXPLANATION /
ALREADY GRADED A+
A ship has negligently collided with another ship and
caused severe damage. What coverage would apply
to cover this claim?
Answer Choices: Select the Correct Answer
Hull insurance with the "running down clause".
Protection and Indemnity.
Inchmaree clause.
Towage clause. - ....ANSWER...Hull insurance with
the "running down clause". is correct.
EXPLANATION:
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Hull insurance with the "running down clause" would
respond to cover this claim.
A license issued by the Commissioner that contains
certain conditions is called:
Answer Choices: Select the Correct Answer
A restricted license.
A temporary license.
A surplus lines license.
A non-restricted license. - ....ANSWER...A restricted
license. is correct.
EXPLANATION:
A restricted license is a license that is issued by the
Commissioner with reasonable restrictions on the
license and license holder.
An insured has $500 cash stolen from her home.
How much can she collect under a standard
homeowner policy?
Answer Choices: Select the Correct Answer
$500
$200
0
,3|Page
$100 - ....ANSWER...The correct answer is: $200.
EXPLANATION:
The standard homeowner policy limits coverage for
cash to only $200.
All the following are reasons that a driver would be
insured under the assigned risk plan, EXCEPT:
Answer Choices: Select the Correct Answer
They desire to save premium
They are uninsurable in the standard markets
They have had too many claims
They cannot show evidence of satisfying the financial
responsibility law of the state - ....ANSWER...They
desire to save premium is correct.
EXPLANATION:
Those drivers with a poor driving records or DUI
charges are usually declined by the standard
insurance markets. The only auto insurance market
for them is the assigned risk plan. The plan is never
used to save premium.
All the following are included in the definition of
insolvency, EXCEPT:
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Answer Choices: Select the Correct Answer
impairment of minimum "paid-in capital" required in
the aggregate of an insurer.
the inability of the insurer to meet its financial
obligations when they are due.
the revocation of an insurer's certificate of authority.
the inability of the insurer to fully reinsure all
outstanding risks. - ....ANSWER...the revocation of an
insurer's certificate of authority. is correct.
EXPLANATION:
According to the California Insurance Code (CIC 985),
revocation of an insurer's certificate of authority is
not included in the definition of insolvency.
A method of replacing damaged property with
something not exactly like the damaged item, but
will perform the same is known as:
Answer Choices: Select the Correct Answer
Agreed Replacement Value.
Stated Amount Value.
Functional Replacement Cost.
Replacement Cost. - ....ANSWER...The correct answer
is: Functional Replacement Cost..
