CA Adjusters License PSI Exam Questions
and Answers (Solved Papers)
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 - Correct 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 - Correct Answers ✅5 is correct.
,CA Adjusters License PSI Exam Questions
and Answers (Solved Papers)
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.
Upon request made by the consumer, a person who procures
an investigative consumer report on the consumer must
make a complete and accurate disclosure to the consumer of
the nature of the report and investigation within:
In writing and mailed to the consumer within 30 days of the
request.
In writing and mailed to the consumer within 15 days of the
request.
In writing and mailed to the consumer within 10 days of the
request.
In writing and mailed to the consumer within 5 days of the
request. - Correct Answers ✅In writing and mailed to the
consumer within 5 days of the request..
EXPLANATION:
,CA Adjusters License PSI Exam Questions
and Answers (Solved Papers)
This disclosure must be made in writing and mailed or
otherwise delivered to the consumer no later than five days
after the date on which the request for the disclosure was
received from the consumer.
The insured has primary bodily injury and property damage
liability coverage with a $100,000 limit, and a $1 million
umbrella liability policy with a $5,000 self-insured retention
limit. In which one of the following situations would the
insured's umbrella liability policy typically not provide
defense coverage?
Answer Choices: Select the Correct Answer
Five people sued the insured for property damage arising out
of one occurrence. One of the cases was settled out of court
for $100,000.
The insured was sued for $150,000 in personal injury
damages.
The insured was sued for $10,000 in bodily injury damages.
The umbrella liability policy would provide a defense in all
three cases. - Correct Answers ✅The correct answer is:
The insured was sued for $10,000 in bodily injury damages.
EXPLANATION:
The claim would fall under the underlying coverage and not
the umbrella because the underlying coverage has sufficient
limits in place.
, CA Adjusters License PSI Exam Questions
and Answers (Solved Papers)
Question 5 of 100
The BAP liability exclusion pertaining to pollution removes
coverage for each of the following, except:
Answer Choices: Select the Correct Answer
The cost of governmentally ordered clean-up of pollutants.
The escape of pollutants while being transported by a
covered auto.
The escape of pollutants caused by damage to the property
containing them when the damage results from the use of a
covered auto.
The escape of pollutants before they are accepted by the
insured for movement onto a covered auto. - Correct
Answers ✅The escape of pollutants caused by damage to
the property containing them when the damage results from
the use of a covered auto. is correct.
EXPLANATION:
If the insured's vehicle causes an accident with another
vehicle or other property (owned by a third party) containing
the pollutants, the loss is covered.
Which of the following would not be covered under the
specified cause of loss physical damage coverage under the
commercial auto form?
Glass breakage
and Answers (Solved Papers)
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 - Correct 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 - Correct Answers ✅5 is correct.
,CA Adjusters License PSI Exam Questions
and Answers (Solved Papers)
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.
Upon request made by the consumer, a person who procures
an investigative consumer report on the consumer must
make a complete and accurate disclosure to the consumer of
the nature of the report and investigation within:
In writing and mailed to the consumer within 30 days of the
request.
In writing and mailed to the consumer within 15 days of the
request.
In writing and mailed to the consumer within 10 days of the
request.
In writing and mailed to the consumer within 5 days of the
request. - Correct Answers ✅In writing and mailed to the
consumer within 5 days of the request..
EXPLANATION:
,CA Adjusters License PSI Exam Questions
and Answers (Solved Papers)
This disclosure must be made in writing and mailed or
otherwise delivered to the consumer no later than five days
after the date on which the request for the disclosure was
received from the consumer.
The insured has primary bodily injury and property damage
liability coverage with a $100,000 limit, and a $1 million
umbrella liability policy with a $5,000 self-insured retention
limit. In which one of the following situations would the
insured's umbrella liability policy typically not provide
defense coverage?
Answer Choices: Select the Correct Answer
Five people sued the insured for property damage arising out
of one occurrence. One of the cases was settled out of court
for $100,000.
The insured was sued for $150,000 in personal injury
damages.
The insured was sued for $10,000 in bodily injury damages.
The umbrella liability policy would provide a defense in all
three cases. - Correct Answers ✅The correct answer is:
The insured was sued for $10,000 in bodily injury damages.
EXPLANATION:
The claim would fall under the underlying coverage and not
the umbrella because the underlying coverage has sufficient
limits in place.
, CA Adjusters License PSI Exam Questions
and Answers (Solved Papers)
Question 5 of 100
The BAP liability exclusion pertaining to pollution removes
coverage for each of the following, except:
Answer Choices: Select the Correct Answer
The cost of governmentally ordered clean-up of pollutants.
The escape of pollutants while being transported by a
covered auto.
The escape of pollutants caused by damage to the property
containing them when the damage results from the use of a
covered auto.
The escape of pollutants before they are accepted by the
insured for movement onto a covered auto. - Correct
Answers ✅The escape of pollutants caused by damage to
the property containing them when the damage results from
the use of a covered auto. is correct.
EXPLANATION:
If the insured's vehicle causes an accident with another
vehicle or other property (owned by a third party) containing
the pollutants, the loss is covered.
Which of the following would not be covered under the
specified cause of loss physical damage coverage under the
commercial auto form?
Glass breakage
