California Adjuster PSI Exam Questions and Answers (100% Correct Answers) 2024 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. 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? 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: