California Adjuster PSI Exam Questions and Answers (100% CORRECT ANSWERs)
Question : 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.
Question : 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.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.
Question : Which of the following are are essential if a
salvage award is to be made?
- 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.
Question : The endorsement for water that backs up through a
sewer or drain including mechanical breakdown of a sump pump contains which of the following?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.
Question : 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.
Question : 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