PSI PROPERTY AND CASUALTY PRODUCER PRACTICE EXAM
TRAINING QUESTIONS WITH COMPLETE SOLUTIONS VERIFIED
2024
Which format for a Personal Auto Policy is Correct?
A. Part A-Damage to your Auto; Part B Un/Underinsured Motorists; Part C-
Liability; Part D-Med Pay
B. Part A-Damage to your Auto; Part B-Liability; Part C Un/Underinsured
Motorists; Part D-Med Pay
C. Part A-Liability; Part B-Med Pay; Part C-Un/Underinsured Motorists; Part D-
Damage to your Auto
D. Part A-Liability; Part B-Un/Underinsured Motorists; Part C-Med Pay; Part D-
Damage to your Auto
C. Part A-Liability; Part B-Med Pay; Part C-Un/Underinsured Motorists; Part D-Damage
to your Auto
**
If Angela is struck by a vehicle while crossing the road to pick up her mail , her
injuries can be covered by?
A. her homeowners Med Pay.
B. her Personal Auto Med Pay.
C. the driver's Personal Auto Med Pay.
D. her Personal Auto Liability.
B. her Personal Auto Med Pay.
**
PAP Med Pay Covers you and your resident relatives as pedestrians.
All of the following situations represent additional personal liability exposures
that can be met with an umbrella policy EXCEPT:
,A. travel outside of policy territories.
B. liability arising out of business pursuits.
C. losses or liabilities in excess of policy limits.
D> any gaps in personal lines policies.
B. liability arising out of business pursuits.
**
Which of the following is how defense costs are paid in relation to the limit of
insurance under the Personal Auto Policy for Bodily Injury and Property Damage
Part A - Liability coverage?
A. included in the limit
B. in excess of the limit
C. under separate limit
D. up to the limit
B. in excess of the limit
**
Supplementary payments, including defense costs, are paid in addition to the limit of
liability.
Carrie has a Personal Auto Policy with Liability limits of 25/50/10 when she is
ruled legally responsible for a Collision with another vehicle in which 3 people are
injured. Occupant #1 sustains injuries of $30,000. Occupant #2 injuries of $20,000
and Occupant #3 injuries of $10,000. What amount will Carrie's policy pay for the
claims made by these three people?
A. $50,000 plus defense costs
B. $55,000 plus defense costs
C. $60,000 plus defense costs
D. $60,000 minus the deductible
A. $50,000 plus defense costs
,The policy will pay no more than $25k for any one person's injuries and no more than
$50k for ALL the Bodily Injury. If we pay $25k [max per person] for #1, $20k for #2, and
$10k for #3, the total would equal $55k, which would exceed the coverage amount
allowed.
Any defense costs would be paid in addition to the limits.
A Personal Auto Policy has limits of 100/300/50. What does the number 100
represent if the policy owner negligently causes an auto accident?
A. the most the company will pay for property damage to any single vehicle
B. the most the company will pay for bodily injury done to any one person
C. the most the company will pay for property damage in any one occurrence
D. the most the company will pay for bodily injury caused in any one occurrence
B. the most the company will pay for bodily injury done to any one person
A Personal Auto Policy has limits of 100/300/50. What does the number 50
represent if the policy owner negligently causes an auto accident?
A. the most the company will pay for property damage to any single vehicle
B. the most the company will pay for bodily injury done to any one person
C. the most the company will pay for property damage in any one occurrence
D. the most the company will pay for bodily injury caused in any one occurrence
C. the most the company will pay for property damage in any one occurrence
Which statement concerning the Defense Costs of a Personal Auto Policy is
True?
A. Defense costs are contained within the liability limits.
B. Defense costs are paid only if you are legally liable.
C. Defense costs are not subject to a dollar limit.
D. Defense costs are available if you meet the coinsurance requirement.
C. Defense costs are not subject to a dollar limit.
, The PAP doesn't have a stated limit for defense costs. Defense costs can be paid even
if you are not found to be negligent, that is the objective of your defense.
To be eligible to receive workers' compensation benefits, an employee must:
A. be on the job for at least 30 days.
B. be injured in a work-related incident.
C. be free from negligence.
D. report the injury to his employer within 48 hours.
B. be injured in a work-related incident.
All the following are federal worker's compensation laws EXCEPT the:
A. Jones Act.
B. Federal Employers Liability Act.
C. Gramm-Leach-Bliley Act.
D. Longshore and Harbor Workers' Act.
C. Gramm-Leach-Bliley Act.
For the purpose of worker's compensation insurance, all of the following may be
subject to the workers' compensation laws, either as an employer or an employee
EXCEPT:
A. an insurance producer.
B. a building contractor.
C. the employee of a party store.
D. a crew member of an ocean going vessel.
D. a crew member of an ocean going vessel.
**
For ocean-going injuries to crew members, special marine coverage applies. All other
options could be required to have workers' compensation coverage.
