CALIFORNIA ADJUSTER PSI EXAM QUESTIONS
AND ANSWERS 2025
DutyQofQanQinsurerQinQcaseQofQaQlossQ-QCORRECTQANSWERQ-
TheQinsurerQisQrequiredQtoQconductQaQthoroughQinvestigation,QestablishQclaimQproceduresQandQm
ethodsQofQdocumentation,QandQacknowledgeQreceiptQofQaQclaimQinQaQtimelyQfashion.
ResponsibilityQofQanQinsuredQinQcaseQofQaQlossQ-QCORRECTQANSWERQ-
TheQinsuredQmustQseparateQtheQdamagedQpropertyQfromQtheQundamagedQpropertyQandQprotectQt
heQpropertyQfromQfurtherQloss.
DefinitionQofQ'additionalQcoverages'QinQinsuranceQpoliciesQ-QCORRECTQANSWERQ-
AdditionalQcoveragesQareQincludedQinQinsuranceQpoliciesQatQnoQextraQcost.QExamplesQofQadditional
QcoveragesQincludeQdebrisQremovalQandQreasonableQrepairs.
EssentialQconditionsQforQaQsalvageQawardQ-QCORRECTQANSWERQ-
ToQbeQeligibleQforQaQsalvageQaward,QtheQpropertyQinvolvedQmustQbeQinQperilQfromQsomeQhazard,Qth
eQsalvageQserviceQmustQbeQvoluntary,QandQtheQsalvageQeffortQmustQbeQsuccessful.
ContentsQofQanQendorsementQforQwaterQbackupQthroughQaQsewerQorQdrainQ-QCORRECTQANSWERQ-
AnQendorsementQforQwaterQbackupQthroughQaQsewerQorQdrainQincludesQaQseparateQstatedQlimitQof
QcoverageQandQaQseparateQstatedQdeductibleQforQcoveredQlosses.
DutiesQofQanQinsuredQwhenQfilingQaQclaimQ-QCORRECTQANSWERQ-
WhenQfilingQaQclaim,QtheQinsuredQisQresponsibleQforQprovidingQaQproofQofQlossQstatement,Qpreservi
ngQtheQundamagedQproperty,QandQfullyQcooperatingQinQprovidingQrelevantQbooksQandQrecords.
ExampleQofQanQactQthatQcouldQleadQtoQinjuryQ-QCORRECTQANSWERQ-
AnQexampleQofQanQactQthatQcouldQleadQtoQinjuryQisQtheQimproperQprotectionQofQaQjobQsiteQbyQaQcon
tractor.
, CoverageQlimitQforQaQsingle-familyQresidenceQunderQtheQregularQfloodQprogramQ-
QCORRECTQANSWERQ-TheQcoverageQlimitQforQaQsingle-
familyQresidenceQunderQtheQregularQfloodQprogramQisQ$250,000.
EligibilityQforQaQBusinessownersQPolicyQ-QCORRECTQANSWERQ-
AQfuneralQhomeQisQeligibleQforQaQBusinessownersQPolicy.
ApplicationQofQself-insuredQretentionQinQanQumbrellaQpolicyQ-QCORRECTQANSWERQ-Self-
insuredQretentionQisQappliedQinQanQumbrellaQpolicyQwhenQtheQumbrellaQpolicyQcoversQaQliabilityQcl
aimQthatQisQexcludedQbyQprimaryQpolicies.
DurationQofQdisabilityQperiodQforQanQinjuredQemployeeQtoQreceiveQtemporaryQdisabilityQcompensa
tionQ-QCORRECTQANSWERQ-
AnQinjuredQemployeeQmustQbeQdisabledQforQaQperiodQbeyondQ14QdaysQtoQreceiveQtemporaryQdisa
bilityQcompensation.
PurposeQofQanQattorneyQprovidingQnoticeQofQdepositionQ-QCORRECTQANSWERQ-
TheQpurposeQofQanQattorneyQprovidingQnoticeQofQdepositionQisQtoQsecureQaQrecordedQstatementQu
nderQoath.
DefinitionQofQpreauthorization/precertificationQ-QCORRECTQANSWERQ-
Preauthorization/precertificationQisQtheQdeterminationQbyQaQhealthQbenefitQplanQthatQproposedQ
healthQcareQservicesQareQmedicallyQnecessary.
SubrogationQbyQanQinsuranceQcompanyQ-QCORRECTQANSWERQ-
AnQinsuranceQcompanyQcanQsubrogateQforQtheQactualQamountQpaid,QplusQtheQinsured'sQdeductible
.
