CA ADJUSTERS LICENSE PSI EXAMS WITH
QUESTIONS AND ANSWERS GRADED A+
A company or staff adjuster represents the interests of:
The insurer.
The insured.
The claimant.
The public. - Answers>>>The insurer. is correct.
EXPLANATION:
Company or staff adjusters are individuals employed by a property and casualty insurance company to
settle on its behalf claims brought by insureds. They work directly for the insurance company as year-
round salaried employees. Staff adjusters evaluate the merits of each claim and make recommendations
to the insurance company.
Under the Personal Auto Policy the Supplementary Payments coverage is:
Answer Choices: Select the Correct Answer
In addition to the limit of liability.
Added by endorsement.
Included in the limit of liability.
Not available under the personal auto policy. - Answers>>>In addition to the limit of liability. is correct.
EXPLANATION:
Supplementary Payments are in addition to the Limits of Liability.
When a first party claim is made, what must be listed on the payment draft?
Answer Choices: Select the Correct Answer
,Type of coverage under which payment is made
Details of the accident
Application of the deductible
Drivers license number - Answers>>>Type of coverage under which payment is made is correct.
EXPLANATION:
When a claim payment is made, an indication of the type of coverage under which the payment is made
must be stated on the draft payment.
Under the Commercial Property Policy, the Pro-rata Liability Clause means:
Answer Choices: Select the Correct Answer
Each insurer pays its limits under the policy.
Neither Insurer Pays
Each insurer pays in accordance to the percentage of its coverage bears to the total amount of
insurance.
A Form of Coinsurance Clause - Answers>>>Each insurer pays in accordance to the percentage of its
coverage bears to the total amount of insurance. is correct.
EXPLANATION:
The insurer will not be liable for a greater proportion of a loss than the amount insured will bear to the
whole insurance covering the property against the peril involved, whether collectible or not. This is often
referred to as the "Other Insurance" clause.
David has damaged his vehicle by striking a tree. He can:
I. Take the car to a repair garage recommended by the insurer.
II. Take the car to a garage of his choice.
III. Accept payment based on the adjuster's estimate.
Answer Choices: Select the Correct Answer
,I, II and III
I and II only
I and III only
I only - Answers>>>I, II and III is correct.
EXPLANATION:
The choice belongs to the David, the insured.
Under a farm policy, which of the following would be covered under Coverage A?
Answer Choices: Select the Correct Answer
A structure attached to the dwelling
A structure detached from the dwelling
Dwelling Contents
Livestock - Answers>>>A structure attached to the dwelling is correct.
EXPLANATION:
Coverage A covers the dwelling and any attached structures such as a garage.
Which of the following coverages is included in a Personal Auto Policy without having to issue an
endorsement?
Answer Choices: Select the Correct Answer
Transportation Expenses
Towing and Labor Costs
Miscellaneous Type Vehicles
Named Nonowner - Answers>>>Transportation Expenses.
EXPLANATION:
Transportation expenses are part of the Physical Damage coverage. Some auto policies still provide this
coverage only if the vehicle has been stolen.
, Basic benefits available under a typical workers compensation policy include which of the following?
Other structures are excluded from coverage under the HO-3 when they are:
Smaller than 100 square feet or larger than 1,000 square feet
Smaller than 100 square feet or larger than 500 square feet
Used for storage purposes
Used for business purposes - Answers>>>Used for business purposes is correct.
EXPLANATION:
When the other structures are used for business purposes they are not covered under the homeowner
form. This structure and its contents could be covered under a commercial property policy. An exception
would be a detached structure used to store business property of a non-flammable, non-gaseous nature.
An insurance company must give how many days notice of cancellation for a vacancy of more than 60
days, when the government has ordered demolition, or when fixed items are being removed and not
replaced?
5
21
10
30 - Answers>>>5 is correct.
EXPLANATION:
The cancellation changes endorsement is the "mandatory endorsement" referred to in the question. In
California, the endorsement must be included in every commercial property policy. It allows cancellation
by the insurer with 5 days' notice for several reasons: vacancy or unoccupancy for 60 or more days;
damages from a prior covered loss haven't been started; the government has ordered demolition or to
vacate; fixed items are being removed and not replaced; and, utilities are shut off for 30 or more days, or
property taxes are more than one year past due.
