California Adjuster PSI Exam 2023 | Questions, Answers, and Explanations | Verified Answers
Which of the following is not a duty of an insurer in case of
... [Show More] 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. [Show Less]