1
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CA Adjusters License PSI Questions and
Answers (100% Correct Answers) Already
Graded A+
Other structures are excluded from coverage under the HO-3
when they are:
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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
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Used for business purposes [ Ans: ] 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 [ Ans: ] 5 is correct.
EXPLANATION:
, 2
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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
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of the report and investigation within:
In writing and mailed to the consumer within 30 days of the
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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.
[ Ans: ] In writing and mailed to the consumer within 5 days of the
request..
EXPLANATION:
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?
, 3
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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. [ Ans: ] The correct answer is: The insured was sued for
$10,000 in bodily injury damages.
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EXPLANATION:
The claim would fall under the underlying coverage and not the
umbrella because the underlying coverage has sufficient limits in
place.
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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. [ Ans: ] 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:
, 4
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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
Fire
Lightning
© 2025 Assignment Expert
Flood [ Ans: ] The correct answer is: Glass breakage.
EXPLANATION:
The specified cause of loss form covers the following perils: fire,
lighting, explosion, theft, windstorm, hail, earthquake, flood,
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vandalism or mischief, transportation by a conveyance. The
coverage does not include glass breakage, hitting a bird or
animal nor falling objects or missiles.
All of the following events are considered acts of terrorism,
EXCEPT:
Acts of riot and civil commotion.
Acts considered dangerous to human life, property or
infrastructure.
Acts resulting in damage within or outside the United States.
Acts at the premises of any United States mission. [ Ans: ] The
correct answer is: Acts of riot and civil commotion. .
EXPLANATION:
Acts of riot and civil commotion are not covered by the Act.
These are perils that are covered by property insurance policies.
A company or staff adjuster represents the interests of:
For Expert help and assignment solutions, +254707240657
CA Adjusters License PSI Questions and
Answers (100% Correct Answers) Already
Graded A+
Other structures are excluded from coverage under the HO-3
when they are:
© 2025 Assignment Expert
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
Guru01 - Stuvia
Used for business purposes [ Ans: ] 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 [ Ans: ] 5 is correct.
EXPLANATION:
, 2
For Expert help and assignment solutions, +254707240657
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
© 2025 Assignment Expert
of the report and investigation within:
In writing and mailed to the consumer within 30 days of the
Guru01 - Stuvia
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.
[ Ans: ] In writing and mailed to the consumer within 5 days of the
request..
EXPLANATION:
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?
, 3
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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. [ Ans: ] The correct answer is: The insured was sued for
$10,000 in bodily injury damages.
© 2025 Assignment Expert
EXPLANATION:
The claim would fall under the underlying coverage and not the
umbrella because the underlying coverage has sufficient limits in
place.
Guru01 - Stuvia
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. [ Ans: ] 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:
, 4
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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
Fire
Lightning
© 2025 Assignment Expert
Flood [ Ans: ] The correct answer is: Glass breakage.
EXPLANATION:
The specified cause of loss form covers the following perils: fire,
lighting, explosion, theft, windstorm, hail, earthquake, flood,
Guru01 - Stuvia
vandalism or mischief, transportation by a conveyance. The
coverage does not include glass breakage, hitting a bird or
animal nor falling objects or missiles.
All of the following events are considered acts of terrorism,
EXCEPT:
Acts of riot and civil commotion.
Acts considered dangerous to human life, property or
infrastructure.
Acts resulting in damage within or outside the United States.
Acts at the premises of any United States mission. [ Ans: ] The
correct answer is: Acts of riot and civil commotion. .
EXPLANATION:
Acts of riot and civil commotion are not covered by the Act.
These are perils that are covered by property insurance policies.
A company or staff adjuster represents the interests of:
