PSI EXAM PROPERTY AND CASUALTY

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PSI EXAM PROPERTY AND CASUALTY

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -59 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: Which of the following must be prominently displayed so that it can be readily inspected on the licensee?

Answer:

Currency and capacity Question 2: 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: All of the following are to be specified in an insurance policy EXCEPT

Answer:

The financial rating of the insured Question 4: What criteria must a person meet in order to be qualified to purchase a good driver discount policy?

Answer:

Being licensed to drive a motor vehicle for the previous 3 years and has not had more than 1 violation point as determined by the CIC

Question 5: Which condition is NOT required to be met for a surplus line broker to advise any home state insured or applicate that coverage has been, or will be obtained from a nonadmitted insurer?

Answer:

An annual payment as been received by the insurer?Question 6: Whether admitted or nonadmitted, how does a "foreign insurer differ from alien or domestic?

Answer:

A foreign insurer is organized under the laws of another state within the US

Question 7: Which statement accurately describes de-mutualization

Answer:

A mutual insurance company that decides to convert to a stock company Question 8: As used in the insurance code, the word "Shall" is mandatory and the word "may" is permissive EXCEPT

Answer:

Unless otherwise apparent from the context

Question 9: ALL of the following are examples of open policies EXCEPT

Answer:

Agreed Value Question 10: All of the following are TRUE regarding the process to change the California Code of Regulations EXCPT

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The office of administrative law may substitute its own judgement for that of the rulemaking agency Question 11: Except in a case where the property is being held as a carrier or depository, what is the insurance interest is measured by?

Answer:

The extent to which the insured would be damnified by loss or injury to the property

Question 12: Which type of coverage protects against loss caused by earth movement?

Answer:

A stand alone earthquake insurance policy specifically insuring against loss caused by land subsidence Question 13: While both work with an insurer, how does an "Insurance broker" differ from an "insurance agent"?

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The broker does not transact on behalf of an insurer, while the agent does Question 14: If fiduciary funds are received by any licensee, the funds shall be maintained in any of the following EXCEPT

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Bods issued in all 50 states of the US Question 15: Who is able to place business through the California Automobile Assessed Risk Program?

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Only agent/brokers licensed in fire and casualty who have also been certified through CAARP Question 16: Where must the address be printed for the principal office that is required for every broker agent and resident insurance casualty broker-agent?

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Applications for license and renewals Question 17: A "personal lines" agent or broker is allowed to transact what type of insurance coverage?

Answer:

Noncommercial automobile and residential property Question 18: All of the following are authorized activities for the limited lines automobile insurance agents EXCEPT if the agent

Answer:

Charges and collects a brokers fee for service

Question 19: Which circumstances in a pretext interview determine if the questions are permissible?

Answer:

When an insured is consulted by a person who hides his true identify on purpose when fraud for a claim is suspected Question 20: Which of the following terms refers to any evidence or documentation in the possession of the insurer that provides any evidence of a claim and that reasonably supports the magnitude or the amount of the claimant loss

Answer:

Proof of claim Question 21: What is the punishment for a person who refuses to deliver books, records, or assets to the commissioner when subject to a seizure order in an insolvency proceeding?

Answer:

Not more than a 1k fine and/or 1 year imprisonment

Question 22: Which of the following is TRUE regarding nonadmitted insurers?

Answer:

Acting as an agent for a nonadmitted insurer is considered a misdemeanor Question 23: The Insurance Commissioner may deny an application for any license issued for any of the following EXECPT

Answer:

The applicant is lacking in good judgement Question 24: The Managing General Agent negotiates and binds ceding insurance on behalf of whom?

Answer:

The insurer

Question 25: Which is TRUE regarding expectant or contingent Interest?

Answer:

Expectant or contingent interest does NOT constitute insurable interest