California Adjuster PSI Exam Questions and Answers

(100% Correct Answers) 2023-2024

An economic device used to protect against the risk of realizing unforeseen

and extraordinary financial loss is called - ANSWER>>>Insurance

Premium, payments - ANSWER>>>In an insurance contract rhe

policyholder gives the insurer— and the insurer gives the policyholder —-

Insurance - ANSWER>>>The transfer if risk from one party to another

An insured from making a profit - ANSWER>>>The principle of indemnity is

designed. To prevent

An individual or organization that pays premiums in exchange for financial

protection - ANSWER>>>Which if the following best defines insured

Agreement consideration competent parties legal purpose -

ANSWER>>>What are the four requirements of a legally binding contract

The principle of indemnity - ANSWER>>>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 -

ANSWER>>>In an insurance contract consideration from both parties is

compromised of

The principle of indemnity - ANSWER>>>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 - ANSWER>>>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 - ANSWER>>>Which of the following

statements about insurance is false?

Offeree must have no more than one stipulation - ANSWER>>>Which if the

following isNOT one of the criteria that makes acceptance if an offer to a

contract legally enforceable?

Insuring Agreement - ANSWER>>>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 - ANSWER>>>Which of these causes of loss is least likely

to be covered by a typical insurance policy?

Conditions - ANSWER>>>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 -

ANSWER>>>

They depend on an unknown future event - ANSWER>>>Insurance

policies are aleatory contracts. This means

Alien insurer - ANSWER>>>An insurer that obeys the laws of a country

other than the US is called

Stock company - ANSWER>>>What type of insurer sells shares to the

public and is owned by its shareholders?

captive insurer - ANSWER>>>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 - ANSWER>>>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 - ANSWER>>>Monica home is located in a flood zone . In

insurance terms the location of Monica's home is considered?

peri- - ANSWER>>>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 -

ANSWER>>>Which of the following is NOT an example an indirect loss?

- ANSWER>>>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 - ANSWER>>>Insurable interest is

defined as

His favorite restaurant - ANSWER>>>Insurance interest allows rick to take

out an insurance policy in all but the following

Jim has already received indemnity from his insurer - ANSWER>>>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