PSI CA PROPERTY AND CASUALTY PRACTICE EXAMINATION QUESTIONS WITH
COMPLETE VERIFIED GRADED A+
1 Can a lender, as a condition of making a loan, require that any insurance be
placed through a particular insurance agent or broker?
The loan recipient may always select a particular agent or broker of their choosing
2 A claimant can be any of the following EXCEPT
EXCEPT a person who is conducting an investigation of a claim on behalf of an insurer
3 All of the following are to be specified in an insurance policy EXCEPT
EXCEPT the financial rating of the insured
4 Which of the following provisions of free insurance offered as an incentive to
purchase or rent property is TRUE?
It requires a separate charge or fee
5 What is the method used for placing business with the California Automobile
Assigned Risk Program?
The percentage of CAARP policies required is equal to the percentage of regular
insurance policies the insurer has issued within the State
6 Whether admitted or nonadmitted, how does a "foreign" insurer differ from an
"alien" or "domestic" insurer?
A "foreign" insurer is organized under the laws of another state within the United States
7 All of the following are reasons employers liability insurance is needed in
addition to workers' compensation insurance EXCEPT
EXCEPT to pay medical bills
, 8 What is the purpose of the experience modification system in the California
workers' compensation experience rating system?
It expresses a particular company's loss or claims history as a percentage to all other
companies in the industry
9 Which form of negotiation is covered under the definition of "transact" as
applied to insurance?
Negotiations preliminary to execution
10 Which type of coverage protects against loss caused by earth movement?
A stand-alone Earthquake Insurance policy specifically insuring against loss caused by
land subsidence
11 Which circumstances in a pretext interview determine if the questions are
permissible?
When an insured is consulted by a person who hides his true identity on purpose when
fraud for a claim is suspected
12 Which is TRUE regarding expectant or contingent interest?
Expectant or contingent interest does NOT constitute insurable interest
13 "Person" means all of the following EXCEPT
EXCEPT an organizational trust
14 Which of the following is TRUE regarding continuing education requirements
of an agent or broker?
Any licensee shall satisfactorily complete 24 hours of instruction prior to license
renewal.
COMPLETE VERIFIED GRADED A+
1 Can a lender, as a condition of making a loan, require that any insurance be
placed through a particular insurance agent or broker?
The loan recipient may always select a particular agent or broker of their choosing
2 A claimant can be any of the following EXCEPT
EXCEPT a person who is conducting an investigation of a claim on behalf of an insurer
3 All of the following are to be specified in an insurance policy EXCEPT
EXCEPT the financial rating of the insured
4 Which of the following provisions of free insurance offered as an incentive to
purchase or rent property is TRUE?
It requires a separate charge or fee
5 What is the method used for placing business with the California Automobile
Assigned Risk Program?
The percentage of CAARP policies required is equal to the percentage of regular
insurance policies the insurer has issued within the State
6 Whether admitted or nonadmitted, how does a "foreign" insurer differ from an
"alien" or "domestic" insurer?
A "foreign" insurer is organized under the laws of another state within the United States
7 All of the following are reasons employers liability insurance is needed in
addition to workers' compensation insurance EXCEPT
EXCEPT to pay medical bills
, 8 What is the purpose of the experience modification system in the California
workers' compensation experience rating system?
It expresses a particular company's loss or claims history as a percentage to all other
companies in the industry
9 Which form of negotiation is covered under the definition of "transact" as
applied to insurance?
Negotiations preliminary to execution
10 Which type of coverage protects against loss caused by earth movement?
A stand-alone Earthquake Insurance policy specifically insuring against loss caused by
land subsidence
11 Which circumstances in a pretext interview determine if the questions are
permissible?
When an insured is consulted by a person who hides his true identity on purpose when
fraud for a claim is suspected
12 Which is TRUE regarding expectant or contingent interest?
Expectant or contingent interest does NOT constitute insurable interest
13 "Person" means all of the following EXCEPT
EXCEPT an organizational trust
14 Which of the following is TRUE regarding continuing education requirements
of an agent or broker?
Any licensee shall satisfactorily complete 24 hours of instruction prior to license
renewal.
