CA ADJUSTERS LICENSE PSI QUESTIONS WITH CORRECT ANSWERS 2025

CA ADJUSTERS LICENSE PSI QUESTIONS
WITH CORRECT ANSWERS 2025
OtherQstructuresQareQexcludedQfromQcoverageQunderQtheQHO-3QwhenQtheyQare:



SmallerQthanQ100QsquareQfeetQorQlargerQthanQ1,000QsquareQfeetQ

SmallerQthanQ100QsquareQfeetQorQlargerQthanQ500QsquareQfeetQ

UsedQforQstorageQpurposesQ

UsedQforQbusinessQpurposesQ-QCORRECTQANSWERQ-UsedQforQbusinessQpurposesQisQcorrect.

EXPLANATION:

WhenQtheQotherQstructuresQareQusedQforQbusinessQpurposesQtheyQareQnotQcoveredQunderQtheQho
meownerQform.QThisQstructureQandQitsQcontentsQcouldQbeQcoveredQunderQaQcommercialQproperty
Qpolicy.QAnQexceptionQwouldQbeQaQdetachedQstructureQusedQtoQstoreQbusinessQpropertyQofQaQnon-


flammable,Qnon-gaseousQnature.



AnQinsuranceQcompanyQmustQgiveQhowQmanyQdaysQnoticeQofQcancellationQforQaQvacancyQofQmoreQ
thanQ60Qdays,QwhenQtheQgovernmentQhasQorderedQdemolition,QorQwhenQfixedQitemsQareQbeingQre
movedQandQnotQreplaced?



5Q

21Q

10Q

30Q-QCORRECTQANSWERQ-5QisQcorrect.

EXPLANATION:

TheQcancellationQchangesQendorsementQisQtheQ"mandatoryQendorsement"QreferredQtoQinQtheQqu
estion.QInQCalifornia,QtheQendorsementQmustQbeQincludedQinQeveryQcommercialQpropertyQpolicy.QI
tQallowsQcancellationQbyQtheQinsurerQwithQ5Qdays'QnoticeQforQseveralQreasons:QvacancyQorQunoccu
pancyQforQ60QorQmoreQdays;QdamagesQfromQaQpriorQcoveredQlossQhaven'tQbeenQstarted;QtheQgover
nmentQhasQorderedQdemolitionQorQtoQvacate;QfixedQitemsQareQbeingQremovedQandQnotQreplaced;Q

,and,QutilitiesQareQshutQoffQforQ30QorQmoreQdays,QorQpropertyQtaxesQareQmoreQthanQoneQyearQpastQd
ue.



UponQrequestQmadeQbyQtheQconsumer,QaQpersonQwhoQprocuresQanQinvestigativeQconsumerQrepor
tQonQtheQconsumerQmustQmakeQaQcompleteQandQaccurateQdisclosureQtoQtheQconsumerQofQtheQnat
ureQofQtheQreportQandQinvestigationQwithin:



InQwritingQandQmailedQtoQtheQconsumerQwithinQ30QdaysQofQtheQrequest.Q

InQwritingQandQmailedQtoQtheQconsumerQwithinQ15QdaysQofQtheQrequest.Q

InQwritingQandQmailedQtoQtheQconsumerQwithinQ10QdaysQofQtheQrequest.Q

InQwritingQandQmailedQtoQtheQconsumerQwithinQ5QdaysQofQtheQrequest.Q-QCORRECTQANSWERQ-
InQwritingQandQmailedQtoQtheQconsumerQwithinQ5QdaysQofQtheQrequest..

EXPLANATION:

ThisQdisclosureQmustQbeQmadeQinQwritingQandQmailedQorQotherwiseQdeliveredQtoQtheQconsumerQn
oQlaterQthanQfiveQdaysQafterQtheQdateQonQwhichQtheQrequestQforQtheQdisclosureQwasQreceivedQfrom
QtheQconsumer.




TheQinsuredQhasQprimaryQbodilyQinjuryQandQpropertyQdamageQliabilityQcoverageQwithQaQ$100,000Q
limit,QandQaQ$1QmillionQumbrellaQliabilityQpolicyQwithQaQ$5,000Qself-
insuredQretentionQlimit.QInQwhichQoneQofQtheQfollowingQsituationsQwouldQtheQinsured'sQumbrellaQl
iabilityQpolicyQtypicallyQnotQprovideQdefenseQcoverage?