RequirementQunderQaQCommercialQPropertyQPolicyQtoQbeQcoveredQforQtheQperilQofQfreezingQ-
QCORRECTQANSWERQ-
AND ANSWERS 2025
DutyQofQanQinsurerQinQcaseQofQaQlossQ-QCORRECTQANSWERQ-
TheQinsurerQisQrequiredQtoQconductQaQthoroughQinvestigation,QestablishQclaimQproceduresQandQm
ethodsQofQdocumentation,QandQacknowledgeQreceiptQofQaQclaimQinQaQtimelyQfashion.
ResponsibilityQofQanQinsuredQinQcaseQofQaQlossQ-QCORRECTQANSWERQ-
TheQinsuredQmustQseparateQtheQdamagedQpropertyQfromQtheQundamagedQpropertyQandQprotectQt
heQpropertyQfromQfurtherQloss.
DefinitionQofQ'additionalQcoverages'QinQinsuranceQpoliciesQ-QCORRECTQANSWERQ-
AdditionalQcoveragesQareQincludedQinQinsuranceQpoliciesQatQnoQextraQcost.QExamplesQofQadditional
QcoveragesQincludeQdebrisQremovalQandQreasonableQrepairs.
EssentialQconditionsQforQaQsalvageQawardQ-QCORRECTQANSWERQ-
ToQbeQeligibleQforQaQsalvageQaward,QtheQpropertyQinvolvedQmustQbeQinQperilQfromQsomeQhazard,Qth
eQsalvageQserviceQmustQbeQvoluntary,QandQtheQsalvageQeffortQmustQbeQsuccessful.
ContentsQofQanQendorsementQforQwaterQbackupQthroughQaQsewerQorQdrainQ-QCORRECTQANSWERQ-
AnQendorsementQforQwaterQbackupQthroughQaQsewerQorQdrainQincludesQaQseparateQstatedQlimitQof
QcoverageQandQaQseparateQstatedQdeductibleQforQcoveredQlosses.
DutiesQofQanQinsuredQwhenQfilingQaQclaimQ-QCORRECTQANSWERQ-
WhenQfilingQaQclaim,QtheQinsuredQisQresponsibleQforQprovidingQaQproofQofQlossQstatement,Qpreservi
ngQtheQundamagedQproperty,QandQfullyQcooperatingQinQprovidingQrelevantQbooksQandQrecords.
ExampleQofQanQactQthatQcouldQleadQtoQinjuryQ-QCORRECTQANSWERQ-
AnQexampleQofQanQactQthatQcouldQleadQtoQinjuryQisQtheQimproperQprotectionQofQaQjobQsiteQbyQaQcon
tractor.
, CoverageQlimitQforQaQsingle-familyQresidenceQunderQtheQregularQfloodQprogramQ-
QCORRECTQANSWERQ-TheQcoverageQlimitQforQaQsingle-
familyQresidenceQunderQtheQregularQfloodQprogramQisQ$250,000.
EligibilityQforQaQBusinessownersQPolicyQ-QCORRECTQANSWERQ-
AQfuneralQhomeQisQeligibleQforQaQBusinessownersQPolicy.
ApplicationQofQself-insuredQretentionQinQanQumbrellaQpolicyQ-QCORRECTQANSWERQ-Self-
insuredQretentionQisQappliedQinQanQumbrellaQpolicyQwhenQtheQumbrellaQpolicyQcoversQaQliabilityQcl
aimQthatQisQexcludedQbyQprimaryQpolicies.
DurationQofQdisabilityQperiodQforQanQinjuredQemployeeQtoQreceiveQtemporaryQdisabilityQcompensa
tionQ-QCORRECTQANSWERQ-
AnQinjuredQemployeeQmustQbeQdisabledQforQaQperiodQbeyondQ14QdaysQtoQreceiveQtemporaryQdisa
bilityQcompensation.
PurposeQofQanQattorneyQprovidingQnoticeQofQdepositionQ-QCORRECTQANSWERQ-
TheQpurposeQofQanQattorneyQprovidingQnoticeQofQdepositionQisQtoQsecureQaQrecordedQstatementQu
nderQoath.
DefinitionQofQpreauthorization/precertificationQ-QCORRECTQANSWERQ-
Preauthorization/precertificationQisQtheQdeterminationQbyQaQhealthQbenefitQplanQthatQproposedQ
healthQcareQservicesQareQmedicallyQnecessary.
SubrogationQbyQanQinsuranceQcompanyQ-QCORRECTQANSWERQ-
AnQinsuranceQcompanyQcanQsubrogateQforQtheQactualQamountQpaid,QplusQtheQinsured'sQdeductible
.
RequirementQunderQaQCommercialQPropertyQPolicyQtoQbeQcoveredQforQtheQperilQofQfreezingQ-
QCORRECTQANSWERQ-