CALIFORNIA ADJUSTER PSI EXAM- REAL ACTUAL EXAM | LATEST
UPDATE 2025-WELL EXPLAINED QUESTIONS WITH
CORRECT ANSWERS | RATED 100% CORRECT!! ALREADY
GRADED A+
An economic device used to protect against the risk of realizing unforeseen and
extraordinary financial loss is called - (answers)Insurance
Premium, payments - (answers)In an insurance contract rhe policyholder gives the
insurer— and the insurer gives the policyholder —-
Insurance - (answers)The transfer if risk from one party to another
An insured from making a profit - (answers)The principle of indemnity is designed. To
prevent
An individual or organization that pays premiums in exchange for financial protection -
(answers)Which if the following best defines insured
Agreement consideration competent parties legal purpose - (answers)What are the four
requirements of a legally binding contract
The principle of indemnity - (answers)Melinda s home sustained $6500 in damages
when Jared ran into it with his truck Melinda received $6500 from her insurance
company and Jared also paid her. $5000 Melinda has now profited from this loss and is
in violation of
Premiums from the insured and the promise to pay from the insurer - (answers)In an
insurance contract consideration from both parties is compromised of
The principle of indemnity - (answers)Sandra rear ended Randy's car when he stopped
quickly for a yellow light that she was sure they were going to make. the damage was
minor but Sandra was worried her premiums would increase if the accident was
reported so she gave Tandy $500 in an effort to keep it just between them. However.
Randy filed the claim with his insurance company and received a settlement. Check for
$750. What was Randy violated?
The insurer will only pay up to the amount already collected in premiums for each
insured - (answers)Who bid the following statements about insurance is false?
If the policy limit is greater than the value of the insured item the claimant may profit
from a total loss - (answers)Which of the following statements about insurance is false?
,Offeree must have no more than one stipulation - (answers)Which if the following isNOT
one of the criteria that makes acceptance if an offer to a contract legally enforceable?
Insuring Agreement - (answers)We will provide the insurance described in this policy in
return for the premiums and compliance with all applicable provisions if this policy. In
which section if the insurance policy would his statement be found?
Nuclear Hazard - (answers)Which of these causes of loss is least likely to be covered
by a typical insurance policy?
Conditions - (answers)Edna loses some of her property ina hailstorm. when the adjuster
comes to investigate the loss he gives an estimate that Edna thinks is far too low. as
negotiations continue neither Edna nor the adjuster will budge. Where in Edna's policy
would you find the procedure. To follow in this situation?
Stephen's insurance company denied his recent claim citing that his particular cause of
loss was not covered. However according to Stephen 's interpretation Of the policy
language his loss could be covered so he disputes the decision
When his case went to trial the jury also decided the policy was open to interpretation
so the decided in favor of Stephen this is because - (answers)
They depend on an unknown future event - (answers)Insurance policies are aleatory
contracts. This means
Alien insurer - (answers)An insurer that obeys the laws of a country other than the US is
called
Stock company - (answers)What type of insurer sells shares to the public and is owned
by its shareholders?
captive insurer - (answers)Any town pediatric has been having a a hard time finding
medial practice insurance. The premiums are extremely high. And they get higher every
year. Finally fed up with the costs of insurance the directors decide to form their own
insurance company which will only serve Anytown Pediatric
What kind of insurance. Would his be ?
Non-admitted Insurer - (answers)Bob is looking for an insurance policy but he can't find
the right kind of insurance coverage on his home state of Oregon but he may be able to
purchase surplus lines insurance from:
hazard - (answers)Monica home is located in a flood zone . In insurance terms the
location of Monica's home is considered?
peri- - (answers)Nina 's home is located in a high crime area . One day she comes
home from work to find that her garage door has been spray painted with graffiti. Nina's
insurer would consider the act of vandalism a
, During a fire the fire department hoses down a house to extinguish the flames. The
water damages that results is an indirect loss - (answers)Which of the following is NOT
an example an indirect loss?
- (answers)During a heavy thunderstorm the lightning strikes a tree outside Carl,s
house which splinters and falls onto Carl's roof. The room under the roof floods with
water damaging. Carl's expensive flooring Carl's roof damage would be considered ?
Actual economic interest is defined as - (answers)Insurable interest is defined as
His favorite restaurant - (answers)Insurance interest allows rick to take out an insurance
policy in all but the following
Jim has already received indemnity from his insurer - (answers)When Shawn
purposefully caused fire damage to Jim's restaurant Jim's insurer paid the claim and
then sued Shawn for the damages but Jim is still pretty mad about the food hole deal
and wants to sue him as well. Why is it not possible for him to sue Shawn?
Replacement cost minus total depreciation - (answers)How is actual cash value
calculated ?
Deductible - (answers)A predefined monetary portion of an insurance claim paid by a
policyholder is a:
Liability insurance policy limits dictate the maximum amount an insurer is responsible
for paying a covered loss - (answers)Which of the following statements about liability
insurance policy limits is TRUE?
Contributory Negligence - (answers)The use of which doctrine would result in David
receiving no damages for his loss if he were found 25% responsible for his own loss?
Intentional acts - (answers)Which if the following is excluded from liability. Insurance
coverage?
Compensatory Damages - (answers)Sam s neighbor was upset and sued him for
damages Sam is ordered to pay $500 for the tree under which category if damages
would this fall?
Court decisions and customs - (answers)Common law is based on?
Liberalization Clause - (answers)Ned insurer made a business decision that broadened
coverage in new standard policies without increasing premiums. Be cause if this. The
insurer. Was rehired to automatically. Apply this new broadened coverage to Ned's
existing policy . This requirement is documented in the :
UPDATE 2025-WELL EXPLAINED QUESTIONS WITH
CORRECT ANSWERS | RATED 100% CORRECT!! ALREADY
GRADED A+
An economic device used to protect against the risk of realizing unforeseen and
extraordinary financial loss is called - (answers)Insurance
Premium, payments - (answers)In an insurance contract rhe policyholder gives the
insurer— and the insurer gives the policyholder —-
Insurance - (answers)The transfer if risk from one party to another
An insured from making a profit - (answers)The principle of indemnity is designed. To
prevent
An individual or organization that pays premiums in exchange for financial protection -
(answers)Which if the following best defines insured
Agreement consideration competent parties legal purpose - (answers)What are the four
requirements of a legally binding contract
The principle of indemnity - (answers)Melinda s home sustained $6500 in damages
when Jared ran into it with his truck Melinda received $6500 from her insurance
company and Jared also paid her. $5000 Melinda has now profited from this loss and is
in violation of
Premiums from the insured and the promise to pay from the insurer - (answers)In an
insurance contract consideration from both parties is compromised of
The principle of indemnity - (answers)Sandra rear ended Randy's car when he stopped
quickly for a yellow light that she was sure they were going to make. the damage was
minor but Sandra was worried her premiums would increase if the accident was
reported so she gave Tandy $500 in an effort to keep it just between them. However.
Randy filed the claim with his insurance company and received a settlement. Check for
$750. What was Randy violated?
The insurer will only pay up to the amount already collected in premiums for each
insured - (answers)Who bid the following statements about insurance is false?
If the policy limit is greater than the value of the insured item the claimant may profit
from a total loss - (answers)Which of the following statements about insurance is false?
,Offeree must have no more than one stipulation - (answers)Which if the following isNOT
one of the criteria that makes acceptance if an offer to a contract legally enforceable?
Insuring Agreement - (answers)We will provide the insurance described in this policy in
return for the premiums and compliance with all applicable provisions if this policy. In
which section if the insurance policy would his statement be found?
Nuclear Hazard - (answers)Which of these causes of loss is least likely to be covered
by a typical insurance policy?
Conditions - (answers)Edna loses some of her property ina hailstorm. when the adjuster
comes to investigate the loss he gives an estimate that Edna thinks is far too low. as
negotiations continue neither Edna nor the adjuster will budge. Where in Edna's policy
would you find the procedure. To follow in this situation?
Stephen's insurance company denied his recent claim citing that his particular cause of
loss was not covered. However according to Stephen 's interpretation Of the policy
language his loss could be covered so he disputes the decision
When his case went to trial the jury also decided the policy was open to interpretation
so the decided in favor of Stephen this is because - (answers)
They depend on an unknown future event - (answers)Insurance policies are aleatory
contracts. This means
Alien insurer - (answers)An insurer that obeys the laws of a country other than the US is
called
Stock company - (answers)What type of insurer sells shares to the public and is owned
by its shareholders?
captive insurer - (answers)Any town pediatric has been having a a hard time finding
medial practice insurance. The premiums are extremely high. And they get higher every
year. Finally fed up with the costs of insurance the directors decide to form their own
insurance company which will only serve Anytown Pediatric
What kind of insurance. Would his be ?
Non-admitted Insurer - (answers)Bob is looking for an insurance policy but he can't find
the right kind of insurance coverage on his home state of Oregon but he may be able to
purchase surplus lines insurance from:
hazard - (answers)Monica home is located in a flood zone . In insurance terms the
location of Monica's home is considered?
peri- - (answers)Nina 's home is located in a high crime area . One day she comes
home from work to find that her garage door has been spray painted with graffiti. Nina's
insurer would consider the act of vandalism a
, During a fire the fire department hoses down a house to extinguish the flames. The
water damages that results is an indirect loss - (answers)Which of the following is NOT
an example an indirect loss?
- (answers)During a heavy thunderstorm the lightning strikes a tree outside Carl,s
house which splinters and falls onto Carl's roof. The room under the roof floods with
water damaging. Carl's expensive flooring Carl's roof damage would be considered ?
Actual economic interest is defined as - (answers)Insurable interest is defined as
His favorite restaurant - (answers)Insurance interest allows rick to take out an insurance
policy in all but the following
Jim has already received indemnity from his insurer - (answers)When Shawn
purposefully caused fire damage to Jim's restaurant Jim's insurer paid the claim and
then sued Shawn for the damages but Jim is still pretty mad about the food hole deal
and wants to sue him as well. Why is it not possible for him to sue Shawn?
Replacement cost minus total depreciation - (answers)How is actual cash value
calculated ?
Deductible - (answers)A predefined monetary portion of an insurance claim paid by a
policyholder is a:
Liability insurance policy limits dictate the maximum amount an insurer is responsible
for paying a covered loss - (answers)Which of the following statements about liability
insurance policy limits is TRUE?
Contributory Negligence - (answers)The use of which doctrine would result in David
receiving no damages for his loss if he were found 25% responsible for his own loss?
Intentional acts - (answers)Which if the following is excluded from liability. Insurance
coverage?
Compensatory Damages - (answers)Sam s neighbor was upset and sued him for
damages Sam is ordered to pay $500 for the tree under which category if damages
would this fall?
Court decisions and customs - (answers)Common law is based on?
Liberalization Clause - (answers)Ned insurer made a business decision that broadened
coverage in new standard policies without increasing premiums. Be cause if this. The
insurer. Was rehired to automatically. Apply this new broadened coverage to Ned's
existing policy . This requirement is documented in the :