AnswerQChoices:QSelectQtheQCorrectQAnswer

FiveQpeopleQsuedQtheQinsuredQforQpropertyQdamageQarisingQoutQofQoneQoccurrence.QOneQofQtheQc
asesQwasQsettledQoutQofQcourtQforQ$100,000.Q

TheQinsuredQwasQsuedQforQ$150,000QinQpersonalQinjuryQdamages.Q

TheQinsuredQwasQsuedQforQ$10,000QinQbodilyQinjuryQdamages.Q

TheQumbrellaQliabilityQpolicyQwouldQprovideQaQdefenseQinQallQthreeQcases.Q-QCORRECTQANSWERQ-
TheQcorrectQanswerQis:QTheQinsuredQwasQsuedQforQ$10,000QinQbodilyQinjuryQdamages.Q

,EXPLANATION:

TheQclaimQwouldQfallQunderQtheQunderlyingQcoverageQandQnotQtheQumbrellaQbecauseQtheQunderly
ingQcoverageQhasQsufficientQlimitsQinQplace.



QuestionQ5QofQ100



TheQBAPQliabilityQexclusionQpertainingQtoQpollutionQremovesQcoverageQforQeachQofQtheQfollowing,Q
except:

AnswerQChoices:QSelectQtheQCorrectQAnswer

TheQcostQofQgovernmentallyQorderedQclean-upQofQpollutants.Q

TheQescapeQofQpollutantsQwhileQbeingQtransportedQbyQaQcoveredQauto.Q

TheQescapeQofQpollutantsQcausedQbyQdamageQtoQtheQpropertyQcontainingQthemQwhenQtheQdamag
eQresultsQfromQtheQuseQofQaQcoveredQauto.Q

TheQescapeQofQpollutantsQbeforeQtheyQareQacceptedQbyQtheQinsuredQforQmovementQontoQaQcovere
dQauto.Q-QCORRECTQANSWERQ-
TheQescapeQofQpollutantsQcausedQbyQdamageQtoQtheQpropertyQcontainingQthemQwhenQtheQdamag
eQresultsQfromQtheQuseQofQaQcoveredQauto.QisQcorrect.

EXPLANATION:

IfQtheQinsured'sQvehicleQcausesQanQaccidentQwithQanotherQvehicleQorQotherQpropertyQ(ownedQbyQa
QthirdQparty)QcontainingQtheQpollutants,QtheQlossQisQcovered.




WhichQofQtheQfollowingQwouldQnotQbeQcoveredQunderQtheQspecifiedQcauseQofQlossQphysicalQdamag
eQcoverageQunderQtheQcommercialQautoQform?



GlassQbreakageQ

FireQ

LightningQ

FloodQ-QCORRECTQANSWERQ-TheQcorrectQanswerQis:QGlassQbreakage.

, EXPLANATION:

TheQspecifiedQcauseQofQlossQformQcoversQtheQfollowingQperils:Qfire,Qlighting,Qexplosion,Qtheft,Qwin
dstorm,Qhail,Qearthquake,Qflood,QvandalismQorQmischief,QtransportationQbyQaQconveyance.QTheQco
verageQdoesQnotQincludeQglassQbreakage,QhittingQaQbirdQorQanimalQnorQfallingQobjectsQorQmissiles.



AllQofQtheQfollowingQeventsQareQconsideredQactsQofQterrorism,QEXCEPT:



ActsQofQriotQandQcivilQcommotion.Q

ActsQconsideredQdangerousQtoQhumanQlife,QpropertyQorQinfrastructure.Q

ActsQresultingQinQdamageQwithinQorQoutsideQtheQUnitedQStates.Q

ActsQatQtheQpremisesQofQanyQUnitedQStatesQmission.Q-QCORRECTQANSWERQ-
TheQcorrectQanswerQis:QActsQofQriotQandQcivilQcommotion.Q.

EXPLANATION:

ActsQofQriotQandQcivilQcommotionQareQnotQcoveredQbyQtheQAct.QTheseQareQperilsQthatQareQcoveredQ
byQpropertyQinsuranceQpolicies.



AQcompanyQorQstaffQadjusterQrepresentsQtheQinterestsQof:



TheQinsurer.Q

TheQinsured.Q

TheQclaimant.Q

TheQpublic.Q-QCORRECTQANSWERQ-TheQinsurer.QisQcorrect.

EXPLANATION:

CompanyQorQstaffQadjustersQareQindividualsQemployedQbyQaQpropertyQandQcasualtyQinsuranceQcom
panyQtoQsettleQonQitsQbehalfQclaimsQbroughtQbyQinsureds.QTheyQworkQdirectlyQforQtheQinsuranceQco
mpanyQasQyear-
roundQsalariedQemployees.QStaffQadjustersQevaluateQtheQmeritsQofQeachQclaimQandQmakeQrecomm
endationsQtoQtheQinsuranceQcompany.