PSI CA PROPERTY AND CASUALTY PRACTICE

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PSI CA PROPERTY AND CASUALTY PRACTICE

EXAMINATION

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -75 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: 67 Which of the following modification can be made under a standard fire policy?

Answer:

The coverage can substantially be equal to or more favorable to the insured Question 2: 17 At which point is a person licensed as a broker-agent deemed to be acting as an insurance agent?

Answer:

when a notice of appointment is filed with the insurance commissioner Question 3: 55 According to CIC Section 1711, an organization ceases to exist as an entity eligible to hold a license EXCEPT

Answer:

EXCEPT upon the termination of all contracts Question 4: 39 An application for a rate change is regarded as being approved sixty days after public notice under all of the following conditions EXCEPT

Answer:

EXCEPT when the Department's consumer ombudsman finds the rate increase to be unreasonable

Question 5: 22 In the event of receiving notice of a claim or other claim communication, all of the following timelines are accurate EXCEPT

Answer:

EXCEPT every licensee or claim agent shall transmit notice of the claim to the insurer in no more than 5 calendar days Question 6: 15 Except in a case where the property is being held as a carrier or depository, what is the insurable interest is measured by?

Answer:

EXCEPT The extent to which the insured would be damnified by loss or injury to the property Question 7: 59 All of the following are duties of a Managing General Agent EXCEPT

Answer:

EXCEPT delivering policies to the insured Question 8: 27 An "insurance agent" means a person authorized, by and on behalf an insurer, to transact which of the following class of insurance?

Answer:

Annuities Question 9: 7 All of the following are reasons employers liability insurance is needed in addition to workers' compensation insurance EXCEPT

Answer:

EXCEPT to pay medical bills Question 10: 50 Who is legally capable to estimate the replacement value of a structure and discuss homeowners policy coverage levels?

Answer:

An insurer underwriter or actuary

Question 11: 13 "Person" means all of the following EXCEPT

Answer:

EXCEPT an organizational trust

Question 12: 62 Who is authorized to adjust or pay claims in excess of an amount determined by the commissioner?

Answer:

The Managing General Agent Question 13: 56 Which type of protection can a casualty licensee offer in addition to protecting against loss or damage of property?

Answer:

They can provide coverage to protect against legal liability Question 14: 44 Which of the following must be prominently displayed so that it can be readily inspected on the license?

Answer:

currency and capacity

Question 15: 46 How can a licensee surrender any license for cancellation?

Answer:

By submitting written notice or by delivering the license to the commissioner Question 16: 3 All of the following are to be specified in an insurance policy EXCEPT

Answer:

EXCEPT the financial rating of the insured

Question 17: 41 When may a representation be altered or withdrawn?

Answer:

Before the insurance is effected Question 18: 1 Can a lender, as a condition of making a loan, require that any insurance be placed through a particular insurance agent or broker?

Answer:

The loan recipient may always select a particular agent or broker of their choosing Question 19: 5 What is the method used for placing business with the California Automobile Assigned Risk Program?

Answer:

The percentage of CAARP policies required is equal to the percentage of regular insurance policies the insurer has issued within the State

Question 20: 38 All of the following are permissible reasons for a consumer reporting agency to furnish motor vehicle, past claims, or credit reports EXCEPT

Answer:

EXCEPT a request of a national news organization for an investigative story Question 21: 23 All of the following are cause for cancellation of an automobile policy EXCEPT

Answer:

EXCEPT discovery of a criminal record for a felony Question 22: 69What is the coverage limit offered by the California Earthquake Authority for condominiums?

Answer:

The coverage is limited to $25,000 if the value is $135,000 or less, and $50,000 if the value is over

$135,000

Question 23: 45 What 2 different types of areas are served by the California Fair Access to Insurance Responsibilities plan?

Answer:

Brush fire risk and inner city Question 24: 32 Who is eligible to submit applications under the California Fair Access to Insurance Requirements?

Answer:

All insurers authorized to transact basic property insurance in California are able to participate Question 25: 35 Which of the following is a VALID reason to deny coverage or charge a higher rate or premium?

Answer:

driving history or motor vehicle record Question 26: 4 Which of the following provisions of free insurance offered as an incentive to purchase or rent property is TRUE?

Answer:

It requires a separate charge or fee