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CALIFORNIA ADJUSTER PSI EXAM 2025
QUESTIONS AND ANSWERS.
Which of the following is not a duty of an insurer in case of a loss?
Conduct a thorough investigation
Establish claim procedures and methods of documentation
Acknowledge receipt of a claim in a timely fashion
Separate the damaged property from the undamaged property and protect
the property from further loss - correct answer - The correct answer is:
Separate the damaged property from the undamaged property and protect
the property from further loss.
EXPLANATION:
The insurance company is not required to separate the damaged property
from the undamaged property nor to protect the property from further loss.
This is the responsibility of the insured.
Which of the following statements is true about "additional coverages" in
most insurance policies?
They are included at no extra cost.
They are automatically included only when the loss is less than a
deductible.
They are included for a minimum premium.
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They are optional on the part of the insured. - correct answer - The correct
answer is: They are included at no extra cost.
EXPLANATION:
Examples of "additional coverages" would be debris removal and
reasonable repairs which are automatically included in most property
forms.
Which of the following are are essential if a salvage award is to be made?
I. The property involved must be in peril from some hazard.
II. The salvage service must be voluntary.
III. The effort must be successful.
I and III only
I and II only
I, II and III
II and III only - correct answer - The correct answer is: I, II and III
EXPLANATION:
All of these are essential if a salvage award is to be made.
The endorsement for water that backs up through a sewer or drain
including mechanical breakdown of a sump pump contains which of the
following?
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A separate stated limit of coverage
A separate stated deductible for covered losses
Both answers are correct
Neither answer is correct - correct answer - The correct answer is: Both
answers are correct.
EXPLANATION:
The endorsement will set a limit of coverage per occurrence for these
losses and also impose a stated deductible, which could be less than or
greater than the standard deductible for property losses stated on the
declarations page. Both the coverage limit and the deductible vary based
on each insurer's underwriting guidelines.
All of the following are duties of an insured when filing a claim, EXCEPT:
Providing an adjuster to investigate the claim.
Providing a proof of loss statement.
Preserving the undamaged property to the best of his/her ability to avoid
additional loss.
Full cooperation in providing the insurance company with all relevant books
and records. - correct answer - The correct answer is: Providing an adjuster
to investigate the claim.
EXPLANATION:
It is the duty of the insurer to investigate the claim. The insured is not
obligated to obtain an adjuster. If there is a dispute, the insured has the
option of retaining an attorney or hiring a public adjuster.
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If a contractor does not properly protect a job site, another person could be
injured. This is an example of:
Negligence
A tort
A civil wrong
All of the responses are correct - correct answer - The correct answer is: All
of the responses are correct
EXPLANATION:
All of the responses are correct and is the purpose of the coverage
provided by the CGL policy.
Under the "regular program" a flood insurance policy will insure a single
family residence for up to:
$250,000.
$35,000.
$100,000.
$185,000. - correct answer - The correct answer is: $250,000.
EXPLANATION:
The limit under the regular flood program is $250,000. Under the
emergency flood program the dwelling is covered for only $35,000.
CALIFORNIA ADJUSTER PSI EXAM 2025
QUESTIONS AND ANSWERS.
Which of the following is not a duty of an insurer in case of a loss?
Conduct a thorough investigation
Establish claim procedures and methods of documentation
Acknowledge receipt of a claim in a timely fashion
Separate the damaged property from the undamaged property and protect
the property from further loss - correct answer - The correct answer is:
Separate the damaged property from the undamaged property and protect
the property from further loss.
EXPLANATION:
The insurance company is not required to separate the damaged property
from the undamaged property nor to protect the property from further loss.
This is the responsibility of the insured.
Which of the following statements is true about "additional coverages" in
most insurance policies?
They are included at no extra cost.
They are automatically included only when the loss is less than a
deductible.
They are included for a minimum premium.
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They are optional on the part of the insured. - correct answer - The correct
answer is: They are included at no extra cost.
EXPLANATION:
Examples of "additional coverages" would be debris removal and
reasonable repairs which are automatically included in most property
forms.
Which of the following are are essential if a salvage award is to be made?
I. The property involved must be in peril from some hazard.
II. The salvage service must be voluntary.
III. The effort must be successful.
I and III only
I and II only
I, II and III
II and III only - correct answer - The correct answer is: I, II and III
EXPLANATION:
All of these are essential if a salvage award is to be made.
The endorsement for water that backs up through a sewer or drain
including mechanical breakdown of a sump pump contains which of the
following?
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A separate stated limit of coverage
A separate stated deductible for covered losses
Both answers are correct
Neither answer is correct - correct answer - The correct answer is: Both
answers are correct.
EXPLANATION:
The endorsement will set a limit of coverage per occurrence for these
losses and also impose a stated deductible, which could be less than or
greater than the standard deductible for property losses stated on the
declarations page. Both the coverage limit and the deductible vary based
on each insurer's underwriting guidelines.
All of the following are duties of an insured when filing a claim, EXCEPT:
Providing an adjuster to investigate the claim.
Providing a proof of loss statement.
Preserving the undamaged property to the best of his/her ability to avoid
additional loss.
Full cooperation in providing the insurance company with all relevant books
and records. - correct answer - The correct answer is: Providing an adjuster
to investigate the claim.
EXPLANATION:
It is the duty of the insurer to investigate the claim. The insured is not
obligated to obtain an adjuster. If there is a dispute, the insured has the
option of retaining an attorney or hiring a public adjuster.
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If a contractor does not properly protect a job site, another person could be
injured. This is an example of:
Negligence
A tort
A civil wrong
All of the responses are correct - correct answer - The correct answer is: All
of the responses are correct
EXPLANATION:
All of the responses are correct and is the purpose of the coverage
provided by the CGL policy.
Under the "regular program" a flood insurance policy will insure a single
family residence for up to:
$250,000.
$35,000.
$100,000.
$185,000. - correct answer - The correct answer is: $250,000.
EXPLANATION:
The limit under the regular flood program is $250,000. Under the
emergency flood program the dwelling is covered for only $35,000.
