CA ADJUSTERS LICENSE PSI EXAM (ACTUAL
2025) 200 QUESTIONS WITH VERIFIED
ANSWERS AND EXPLANATION / ALREADY
GRADED A+
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
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.
In legal terms, the written explanation of how a loss occurred
is called a:
Answer Choices: Select the Correct Answer
,Loss notification.
Deposition.
Statement.
Proof of loss.
Statement. is correct.
EXPLANATION:
This is a statement. A proof of loss lists the damage for which
the insured desires reimbursement.
Under Workers Compensation rules, for an employee to
receive Temporary Disability Compensation for the first three
(3) days of his disability, his disability period must extend:
Answer Choices: Select the Correct Answer
21 days
30 days
45 days
60 days
21 days is correct.
EXPLANATION:
Benefits are retroactive to the day of the injury if the disability
lasts 21 days.
,Under the conditions section of the BOP, which of the
following would not be considered vacant?
Answer Choices: Select the Correct Answer
A 100 unit apartment building of which 70 units are not
rented
An office building containing two empty units and these two
empty suites represent 25% of the total floor space.
A mercantile building with a print shop on the ground floor
but the second and third floors are not being utilized
A new building which has not been rented out at all
An office building containing two empty units and these two
empty suites represent 25% of the total floor space. is correct.
EXPLANATION:
A building is considered vacant when 65% or more of the
total floor space is not being utilized or rented out. The office
building with two empty suites is only 25% vacant.
A ship has negligently collided with another ship and caused
severe damage. What coverage would apply to cover this
claim?
Answer Choices: Select the Correct Answer
Hull insurance with the "running down clause".
Protection and Indemnity.
Inchmaree clause.
, Towage clause.
Hull insurance with the "running down clause". is correct.
EXPLANATION:
Hull insurance with the "running down clause" would respond
to cover this claim.
A license issued by the Commissioner that contains certain
conditions is called:
Answer Choices: Select the Correct Answer
A restricted license.
A temporary license.
A surplus lines license.
A non-restricted license.
A restricted license. is correct.
EXPLANATION:
A restricted license is a license that is issued by the
Commissioner with reasonable restrictions on the license and
license holder.
An insured has $500 cash stolen from her home. How much
can she collect under a standard homeowner policy?
Answer Choices: Select the Correct Answer
2025) 200 QUESTIONS WITH VERIFIED
ANSWERS AND EXPLANATION / ALREADY
GRADED A+
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
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.
In legal terms, the written explanation of how a loss occurred
is called a:
Answer Choices: Select the Correct Answer
,Loss notification.
Deposition.
Statement.
Proof of loss.
Statement. is correct.
EXPLANATION:
This is a statement. A proof of loss lists the damage for which
the insured desires reimbursement.
Under Workers Compensation rules, for an employee to
receive Temporary Disability Compensation for the first three
(3) days of his disability, his disability period must extend:
Answer Choices: Select the Correct Answer
21 days
30 days
45 days
60 days
21 days is correct.
EXPLANATION:
Benefits are retroactive to the day of the injury if the disability
lasts 21 days.
,Under the conditions section of the BOP, which of the
following would not be considered vacant?
Answer Choices: Select the Correct Answer
A 100 unit apartment building of which 70 units are not
rented
An office building containing two empty units and these two
empty suites represent 25% of the total floor space.
A mercantile building with a print shop on the ground floor
but the second and third floors are not being utilized
A new building which has not been rented out at all
An office building containing two empty units and these two
empty suites represent 25% of the total floor space. is correct.
EXPLANATION:
A building is considered vacant when 65% or more of the
total floor space is not being utilized or rented out. The office
building with two empty suites is only 25% vacant.
A ship has negligently collided with another ship and caused
severe damage. What coverage would apply to cover this
claim?
Answer Choices: Select the Correct Answer
Hull insurance with the "running down clause".
Protection and Indemnity.
Inchmaree clause.
, Towage clause.
Hull insurance with the "running down clause". is correct.
EXPLANATION:
Hull insurance with the "running down clause" would respond
to cover this claim.
A license issued by the Commissioner that contains certain
conditions is called:
Answer Choices: Select the Correct Answer
A restricted license.
A temporary license.
A surplus lines license.
A non-restricted license.
A restricted license. is correct.
EXPLANATION:
A restricted license is a license that is issued by the
Commissioner with reasonable restrictions on the license and
license holder.
An insured has $500 cash stolen from her home. How much
can she collect under a standard homeowner policy?
Answer Choices: Select the Correct Answer