Andre has a Personal Auto Policy with the liability limits of 250/500/250. His
Homeowners policy is written with a liability occurrence limit of $200,000 and his
Boatowners policy with liability limits of $300,000 per occurrence. Andre also
TRAINING QUESTIONS WITH COMPLETE SOLUTIONS VERIFIED
2024
Which format for a Personal Auto Policy is Correct?
A. Part A-Damage to your Auto; Part B Un/Underinsured Motorists; Part C-
Liability; Part D-Med Pay
B. Part A-Damage to your Auto; Part B-Liability; Part C Un/Underinsured
Motorists; Part D-Med Pay
C. Part A-Liability; Part B-Med Pay; Part C-Un/Underinsured Motorists; Part D-
Damage to your Auto
D. Part A-Liability; Part B-Un/Underinsured Motorists; Part C-Med Pay; Part D-
Damage to your Auto
C. Part A-Liability; Part B-Med Pay; Part C-Un/Underinsured Motorists; Part D-Damage
to your Auto
**
If Angela is struck by a vehicle while crossing the road to pick up her mail , her
injuries can be covered by?
A. her homeowners Med Pay.
B. her Personal Auto Med Pay.
C. the driver's Personal Auto Med Pay.
D. her Personal Auto Liability.
B. her Personal Auto Med Pay.
**
PAP Med Pay Covers you and your resident relatives as pedestrians.
All of the following situations represent additional personal liability exposures
that can be met with an umbrella policy EXCEPT:
,A. travel outside of policy territories.
B. liability arising out of business pursuits.
C. losses or liabilities in excess of policy limits.
D> any gaps in personal lines policies.
B. liability arising out of business pursuits.
**
Which of the following is how defense costs are paid in relation to the limit of
insurance under the Personal Auto Policy for Bodily Injury and Property Damage
Part A - Liability coverage?
A. included in the limit
B. in excess of the limit
C. under separate limit
D. up to the limit
B. in excess of the limit
**
Supplementary payments, including defense costs, are paid in addition to the limit of
liability.
Carrie has a Personal Auto Policy with Liability limits of 25/50/10 when she is
ruled legally responsible for a Collision with another vehicle in which 3 people are
injured. Occupant #1 sustains injuries of $30,000. Occupant #2 injuries of $20,000
and Occupant #3 injuries of $10,000. What amount will Carrie's policy pay for the
claims made by these three people?
A. $50,000 plus defense costs
B. $55,000 plus defense costs
C. $60,000 plus defense costs
D. $60,000 minus the deductible
A. $50,000 plus defense costs
,The policy will pay no more than $25k for any one person's injuries and no more than
$50k for ALL the Bodily Injury. If we pay $25k [max per person] for #1, $20k for #2, and
$10k for #3, the total would equal $55k, which would exceed the coverage amount
allowed.
Any defense costs would be paid in addition to the limits.
A Personal Auto Policy has limits of 100/300/50. What does the number 100
represent if the policy owner negligently causes an auto accident?
A. the most the company will pay for property damage to any single vehicle
B. the most the company will pay for bodily injury done to any one person
C. the most the company will pay for property damage in any one occurrence
D. the most the company will pay for bodily injury caused in any one occurrence
B. the most the company will pay for bodily injury done to any one person
A Personal Auto Policy has limits of 100/300/50. What does the number 50
represent if the policy owner negligently causes an auto accident?
A. the most the company will pay for property damage to any single vehicle
B. the most the company will pay for bodily injury done to any one person
C. the most the company will pay for property damage in any one occurrence
D. the most the company will pay for bodily injury caused in any one occurrence
C. the most the company will pay for property damage in any one occurrence
Which statement concerning the Defense Costs of a Personal Auto Policy is
True?
A. Defense costs are contained within the liability limits.
B. Defense costs are paid only if you are legally liable.
C. Defense costs are not subject to a dollar limit.
D. Defense costs are available if you meet the coinsurance requirement.
C. Defense costs are not subject to a dollar limit.
, The PAP doesn't have a stated limit for defense costs. Defense costs can be paid even
if you are not found to be negligent, that is the objective of your defense.
To be eligible to receive workers' compensation benefits, an employee must:
A. be on the job for at least 30 days.
B. be injured in a work-related incident.
C. be free from negligence.
D. report the injury to his employer within 48 hours.
B. be injured in a work-related incident.
All the following are federal worker's compensation laws EXCEPT the:
A. Jones Act.
B. Federal Employers Liability Act.
C. Gramm-Leach-Bliley Act.
D. Longshore and Harbor Workers' Act.
C. Gramm-Leach-Bliley Act.
For the purpose of worker's compensation insurance, all of the following may be
subject to the workers' compensation laws, either as an employer or an employee
EXCEPT:
A. an insurance producer.
B. a building contractor.
C. the employee of a party store.
D. a crew member of an ocean going vessel.
D. a crew member of an ocean going vessel.
**
For ocean-going injuries to crew members, special marine coverage applies. All other
options could be required to have workers' compensation coverage.
Andre has a Personal Auto Policy with the liability limits of 250/500/250. His
Homeowners policy is written with a liability occurrence limit of $200,000 and his
Boatowners policy with liability limits of $300,000 per occurrence. Andre also