QUESTIONS AND ANSWERS GRADED A+
A company or staff adjuster represents the interests of:
The insurer.
The insured.
The claimant.
The public. - Answers>>>The insurer. is correct.
EXPLANATION:
Company or staff adjusters are individuals employed by a property and casualty insurance company to
settle on its behalf claims brought by insureds. They work directly for the insurance company as year-
round salaried employees. Staff adjusters evaluate the merits of each claim and make recommendations
to the insurance company.
Under the Personal Auto Policy the Supplementary Payments coverage is:
Answer Choices: Select the Correct Answer
In addition to the limit of liability.
Added by endorsement.
Included in the limit of liability.
Not available under the personal auto policy. - Answers>>>In addition to the limit of liability. is correct.
EXPLANATION:
Supplementary Payments are in addition to the Limits of Liability.
When a first party claim is made, what must be listed on the payment draft?
Answer Choices: Select the Correct Answer
,Type of coverage under which payment is made
Details of the accident
Application of the deductible
Drivers license number - Answers>>>Type of coverage under which payment is made is correct.
EXPLANATION:
When a claim payment is made, an indication of the type of coverage under which the payment is made
must be stated on the draft payment.
Under the Commercial Property Policy, the Pro-rata Liability Clause means:
Answer Choices: Select the Correct Answer
Each insurer pays its limits under the policy.
Neither Insurer Pays
Each insurer pays in accordance to the percentage of its coverage bears to the total amount of
insurance.
A Form of Coinsurance Clause - Answers>>>Each insurer pays in accordance to the percentage of its
coverage bears to the total amount of insurance. is correct.
EXPLANATION:
The insurer will not be liable for a greater proportion of a loss than the amount insured will bear to the
whole insurance covering the property against the peril involved, whether collectible or not. This is often
referred to as the "Other Insurance" clause.
David has damaged his vehicle by striking a tree. He can:
I. Take the car to a repair garage recommended by the insurer.
II. Take the car to a garage of his choice.
III. Accept payment based on the adjuster's estimate.
Answer Choices: Select the Correct Answer
,I, II and III
I and II only
I and III only
I only - Answers>>>I, II and III is correct.
EXPLANATION:
The choice belongs to the David, the insured.
Under a farm policy, which of the following would be covered under Coverage A?
Answer Choices: Select the Correct Answer
A structure attached to the dwelling
A structure detached from the dwelling
Dwelling Contents
Livestock - Answers>>>A structure attached to the dwelling is correct.
EXPLANATION:
Coverage A covers the dwelling and any attached structures such as a garage.
Which of the following coverages is included in a Personal Auto Policy without having to issue an
endorsement?
Answer Choices: Select the Correct Answer
Transportation Expenses
Towing and Labor Costs
Miscellaneous Type Vehicles
Named Nonowner - Answers>>>Transportation Expenses.
EXPLANATION:
Transportation expenses are part of the Physical Damage coverage. Some auto policies still provide this
coverage only if the vehicle has been stolen.
, Basic benefits available under a typical workers compensation policy include which of the following?
Other structures are excluded from coverage under the HO-3 when they are:
Smaller than 100 square feet or larger than 1,000 square feet
Smaller than 100 square feet or larger than 500 square feet
Used for storage purposes
Used for business purposes - Answers>>>Used for business purposes is correct.
EXPLANATION:
When the other structures are used for business purposes they are not covered under the homeowner
form. This structure and its contents could be covered under a commercial property policy. An exception
would be a detached structure used to store business property of a non-flammable, non-gaseous nature.
An insurance company must give how many days notice of cancellation for a vacancy of more than 60
days, when the government has ordered demolition, or when fixed items are being removed and not
replaced?
5
21
10
30 - Answers>>>5 is correct.
EXPLANATION:
The cancellation changes endorsement is the "mandatory endorsement" referred to in the question. In
California, the endorsement must be included in every commercial property policy. It allows cancellation
by the insurer with 5 days' notice for several reasons: vacancy or unoccupancy for 60 or more days;
damages from a prior covered loss haven't been started; the government has ordered demolition or to
vacate; fixed items are being removed and not replaced; and, utilities are shut off for 30 or more days, or
property taxes are more than one year past due.
